Skip to Content

What Can You Do if You Can’t Afford to Save

What Can You Do if You Can't Afford to Save

Most people know that saving money is important.

You need extra cash to put aside each month if you want to reach your financial goals, like buying a new home or going on vacation. You’ll also need to find extra cash that you can put into emergencies, just in case something goes wrong and you need some financial support.

Unfortunately, if you’re just about making ends meet, it can be difficult to find cash for both your bills and your savings.

So, what can you do when you can’t really afford to save as most people would?

1.     Cut one Expense

One of the biggest mistakes people make today is assuming that saving is a “nice to have” thing, rather than a must-have. Ultimately, just like your rent or mortgage payments, your savings should be a mandatory part of your budget. If you’re not making space for savings in your financial plan, then you’re not living in your means.

That means that you’ll need to look for somewhere that you can cut costs. For some people, this will mean giving up regular nights out with friends or at least reducing their frequency. For others, it could mean looking for a cheaper house to rent if there’s no other way to save money.

2.     Collect loose change

By the end of any week, most of us will have a few loose coins or dollars left over in pockets and bags. Rather than just ignoring this money, or letting it fall down the back of your sofa, make sure that you’re getting the most out of it.

A lot of people assume that there’s no point in saving money unless it’s a reasonable amount, like a full dollar. However, even your nickels and pennies can eventually add up to something more. Just $1 in loose change per week will end up giving you a cushion of more than $50 by the end of the year. No saving is too small to take seriously.

3.     Stop Paying Over the Odds

An easy way to spend more money than you need to each month is to assume that the deal you have is the best deal you can get. However, in today’s world of comparison websites, there’s no reason to settle for less than the perfect price. Whether you’re buying a new chair for your living room, or you’re comparing your personal loan options, make sure you know all of the information.

For instance, using a comparison website to find the right loan will ensure that you’re not paying over the odds on your interest rates or fees. This means that you should have more money left over at the end of each month.

4.     Track your Spending

Sometimes, it’s difficult to understand where your money is going each month. You might be convinced that you couldn’t possibly spend any less money until you start tracking your costs more carefully. For instance, you might find out that buying your gas at the station closest to home is costing you extra because of a surcharge whenever you fill up the tank. On the other hand, you might discover that you could spend a little less if you bought certain items in bulk at the grocery store, mainly if you buy a lot of the same things regularly.

The more you track your finances, the easier it will be to make changes that make a real difference to your budget in the long-term.

5.     Banish Bad Habits

Bad habits are a common source of spending woes. For instance, if you’re a smoker, the amount you spend on cigarettes could astonish you when it’s added up over the year. If you’re a fan of having an extra drink at the bar at the end of the week, that drink could be costing you a fortune too.

Even simple bad habits like taking the car to get to the store when you could walk there if you were willing to spend the time can have an impact on your finances. Look at ways you can change your lifestyle to save more money.

6.     Find Extra Sources of Income

Finally, if you can’t find any way to cut your expenses, then your other option is to look for ways that you can make additional money. This does mean that you’ll have to invest more time into working than having fun and relaxing – which is exhausting for some.

However, there are plenty of good ways to make some extra cash these days, from doing jobs from home on your computer to turning a hobby into a small business.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

This site uses Akismet to reduce spam. Learn how your comment data is processed.