For many people—including a lot of Millennials and Gen Z—the idea of saving big may feel impossible in the face of rising costs of living, student loan debt, and stagnant wages. But even if you’re financially strapped, small changes can make a big difference. Building a budget that fits your reality can help you gain control of your money and ease financial stress, no matter how tight things are.
Here are 10 simple, realistic budgeting tips to help you save and get ahead, even when finances are tight.
1. Start Where You Are: Track Your Expenses Without Judgment
The first step to saving—whether you’re financially strapped or not—is to understand where your money is going. The key is to track your expenses, and do so without judgment. A good way to keep yourself honest is using a free app like Mint to record your transactions. Or, if you’re old school, simply jot down every purchase in your phone’s notes for each month. Don’t worry about changing your habits right away—just focus on getting into the habit of having an honest picture of your spending.
Pro Tip: Financial stress is real, but awareness is empowering. Once you know where your money is going, you can find ways to tweak it in a way that fits your lifestyle. (You might find yourself cutting things preemptively rather than admit your guilty pleasures, too—and that’s totally fine! Just make sure you actually cut them; otherwise, they should go on your expense sheet.)
2. Prioritize Needs Over Wants: Focus on Survival First
Focusing on the essentials first is just common sense. But in tough financial situations, it is critical. Start by identifying your non-negotiables—things like rent, groceries, transportation, and utilities. Once those are covered, any leftover funds can go toward small savings (or paying off debt first). It’s not about cutting out all fun, but rather getting clear on what’s necessary versus what’s optional. Once you know what’s necessary, you’ll be able to decide what optional activities are still within your budget.
Pro Tip: A simple rule is the 80/20 method: Dedicate 80% of your income to absolute essentials and leave 20% for flexibility, including small pleasures.
3. Use Cash Envelopes for Better Control
Aren’t tech savvy (or a little too tech savvy)? Fear not! Whether technology isn’t your forte or you just find it too easy to 1-click buy when you’re surfing online, if you struggle with overspending, consider using the cash envelope system. Set aside physical cash for categories like groceries, transportation, and entertainment. When the envelope is empty, you stop spending in that category for the month. This old-school method is simple but effective for people who find it hard to manage digital money.
Pro Tip: It’s definitely the digital era now, so if physical cash isn’t practical, or you don’t feel comfortable handling so much of it, consider a prepaid card that limits you to a set amount in certain spending categories. It’s functionally the same thing!
4. Find Room for Micro-Saving
When your budget is tight, saving large amounts may feel unrealistic. That’s okay! Instead, start with micro-saving. Apps like Chime or Digit allow you to save small amounts of spare change from everyday purchases or round up transactions to the nearest dollar. Even a few dollars a week can add up over time, giving you a cushion for emergencies.
Pro Tip: Saving as little as $5 per week can add up to over $250 a year. It may not seem like much, but it’s a step toward financial security, and can be a lifesaver on a rainy day.
5. Use Government and Community Resources
If things are really tight, there’s no shame in using government and community resources to stretch your budget. Sign up for food stamps, and check out local food pantries, clothing swaps, or community fridges that can help reduce basic living costs. Many cities also have programs for subsidized transportation or housing assistance.
Pro Tip: Apps like Too Good To Go help you get discounted food from restaurants at the end of the day. It’s a great way to save on meals while reducing food waste, and you can find a lot of tasty surprises!
6. Cut Subscription Services
We all have subscription services we forget about or barely use. Go through your monthly subscriptions and cancel any you don’t really need. For those you want to keep, consider lower-tiered plans with more ads but the same content. With streaming services like Netflix, Hulu, and Spotify cracking down on password sharing, this is a good time to rediscover the often extensive digital resources local libraries offer, too!
Pro Tip: Use apps like Truebill or Rocket Money to help identify and cancel unwanted subscriptions automatically.
7. Meal Prep for Cheap and Easy Meals
Food is an important expense in any budget. With a little planning, you can drastically cut down on grocery and takeout costs. Meal prepping inexpensive meals like rice, beans, pasta, and frozen veggies can stretch your food budget without sacrificing nutrition. Planning meals for the week ahead and shopping based on sales or discounts can help keep food costs manageable. As an added bonus, home-cooked meals are often healthier than takeout, and it never hurts to improve your health!
Pro Tip: Cook in bulk! Making large batches and freezing leftovers can help you save time and money. Try planning meals that use similar ingredients to avoid food waste.
8. Find Small Ways to Earn Extra Income
If your budget feels too tight, finding even small ways to increase your income can be a game changer. Consider side gigs like dog walking, babysitting, freelance work, or selling unused items online. Apps like TaskRabbit, Fiverr, and OfferUp make it easy to find part-time gigs that fit your schedule.
Pro Tip: Even if you’re working full-time, finding a side hustle that brings in an extra $50-$100 a month can go directly into savings or paying down debt.
9. Build an Emergency Fund Slowly
An emergency fund can seem impossible when you’re living paycheck to paycheck, but it’s important to start small. Even setting aside $10 a month into a separate savings account can make a difference. Over time, these small contributions can grow into a financial buffer that can help prevent further debt.
Pro Tip: Set up automatic transfers into a high-yield savings account that pays interest, so your money grows even faster.
10. Reevaluate Your Budget Regularly (Without Guilt)
Budgets should never be set in stone. They’re living, breathing tools that need to change with your circumstances. Make a habit of checking your budget at least once a month to adjust for unexpected expenses or shifts in income. Don’t beat yourself up if you overspend—adjust, recalibrate, and keep moving forward.
Pro Tip: Reevaluate your budget after major life events like getting a raise, losing a job, or facing medical bills. The key is to be flexible and make your budget work for you, not against you.
Final Thoughts: Small Changes, Big Impact
Whether you’re a big spender or you’re financially strapped, it’s easy to feel like saving money is out of reach. But even in tough times, small, consistent changes to your budgeting habits can make a world of difference. The key is to start where you are, prioritize what matters, and be kind to yourself along the way. As you build better habits, you’ll find that every dollar saved brings you closer to your financial goals!
