How to save money when you are broke (10 practical steps)

How to save money when you are broke? Yes, it is possible.

We have heard the phrase: First save money and then spend. Have you ever thought about what you could achieve if you save before spending?

But, as with most things, sometimes that first step is the hardest part. That is why we will teach you some steps, tips and reasons why you should save money starting today. None of these will change your life on their own, but they can make a big difference over time if you can implement more than one.

It is a recurring issue that we have the tendency to save the money that we have left over after we already spend on our tastes, instead of the habit of saving and what we have left over from what we have destined for our savings, spending it.

Has it happened to you?

This is a difficult habit to break, and it is not that from one day to the next it stops happening, but it is important to raise awareness about it so that we do not run into an empty wallet at the end of the fortnight, a savings account in zero and an emergency fund in emergency.

But, what are some of those healthy financial habits that we could be acquiring and making part of our lives to enjoy healthy finances?

We leave you here four habits that can change your life, dare to try them.

Have a clear vision of how to spend. This is achieved from the fact that each month you put the payment of your fixed expenses without delay, using automated systems, such as direct debit payments for services and credit cards.

Take advantage of your resources. This is not only about not buying to buy, but also about taking advantage of everything you still have and can be useful, because before buying or discarding clothes, shoes or appliances, there is the option of being able to repair them and continue taking advantage of them for the whole life they have left.

• It is not necessary that you have all the credit cards that they offer you. The more credit cards you have, the more you will spend and your ability to pay will be less causing you to go into debt and therefore, your finances will be in trouble. Those cards that are not necessary and rather are a luxury, you can do without them.

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A healthy way to save and start generating efficient financial support is by separating 1% 0 of your salary month after month. The joke of doing this is not to spend it as soon as possible, but to create an emergency fund or to reach some greater financial goal.

How to save money when you are broke

How to save money when you are broke

Saving money and having a plan to achieve it is essential, but that is not the only important thing, follow these 5 steps and start changing your financial life now.

(1. How to keep track of expenses

Obtaining money costs, but once it is in your account, it is spent quickly, right? The first step you must take to save is to know in detail how you spend your money and control it.

If you do not know what you are spending the money on, it is very difficult for you to start saving. For this reason it is important that for at least one or two months you write down all your expenses in an excel sheet.

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If you are more technological, there are several applications that allow you to keep track of all your expenses.

Once you have control of all your expenses in a month, you can organize them by categories and thus be able to have an overview and order them by priority. in this way you will be able to eliminate unnecessary expenses.

(2. Establish savings priorities

Everything is based on priorities, which for some may be a priority, for others not. But if all expenses are considered priorities, it will be impossible to start saving. You should think if you were to lose your job right now, what expenses could you cut in order to survive? If you can do it without work, you can also do it to save.

If you want you should not eliminate all the expenses that are not considered important at the same time, you can start small and you will see the changes in your bank account.

Of course, it is not about eliminating all the little pleasures that you give yourself and living poorly, but about moderating expenses and living according to your earnings.

(3. Define a household budget

As we explained previously, controlling your expenses is essential to start saving. But you must take into account when you should do it, if you just start to control your expenses you make a budget this will not be entirely real. This makes it very difficult to meet it and therefore you do not achieve your goal of saving.

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For this reason, when you already have a clear idea of ​​your expenses and have managed to control everything you spend for a while, it is time to make your household budget.

(4. Set a spending limit for tastes

To save it is not necessary that you stop indulging yourself, quite the contrary, you must specify a sum of money for this purpose adjusting it to your reality. The best way to enjoy your tastes is to avoid improvising and having them included in the budget. Thanks to this you will avoid having regrets and will not affect your savings.

(5. Set a spending limit for your tastes

When we say keep your saved money “Under seven keys” it means that you have it well saved. When we are saving it is difficult to resist the temptation to spend on something that is not in your budget.

That is why it is best that you have it in a safe place and that it is not so easy to access it. Another alternative you have is to keep it in a bank and in a special type of account for that you must know the Types of Credit and Debit cards

How can I save money if I live paycheck to paycheck?

How to save money when you are broke

Use these tips to save money and not die trying and you can take better control of your personal expenses in your daily life and not die trying.

(1. Set savings goals

One of the best ways to save money is to visualize what you are saving for. If you need motivation, set savings goals along with a timeline to facilitate savings. Do you want a dream vacation? Now that you have a goal and you know what you will need to save each month to achieve it.

(2. Pay yourself a monthly payment

Set up an automatic debit from your payroll account to your savings account every payday. So you can save automatically.

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(3. Save on utilities

Save as much as you can on water, electricity, and other services. In the long term, this will not only help you save, it will also help the planet.

(4. Take your homemade food to work

Bringing your own food to work will help you save since you will not have to buy food at every lunch, which in the long run will turn into a great savings.

(5. Wait to make the decision

Before buying unnecessary things, think with a cool head before making a decision. Analyze the advantages and disadvantages of your purchase and thus you can determine if the expense is really necessary.

Importance of saving money and budgeting

How to save money when you are broke

Regarding savings, education is very simple: economic security gives peace of mind. With savings we can access that economic security that will guarantee us the fulfillment of our goals, the ability to face emergencies or live peacefully in our retirement.

Here are 5 reasons why you should start saving right now .

(1. Tranquility

As we have already said before, having money saved gives you the peace of mind that you have a fund for any situation that may arise, be it an emergency or the possibility of investing in a business.

(2. Emergency fund

The future is full of uncertainties. You never know what unexpected and emergency expenses will come knocking on your door. An accident or sudden hospitalization of any family member, a job loss, a broken roof, etc. Having savings allows you to face any situation that may arise.

(3. For retirement

Most of us will need extra savings to live our same lifestyle when it comes time to retire. Therefore, it is best to start planning these savings from a young age to have good support during retirement.

(4. Education

A good education is an investment in a better future. The costs of public and private education are increasing every year and it is becoming increasingly difficult to meet these demands. If you have college goals, you will also need big funds. So, start saving for your dream today.

(5. Remember that saving does not mean reducing your necessary expenses.

Rather, avoid such costs that are not really important, such as reducing the number of dinners or visits to the movies, and always keep in mind the importance of saving money for your future.

That’s it on how to save money when you are broke. Now that you have tools to first save money, prevent and improve your finances, do not throw them on deaf ears, better put them into practice and you will see that after a few months you will no longer be snapping your fingers.

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