Best Tips for Living Cheap and Saving Money on a Low Income (low budget tips for personal growth and development)

Even if you are a beginner to managing your finances, these money saving strategies are easy! Learn how to budget your money efficiently to reduce your money stress for good:

2. Use an Efficient Savings Account

It’s helpful to have a clear delineation between your savings and spending money.

It’s encouraging to add to your savings account and watch it grow. On the other hand, when you dip into a savings to cover an expense, it should feel obvious that you are taking from your separate savings account.

If all of your money is pooled into one account, your savings is just an idea. You’re not going to feel encouraged by its growth and you won’t mind borrowing from it whenever.

Find a savings account with a high APY (an APY is the interest payment that banks pay you to keep money in your savings account). Check out the rates at your local credit union. They are not-for-profit! Which means they have more money to send your way in the form of a higher APY.

Save Money & Earn Money With a High APY

Open a savings account with a higher interest rate (APY).

CIT Savings Builder pays an APY 5X more than the average savings account (APY national average = 0.08%).

Automate your savings! Toggle on the Auto Direct Deposit to have $100/month slide into your Savings Builder account, and you’ll earn CIT’s top interest rate.

(See CIT’s Live banner below for their current APY.)

3. Simplify Your Expenses

Open up your bank/credit card statements and start combing through your expenses.

Where is your money going every month? Cut the expenses that you forgot you had (i.e. subscription services).

Use a calculator to add up your leisurely spending. Small purchases add up faster than you think.

Simplifying your expenses means to be efficient with your money. It’s your money. You earned it. Spend it in a way that is most supportive to your life and happiness.

4. Get Out of Debt

Build a savings? Or pay down debt?

What’s most important is that you have an emergency fund. You want $1,000 in your savings account as soon as possible to cover unexpected emergency expenses. Otherwise, a surprise expense will have you taking on more debt.

But once you have $1,000 in savings, switch over to paying down debt.

It is difficult to build a savings when you are losing money to interest. That is why you’ve got to tackle your debt right away.

Use the debt snowball strategy to pay down your debt. Pay off your smallest debt first. Once it’s paid off, you’ll have more money to put towards your next smallest debt. Do this until you are debt free.

Once you’re debt free and you’re not losing money to interest, then it is time to return to building your savings. You’ll be impressed with how fast your money grows without debt weighing you down.

Try a Balance Transfer Credit Card

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