How To Live On A Tight Budget

By: Financedom

Break Studios Contributing Writer

For many people, the thought of figuring out how to live on a tight budget offers a nightmare-like scenario. No more expensive lattes and designer handbags; no more hand-stitched hiking boots and vacations on azure coasts; no more escargot and private planes. For the rest of us, living on a tight budget is an every day reality—or at least should be. If you are new to the realities of living on a tight budget, here are some tips.

Remember, it's a budget not a guideline. If you truly need to live on a tight budget then you cannot treat the budget like a guideline that is OK to miss. Your budget must be set in stone and you must be committed to it.
If money doesn't come in, it doesn't go out. Avoiding additional, unnecessary expenses like insufficient funds charges are important when living on a tight budget, so make sure to never spend money that you do not actually have.
Learn to differentiate between what you need and what you want. Tight budgets work because they give you very strict practices for the spending of money. That means you can only spend money on those things that you absolutely cannot live without—like food and electricity. The things you want or desire do not generally fit in a tight budget.
Comparison shop. Whether you are buying food, subscribing to a cable service or looking at long distance plans, you must comparison shop before you commit to spending money on a tight budget. If you can save ten percent of everything you spend just by doing a little research and finding it cheaper, then you will have that much more money to use for savings or debt repayment—which could ultimately reduce the amount of time you must spend living on a tight budget.
Know what you can get for free. Did you know you can talk to people long distance for free if you use certain online resources? Did you know that many television shows are free on Hulu.com and the network websites? Knowing all the free resources you can take advantage of will help you save money in your budget and make life on a tight budget seem less restrictive.