(MoneyHippo.com) – When you’re living from one paycheck to the next, saving for retirement or emergencies might seem impossible. Yet, you don’t have to put away large sums of money at a time to make progress. Every little bit helps. Here are three ways to work savings into your financial plan, even when money is tight.
- Write it down: Before making room in the budget, you need to know exactly where you stand financially. Write down your income and monthly expenses, then subtract the latter from the former. If you have money left over, allocate that amount to savings. If not, target unnecessary costs you might be able to eliminate to create a surplus.
- Negotiate: Living hand to mouth could mean the budget is full of only the essentials. In that case, contact creditors and ask them about lowering the monthly bill. Sometimes telling them you’re simply trying to cut costs but want to stay with the company is all you need. Most businesses want to retain you as a customer and are willing to negotiate to keep you.
- Bring it in: Assuming the budget expenses are all necessary and you’ve negotiated them down, the next step is to bring in more income to save. Look around the house to see if there’s anything you can sell or pick up a side gig to make some extra cash. Alternatively, you could also ask your current employer for a raise.
Remember, even little steps toward your goals are movements in the right direction.
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