Last updated on March 4th, 2024 at 07:12 am
Are you a minimum wagerer currently having financial difficulties due to a low income and expensive product prices? In that case, experiencing an inability to meet necessities and constantly worrying about how to make ends meet before payday can also hurt mental health due to the high cost of living.
Financial stress may be a contributing factor if you are unable to meet your basic needs and you are always concerned about how your financial status may be influencing your mood and your day-to-day life. You might discover this article to be enlightening and helpful for applying the top 5 strategies to save money on a tight budget.
READ: Smart Savings: 10 Best Ways To Save Money And Secure Your Future
TOP 5 HACKS ON HOW TO SAVE MONEY
1.) Master the Budget
A solid budget plan can help you regulate your spending and prevent overspending. Even wealthy individuals save money, so if you are on a minimum compensation, having a solid budget plan will help you and your family make the most of your meager income and create wonderful futures.
These are the two (2) basic budgeting techniques that you can use regularly to gain a better understanding.
50/30/20 Budget: The 50/30/20 rule budget only requires you to allocate 50% of your budget for necessities, 30% for extra expenses, and 20% for debt repayment and savings. If your monthly after-tax income is $5000 per month, you can set aside $2500 for necessities, $1500 for wants, and $1000 for savings or repaying debt.
This method helps you determine which purchases are essential, so it’s especially useful if you’re budgeting your costs for the first time. Use this strategy and modify your financial objectives so that paying off debt takes up more of your time.
Envelope Budget: The cash envelope system is a way to track exactly how much money you have in each budget line for the month by keeping your cash tucked away in labeled envelopes.
If you notice that you are frequently spending more money than usual, for example, take only the needed amount for food in the corresponding envelope. Nothing more. You’ll keep an eye on your expenditures and be compelled to make reductions if necessary to meet your financial goals sooner rather than later.
Never purchase something if it is not within your means; always establish financial objectives; for example, if you have a vacation coming up, you can save money gradually; pay off all of your debt; and always save for an emergency due to the fact you never know what might happen next.
2.) Kitchen Cash-flow Control
The food budget is a big deal in your household, whether you use one or not. A typical question is, “Why must we budget our meals?” I know that some of you are confused by this. Why do we need to budget for food as it’s one of our basic needs, right?
Being able to effectively manage our food expenses demonstrates the importance of food for both our daily meal consumption and financial management.
Several shopping hacks might help you to establish a daily meal plan budget.
- Buy in Bulk – having extra food in the house would give you peace of mind and allow you to save money.
- Take Time To Compare The Price – if you want to save more take a look for other available items that are the same as what you are looking for, in this you can save money by comparing the price and the sellers, you can identify the best deals and discounts if any.
- Use Coupons and Discounts – consumers can save a good amount of money when using coupons to buy their necessities.
- Wait for Sales Event – all of us are looking forward to this kind of consumer, this event is not just to help us to maintain our mental health in a good state but also help us to save more.
After you know some of the hacks to budget your shopping expenses, well it’s time for you to know how you can make a delicious yet affordable dish. You can follow this guide to cook for yourself and your loved ones.
Dish: Vegetarian Peanut Stew
Ingredients:
- 3 cloves garlic
- 2-inch ginger root
- 1 small bunch cilantro
- 1 yellow onion
- 2 sweet potatoes
- 2.5 oz spinach
- 1 cup roasted peanuts
- 15 oz crushed tomatoes
- 15 oz vegetable broth
- 1/2 cup creamy peanut butter
- 1 tsp coriander
- 1/2 tsp cayenne
- 1 T olive oil
Instruction:
- Chop yellow onion
- Mince 3 cloves of garlic
- Peel and dice 2 sweet potato
- Heat 1 tbsp of olive oil in a big stock pot. Add the chopped yellow onion and simmer for about three to four minutes.
- Add the minced ginger and garlic. Simmer for one to two minutes. Add the sweet potatoes and simmer for about five to six minutes.
- Add 1⁄4 to 1/2 tsp cayenne, 1/4 tsp pepper, 1 tsp coriander, 15 oz crushed tomatoes, 1/2 cup creamy peanut butter, and 15 oz vegetable broth (depending on how spicy you want). Simmer for about 30 minutes, or until the sweet potatoes are soft.
- When the spinach wilts, stir in about 2 cups. Add cilantro and peanuts on top.
- Enjoy with a lot of rice!
3.) Remove Unnecessary Expenses:
Does anyone know what vampire expenses are? Or what vampire expenses are called “vampire expenses?”, As we all know, vampires suck on blood; the same is accurate for your current financial situation. Do you subscribe to too many things? impulsive buyer? If you are any of these, then they are sucking away your financial stability in the same manner as vampires, but in different ways.
It is wise to consider all of the monthly expenses incurred to plan the home economy at a period like this one when prices have generally increased due to inflation. It’s important to avoid unnecessary expenses. Additionally, some typical expenses may seem harmless but can ultimately hinder savings plans.
Expenses that eventually need to be fixed and require a significant outlay include paying a fee for a credit card that you don’t use, going out to eat every day outside the office, etc. You can enjoy life without spending too much. Such as spending more time with your family at home instead of going out for a family day. During weekends, instead of going to a coffee shop, try to read inspirational books or much likely related to how to become financially free.
4.) Boost Your Hustle
We all know that having extra income is a great option for you to save more! Before that you should know passion very well. First, you have to know what you want to do or love to do and convert it into business.
If you have spare time after a long tiring day in the corporate world then you can use your extra time to become freelancing, accepting online gigs, selling via online platforms, and looking for part-time jobs.
As an aspiring freelancer who wants to build a career in this field, you can attend a free webinar or seminar or enroll to expand your knowledge and enhance your skills. There’s a site or application that might help you to find gigs, part-time, or even full-time jobs. You can explore different platforms join any Group page on your Facebook Page, and connect with other people to gather knowledge and experience!
5.) Negotiate and Advocate
The ability to negotiate is a valuable talent that can also improve your financial well-being, increase your purchasing power, and help you save money on regular expenses.
Simply listening to others, developing strong listening skills, and accepting other people’s opinions when it comes to your financial status are all important ways to increase your savings. It’s possible that they had similar experiences to yours, which is why they offer you advice. But, don’t overthink it; the decision to accept or reject the advice is all yours.
Remember Every Penny Counts
If you want your financial condition to be in good shape, you should put all five of the above suggestions into practice daily. If, on the other hand, you are still in shock and are finding it difficult to deal with, then you must go gradually but steadily. Remember, consistent practice may transform your life. Never stop working; let the outcome speak for itself. If you find this article helpful, subscribe to SMIAT Blogs to get more helpful topics and stories about money & finance.