You indeed heard about people saying this month I’m on a tight budget or come on yaar, this is the end of the month I do not have any funds left.
Well, anyone can relate to this, including me.
There were times when I felt that something was wrong with my budgeting. I started searching for ways to save money on a tight budget just to realize how badly I was managing the money.
So, if you are just like me, confused about savings and looking for easy ways to save money on a tight budget, you hit the right spot.
Best Ways To Save On A Tight Budget
Well, there are enormous numbers of ways to save money. But the main problem arises when you have less income and higher spending. This is the situation where you have to think about the future and become mindful in terms of spendings.
Do not worry, I’ll not share something that is impossible to work. All the below mentioned ways to save money on a tight budget are tried and tested by none other than your author i.e. “me”.
Think about your vital spendings
Every month we get a paycheck; so as soon as you get your salary, take a notebook or use a spending app and list down the things on which you are thinking of spending your money.
Now, get back to the topic. So once you list down the things and arrange them on a priority basis. It helps you understand what’s more important and what’s not.
For example - suppose you are planning to buy some clothes and if you have enough in your closet, you do not have to spend on it. Just save that money for something else.
Similarly, you can apply this example to anything and end up saving a lot more than you think of.
Create budget
A Budget is of two types: 1) short term budget and 2) long term budget. Depending on your goals, you can divide it.
Let’s understand it.
For monthly expenses, you have to create an individual budget and for future expenses, you have to create a separate budget.
Let me clear a future expense point with an example. Suppose you are planning to move abroad for higher studies, from today, you have to think of how much money you’ll need for it and start creating an individual budget for it.
Also, while creating a budget for anything, ask a few questions to yourself. Are you actually going to spend on it? Is it worth the spending?
For this, you can take the help of spreadsheets if you are good with it. Personally, I love to use spreadsheets and ask people to do the same.
Stick to the budget
Anyone can create a budget but sticking to the budget is crucial and this is where most people fail. Don’t stress out, I’ve a solution for this - follow the 50/30/20 rule. I know you might have heard this multiple times. Every youtuber and blogger blabber about it. But this is something worth trying.
In the 50/30/20 rule, you can divide your budget just like I do 50% for my requirements, 30% for desires, and 20% for savings & repayments of debts. This way, you have enough funds for everything. Most importantly, having a budget for everything means you can stick to the budget.
Do not use credit cards
Somehow credit cards become a way to show off! If saving on a tight budget is your aim, you have to immediately give up on credit cards. Otherwise, you may end up bankrupt.
I’m not here to scare you but there are many incidents like this. So, it is better to keep your side safe.
I know a few of them will cross me by saying “credit cards help us buy things when we do not have money”. You are absolutely right but have you ever thought, “using credit cards creates future debts for you”. If not, start thinking. You’ll understand how much money you wasted like this.
Also, most of the time people use credit cards to purchase luxury items like iPhone, branded clothes and shoes, etc. Do you really need them?
I guess the answer is no. Now, you might have understood why I said to give up on credit cards.
Know the difference between wants and needs
While saving money on a tight budget in 2025, knowing the difference between wants and needs is vital. Sometimes people don’t understand it and spend money according to their desires.
But, you should stop behaving like that! Needs are those that are essential to life. And what is a better example than food, clothes and shelter?
On the other hand, wants are desired items that you wish to have to increase your standard of living, like designer clothes, shoes, car stereos and others.
So, after knowing the difference, I would suggest having only limited wants that are essential for you. Surprisingly it will save more money than you expect.
Carry your mealbox to the office
Another best way to live on a tight budget is to take your meal box to the office. I have seen many people spending money on canteen food, street food or junk food. However, once in a while it's absolutely okay.
For example, if you eat out several times a month, you are spending a lot of money on eating.
Instead, cook your favorite food at home and take that to the office. It will reduce your habit of spending on a meal, keeping you healthy and saving your money.
Use prepaid cellphone plans
Undoubtedly, everyone uses a cellphone and there are high chances you are reading this article from your phone. But what plan are you using prepaid or postpaid?
We all know on postpaid plans there is no limit as they charge you extra if you exceed the limit and this is where the sim card companies rob you. So, when searching for the ways to live on a tight budget, using prepaid sim cards will be the master stroke.
I know many people say postpaid works best. I also listened to one of my colleagues and regretted it miserably (it happened with me in mid 2015, story for another time) as I was paying almost double of the plan I purchased.
Create grocery list and stick to it
While growing up I observed one thing which is my mom was always creating grocery lists (still she does the same) before shopping and when I started following her formula I realized how effective it is!
I remember when I thought of saving on a tight budget this tip was on my list at number one position. Also before creating a grocery list check your refrigerator and pantry to avoid buying items that you already have in your kitchen.
So, plan what you want to have per week and shop accordingly, and it will save your time, money and wastage of food. Plus, creating a list will give you an overview of the spendings you require.
Sell the things you no longer needed
I consider it is the best way to save money on a tight budget. Honestly speaking, a few years ago, I had so many things that I was not using at all. One day I was discussing this thing with one of my friends and she told me that there are so many websites, like Etsy, Amazon (in some categories), etc., where you can sell your old items and earn a considerable amount.
If you have something you are not using, take a smart move and sell it. It can be your old watch, books, laptops, clothes, anything.
Use bargaining skills
I’m not saying use it everywhere, not with people who try to sell something just to have a two times meal. Use this skill whenever you feel like someone is telling you extremely high price.
For this, you have to enquire about the price from two or three shops, compare them and take it from the place where you can get it at least price.
Bargaining skills you can learn from homemakers - you should watch them. They have a supernatural power of bargaining.
Say no to gym
Are you like one of those who gets excited on the 1st Jan and then that excitement slowly dies? You need to read this.
If you fit into this category, trust me don’t waste your money. Instead choose exercise from home, go for a jog, do yoga, cardio, etc. There are several ways to get into shape.
Icing on the cake, you have YouTube and Instagram where you can watch fitness related videos.
Do not hire the maid
Having a maid or not is completely your choice because sometimes, we need a helping hand. But do you really need a maid? Means if you can manage the house chores on your own or with your partner, you can save up to 10,000 INR. Don’t you think it’s a big amount?
Avoid electronic items use
Nowadays, almost every house has a washing machine, dishwasher, AC and so many other electronic items. You know very well, whenever you use any of these, it affects the electricity bill and ends up making a hole in your pocket.
Next time, when you have time, do laundry and utensils on your own. It helps you save on electricity bills and it’s kind of a good exercise.
Also, avoid using AC when it's cool outside because many times we keep it ON even though we don’t need it.
Switch off everything when no one at home
It’s a good habit to check all the rooms before leaving the house. No matter how much in hurry you are, keep this in mind always.
However, I see many people keep their refrigerator ON when they are about to be away from home for more a week
In my opinion, when you are going for a vacation, it is better to empty the refrigerator and OFF it. Switching off all the appliances before you go on holiday is always a good move, including a fridge.
Do your hairs and nails at home
If you are someone who frequently visits a salon, you really need to think about it. Do you really need to visit the salon this frequently? Can’t you do this on your own?
The simple answer is “yes”, you can. It might be possible that you can do your nails but are unable to hair and vice versa.
Even if you can’t, try to minimize your frequent visits to the salon. Make your visit once a month. Trust me, you’ll end up saving a lot.
Do not use vehicles for short distances
Every house has one or two vehicles; as a result, even if you have to go for five minutes distance, you prefer a vehicle. I won’t say this is your mistake as every individual wants comfort.
But this comfort and laziness directly affects your pocket and health. If possible choose to walk over a vehicle for a short distance. Doing this will make a significant change in your life.
Compare the prices before you make purchase
How many of you compare the prices before making a purchase? I guess the answer will be mixed.
Honestly speaking I was the kind of person who hated to do bargaining. I used to be like, if I visit any store, I’ll buy something for sure.
But not now. I understand that it is a good habit to compare prices from different stores or local markets and then make a purchase. This gives you an idea of the actual price of the product.
However, I still avoid bargaining at local shops as they do the work for living not to become rich. This is just me.
The comparison approach works best when you are shopping from big stores and malls. If you are getting the same thing from the local market at half of the price, why do you need to buy from big stores or malls?
Always track your spending
I used to struggle on creating a budget and saving money until I found out about personal tracking. You can keep a diary to create a budget as soon as you get a salary or paycheck.
Personally I prefer using a diary. I know this is kind of outdated one but I love doing it this way. However, if you are bad at keeping a diary, use a personal tracker app. You’ll find these apps are available for both iOS and Android.
Try 30 day rule
Till this date, you surely heard about this so many times. But have you ever tried it?
I was just like you. Let me tell you how I use this 30 day rule.
Whenever I see something that looks good to my eyes, I just control myself and think, do I really need this?
I just save that product photo, price and shop name at that moment and wait for 30 days. During this period I think about the product in 360 degree and most of the time I just pass it because I never needed that item and sometimes, I simply forget about it.
You can also try this tactic. However, even after passing these days, you want that product then buy it. Afterall, this is your life.
Cut off your cable connection
Many people keep the cable connection even though they don’t have time to watch TV.
A few years back I was in the same situation because of my busy schedule of college, part time job, studies, I did not have time to watch TV. And because of me my parents were also unable to watch it as we had only one TV.
However, I asked my parents to cut the cable connection and they supported me as they also got convinced with my decision.
So if you don’t need a cable connection, just cut it off. Switch to more affordable or free options like Netflix and YouTube. There are many available in the market.
Avoid brand shopping
In this Instagram era, most people tend to buy the brand products that they don't even like. They buy it just because their favorite influencer promoted it.
Never do something just because someone else does it. You are a different person, make your own choices.
For a moment forget about what I said earlier. But if you do brand shopping, you are wasting too much of your money, especially when you have a tight budget or you are planning to save.
Avoid starbucks and CCD
Don't get irritated. I know saying no to our favorite things is a really hard task to do.
If you are a frequent Starbuck and CCD visitor, it’s going to be really difficult for you to quit this. I get it.
But just calculate how much money you are spending on this? Isn’t it easier to find some affordable alternatives or DIY. Think about it.
Save 20% for your emergency fund
As soon as you get salary in your hand, make sure that you are keeping 20% aside for emergencies.
Emergencies can knock on your door at any time just like uninvited guests. You must prepare yourself for such rainy days.
Open an individual account for an emergency fund and never touch that account unless it’s an emergency. I prefer this way.
Create long term and short term saving goals
Keep all your options open. Don’t put all your eggs in one basket.
Some people focus on one goal at a time and this is a good thing but you can not apply this rule when it comes to saving.
Saving goals must be divided as per future requirements. Suppose you want to save for a washing machine, it will come into short term goal.
Likewise, there are many things that you want to achieve, student loans, credit card bills, etc. So strategize things accordingly.
Use coupons
Coupons work like saviours if used properly. People don’t keep track of coupons and when it’s most needed then they don’t have any left with.
So whenever you get new coupons online or offline, keep track of them. If it sounds like too much for you, use browser extension.
Yes, you heard it right. Through browser extensions you do not have to keep track of coupons, your selected coupon tracker works on behalf of you and looks for coupons whenever you shop online.
Do one day no spend challenge
Interesting, right? Everyday we spend on something even if it’s a small purchase.
What if you decide a day where you are not going to spend anything. Now a few people will argue with me about what if something unusual happens and we have to spend money.
So yes, I do understand that emergencies can knock on your door at any time but not always. There will be a day in your calendar where you do not need to spend. Just look for that day.
In my case, I do not choose a particular day as most of the time naturally it happens that I don’t spend at all.
How much can you save?
The answer is not fixed. The saving amount varies from person to person. Depending on your monthly salary and cut off expenses, you can calculate the amount you save every month.
So do not look for an exact number. I can also provide you the amount I save doing all these things but I do not want to.
As I said earlier every person is different and so you. Make your moves and you’ll see how much you can save. Start slowly. Adapting good things takes time. Trust the process and give yourself time. Don’t be harsh on yourself.
Bottom line
So these are my personal favorite living on a tight budget tips in 2025 that I followed in my tough times and even now I follow them.
The list of things I followed or following was or is quite long. But I wanted to share the best tips with you so I listed the above tips.
Hope you would find some useful tips from the above blog.
I know living and saving on a tight budget is not an easy job. But if you think from a future perspective, trust me it gives you strength.
In the end, stay strong, this time will also pass!
