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Five creative ways to save money while working on a tight budget

Knowing how to save money is the foundation of financial resilience. Unexpected events—like the COVID-19 pandemic—can punch a hole in your budget and a savings fund provides a cushion to prevent getting caught off guard and distressed. 

Saving provides more than just a gift of financial security. It also allows you to indulge in all that life has to offer, whether it’s buying your dream home, launching your own business, or even retiring comfortably.

But not all have the opportunity to save, especially for those who are working with a tight budget that’s split between the bills and daily necessities amid continued price hikes of goods. Saving is almost close to impossible. 

There is no right or wrong formula for how to save money and it doesn’t always require one to start with a big amount or even undergo a total lifestyle change. All you need are two things: consistency and discipline.

In preparation for World Savings Day on October 31, we rounded up five (5) creative money saving tips to help you get started on your savings journey. Read on:

Keep the change, literally

The concept of this classic coin-saving strategy is simple: keep whatever loose change you get from your daily cash transactions. It could be in a money jar or the traditional piggy bank. By collecting your excess coins and spare bills, you are slowly building up your savings fund. 

For extra motivation, you can also try adding a label or naming it according to your financial goal (i.e. ‘Big Bossing plan’ or ‘The fabulous family flies again plan’). You can get as creative as you want to help you visualize your goals! Once your money jar or piggy bank is full, deposit the amount straight into a formal savings account with a bank you trust. 

Declutter unwanted stuff & sell them

When was the last time you got rid of unnecessary stuff at home? Rather than letting those non-essential items gather dust in your closets and drawers, why not make a profit from them? 

Decluttering not only keeps your house clean, it can also be an avenue to earn extra income to beef up your savings fund! Make sure to plan and do your clean-up in stages. Once you weed out the unwanted stuff, host an online garage sale or sell them through online platforms, such as Facebook, Instagram, and even Tiktok. 

Try a spend-free weekend!

Spending your two days off in frugality may be a bit extreme. But on the bright side, it allows you to save more money and curb splurging habits. It simply means a weekend free of usual budget offenders such as shopping and eating out with friends or family.

While it looks daunting, there are free and fun activities to fill your weekend without breaking your wallet, such as: 

  • Attending or watching free online classes/events
  • Walking your pet around the neighborhood 
  • Volunteering in your community
  • Learning a new skill
  • Decluttering your home 
  • Binge-watching your favorite show

Use the envelope budgeting method

This budgeting approach allows you to portion your monthly income into different categories – savings included. Once you’ve decided on the budget for each category, you’ll take the cash and place them into labeled envelopes (e.g. groceries, utility bills). The goal is for you to spend only within the amount you allotted for each expense. 

The best thing about the envelope system is that it ensures you have dedicated money for your savings fund. It also keeps you from falling victim to impulse purchases. 

Cut down on your utility bills

Best way to save money: slash your utilities consumption! Start by unplugging appliances that are not in use or fixing that leaky faucet. Tweaking your usage at home can help trim your utility bills, which means more of your budget can go to your savings fund.

Here are some practical ways to lower your bills:

  • Switch to fluorescent or LED bulbs.
  • Invest in energy-efficient cooling appliances.
  • Reduce your shower time by 1 or 2 minutes.
  • Insulate your ceilings to keep the heat out.
  • Turn off the shower and faucet when not in use.

Every peso counts. So whatever amount you commit to saving, do it with consistency regardless if it will take a long journey to your goals. Remember: there’s no better time to start but NOW. 

Planning to finance a major purchase? Don’t touch your savings! SAVii can help you get the funds you need with our affordable, reliable, and convenient salary loans. 

Reach out to your HR today and see if you can apply for a loan with us. If you have an existing account with SAVii, log in to your Employee Dashboard now!