Does the thought of budgeting make you nervous?
Saving money doesn’t mean sacrificing all the little joys in life or putting aside amounts so big it feels impossible. But here’s the truth: saving doesn’t have to be scary or overwhelming!
You don’t need to start with large amounts—small, consistent changes can make a big difference over time.
Let’s break it down and show you 10 simple budgeting tips to help you save money without feeling like you’re missing out on life.
Read: How can I save money from my salary to buy a house
Keep a Track of How Much you are spending:
Most of us have no idea about how much we are spending on
- Essentials
- Food Items/Restaurant
- Fuel/Transportation
- Shopping
So, what happens is that we spend without even realizing that we are overspending on certain items.
Many budgeting apps like YNAB, Goodbudget, and Everydollar are helpful and recommended for saving money.
Your Goals Should Be Realistic
This is a common problem in beginners. They don’t set realistic goals and then they quit the thought when things don’t turn their way.
Instead of aiming to save $500 in a month, start with $50. No matter how much you earn, start small. You will be able to continue your saving habit and develop a habit.
Celebrate small wins—it will keep you motivate to continue.
Follow the 50/30/20 Rule
There are several articles and blogs on these 50/30/20 rules of budgeting. So, what is this tip about?
It means allocating our income based on 50% needs – rent and groceries.
Next 30% on your wants – dining out, Netflix, Movies, Fun
Rest 20% on savings.
Cut Unnecessary Subscriptions
How many active subscriptions do you have? Are you using them?
You are going to find a few subscriptions that you do not need. Just cancel the ones you rarely use and save $15-$20 a month.
Eat at Home – Save Restaurant Bills:
Cooking at home instead of eating out can save you $50 or more per week.
Bonus: It’s healthier too!
Carry a List with You:
Instead of just buying in the supermarket, carry a list of all the items you need and have to buy. Just buy those and you should be done.
This avoids impulse purchases like snacks you don’t really need.
Avoid Credit Card Temptation:
Leave your credit card at home for non-essential shopping trips. Pay with debit or cash to prevent overspending.
Use Cash for Discretionary Spending:
Online payments lead to overspending because your bank tells you have the money. You can spend as much as you want. However, in reality, if you are saving every month, you cannot afford to do that.
Just set aside $100 in cash for entertainment. Once it’s gone, no swiping the card!
Set Up Automatic Savings:
This is the most disciplined way of saving. You do not have to do anything.
If you need to make recurring payments for savings, the bank can do it automatically for you.
Ask your bank to transfer $20 to your savings account every payday. You’ll save without even thinking about it.
Remember About Budget-Friendly Wins:
You do not have to cancel all treats, parties and events to make it within budget. Just make sure, you keep it within budget.
Instead of spending $50 on a night out, invite friends over for a potluck dinner. Celebrate your savings in a fun, inexpensive way!
