Living on a tight budget can be difficult especially if you are getting started with a minimalistic lifestyle and when living paycheck to paycheck. If you can manage your finances effectively through budgeting and savings, however, you can easily live on a tight budget without feeling deprived of basic needs.
Here are 8 tips to comfortably live on a tight budget without sacrificing your lifestyle.
1. Create a list before shopping
Creating a shopping list is the most important thing you must do in order to live on a tight budget. A list will help you avoid impulse shopping.
What is impulse shopping?
Have you ever gone to the market and ended up buying one or more items you did not plan to buy? Decisions to buy impulse products happen the moment before you buy them. Your mind comes up with a justification for why you need the product. Before you know it, the item is in your shopping cart.
This is what is known as impulse shopping. It happens every day and it is one of the many reasons most people fail to respect their budgets. Shopping centers also know that people are prone to impulse shopping. This is why stores put impulse products in allies where they expect high traffic.
This is why you should create a list before you head to the store. Everything you need from the store should be written down. A list will not be helpful if you cannot follow it. So, when you are at the store, make sure that you only buy what you wrote on the list. If an item is not on the list, do not buy it.
Related: 45 Ways to save money on groceries
2. Avoid impulse shopping
As we discussed in the previous sections, you must avoid the urge to spend extravagantly. Just because something looks good, does not mean you should buy it. The temptation to buy impulse products will always be there. It is your job to resist them at all costs.
Reflecting on why you want to live on a tight budget is a clever way to avoid impulse shopping. Of course, you can always rely on the list you create. If it is not on the list, do not buy it.
If this method does not work, rely on your goals. Why did you want to live on a tight budget in the first place? Maybe you want to save money for your house, wedding, or college. Whatever the reason is, it should be strong enough to help you navigate through continuous spending temptations.
3. Leaving your kids when going shopping
In order to successfully live on a small budget, you must avoid everything that will prevent you from achieving this goal. And that might start with living your kids at home when you are going shopping.
As you are walking through the isles, there are chances that your children will spot something they like. Once they do, they will ask you to buy that product. It can be a kids’ toy, a good-looking teddy bear, candy, or something else. This will make it hard for you to take them back home without buying them what they want.
The problem with kids is that they don’t understand the meaning of budgeting or why it is important. That is why they will want you to buy everything they like.
To avoid these issues, leave your children at home every time you are going to the store.
4. Buy second-hand products
Many people create budgets but a few of them succeed at following them. A great technique you can use however is to buy second-hand products. These products are much cheaper than brand-new products.
A great place to start is your local goodwill, thrift stores, etc. You can also buy cheap everything from garage sales, craigslist, etc. These places sell everything you will need at a fraction of the cost.
This technique will allow you to spend less money on things you need and have some leftovers. As a result, you could use the money you just saved on unexpected expenses. In addition, buying second-hand products will increase your chances of succeeding.
5. Take advantage of coupons, sales, and other discounts
Every store has a lot of items sold at a discount. Before you randomly start buying products, check the store and buy only things that are on sale or discount. If the store you are used to does have what you want at a discount, check with its competitors.
If no store has something you need, consider waiting or buying its alternatives. Another good idea is to buy things you will need in the future ahead of time assuming they are sold at a big discount.
A good example is Christmas gifts. Many stores give Christmas discounts to attract a lot of customers. But, some stores give more discounts way before the Christmas season. For example, on Black Friday almost everything is on sale. So, if you are planning to give Christmas gifts, plan ahead. Buy gifts on Black Friday and pay less.
6. Live on a tight budget by avoiding brand-name products
There is one thing millions of people don’t fully understand. Those who do fail to make the right choice. What do they miss?
Knowing the real difference between generic and brand-name products. Brand-name products are highly advertised and well-known compared to generic products. As a result, they cost more money. The misconception is that people think that brand-name products are more effective or reliable compared to their counterparts.
This is totally false. Generic products are equally effective, and therefore, people should buy them if they want to live on a tight budget or simply save money. Why pay more money if you could pay less and get the same benefits?
7. Adopt the DIY culture and avoid dining out
The best and easy way to live on a tight budget is to DIY everything you can. Some people think that DIY only applies to creating or fixing products. But this term applies to almost everything. DIY goes beyond creating your own furniture, fixing your own car, etc.
Anything you can do for yourself, do it.
This also includes making your own meals. Yes, learn how to cook if you really want to survive on a small budget. Some people think that dining out does not cost them a lot. But, they forget that for every meal, they also pay for the management team, cooks, waitresses, servants, tax, etc. Making your own meals and DYI everything you can is a clever technique that will help you live on a tight budget.
8. Be on the same page with your partner
Budgeting is a teamwork effort. If you have a partner, it is very important to communicate effectively and decide on this tight budget thing together. Have a list of what you want to accomplish and steps you are willing to take tother in order to achieve your goals.
Make sure that you agree on everything on the budget ahead of time. Just because you want to live on noodles and soup, it does not mean your partner will be comfortable doing it. Openness and communication will help you avoid conflicts in your budgeting journey and make it easy for you to succeed.
