Nomad Money Blog - 5 Ways To Save Money On A Tight Budget - Part 1

5 Ways To Save Money On A Tight Budget - Part 1

November 06, 2020 by Nomad

If you're on a tight budget, saving money can be really hard. However, by looking at your spending habits and making some small changes it becomes a lot more feasible.

Building up your savings can be so satisfying, but let's be honest it can be tough too. If you feel like you're just scraping by, the idea of setting money aside can feel nearly impossible. But it is doable - by taking a second look at our spending habits we can figure out ways to reduce our outgoings and put aside money for a rainy day too.

Here are 5 things you can do to start saving money - even if you're not on the biggest salary.

5 Ways To Save Soney On A Tight Budget - Part 1
1. Set a goal

If you're aiming for a target, it's a lot more likely you will hit it. To begin with, start aiming for something doable - perhaps try to have saved 100GBP or 1000NGN in three months' time, or whatever's possible for you. Once you've reached that goal, you can then build on it.

2. Keep track of your money

If you know where your money is going, it's a lot easier to stick to your budget. Personal finance management apps like Nomad Money let you see exactly how much you've spent every single day, where you spent it and what you spent it on. You can also review spending instantly, so there are no nasty surprised when your bank statement comes out or having transactions declined in shops.

3. Shop at discount supermarkets or local markets

Discount supermarket chains have grown massively in the UK in the last few years. And in most cases the products sold at stores like Aldi and Lidl are just as good as you would find anywhere else, but much cheaper. Take it one notch up by shopping at your local market or farmers' day. You'd be surprised how fresh the produce can be, with your money stretching further than usual.

4. Get a side hustle

Think you could be an entrepreneur? There are countless ways to make a quick buck, especially online. Use sites like Etsy or specialist platforms for services like makeup artists or Uber Eats delivery driver, or online gig economy job sites such as Fiverr where you can trade your skills. These kinds of jobs don't have to take up all your time but can make a big difference to your savings goals.

5. Avoid spending on things you don't really need

Everyone has their guilty pleasures, and we shouldn't underestimate how important they are for our quality of life. That said, it's worth asking if you can cut back or pause them for a while. Are you spending money on a music streaming service like Spotify each month? Could you switch to a cheaper subscription or listen to a non-stop music-playing radio station - even if it includes ads?

Do it the #NomadMoney way

Follow this link for the Part 2 of how to save money on a tight budget.

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