Welcome Lykkers! We all know that in challenging financial times, saving money might feel impossible. But there are small, practical steps you can take to build a safety net and improve your finances, even on a limited budget.

Here's a guide to help you save, whether you're managing debt, facing rising costs, or just starting out.

1. Understand Your Spending Patterns

The first step to saving is to know where your money goes. It's easy to lose track of small purchases that add up over time, so start by writing down everything you spend, no matter how small. You can do this by:

Using an app: Apps like Mint, YNAB (You Need A Budget), or even Google Sheets can help you track expenses and categorize spending.

Keeping a spending journal: A notebook or journal where you jot down daily expenses can be a quick and simple way to stay aware.

2. Set Realistic Goals for Savings

Setting a savings goal doesn't mean aiming to put away huge amounts every month. Even saving a few dollars each week makes a difference. Consider starting with a target like $5, $10, or $20 per week. This might seem small, but it builds up over time.

3. Budgeting with the 50/30/20 Rule

The 50/30/20 rule is a flexible and simple way to allocate income:

50% for essentials: This covers things like rent, groceries, utilities, and basic transportation.

30% for wants: Non-essential items like dining out, entertainment, or subscriptions.

20% for savings and debt repayment: This portion is aimed at building your savings and paying down debt.

If your budget is extremely tight, consider adjusting the proportions. Aim to reduce spending on non-essentials while making sure your needs and savings are prioritized.

4. Meal Planning and Cooking at Home

Food is often a major expense, especially if you're eating out regularly. Cooking at home can save you hundreds each month. Here's how to get started:

Plan weekly meals: List simple, budget-friendly meals for the week, and shop with that list. Planning prevents overspending and helps avoid impulse purchases.

Cook in batches: Make meals in larger quantities and freeze leftovers for later. This helps reduce food waste and ensures you always have something ready to eat.

Limit convenience foods: Pre-packaged foods and takeout might be tempting, but they're often more expensive than homemade options.

5. Shop Smart and Find Deals

Take advantage of discounts, cashback rewards, and loyalty programs to make your money stretch further. Look for deals and coupons, and buy in bulk for non-perishables: Items like rice, pasta, and canned goods are cheaper when bought in bulk, use a list.

6. Cut Unnecessary Subscriptions and Bills

Review your monthly subscriptions and services to see if there are any you can pause or cancel. Common areas to review include streaming services, phone and internet plans and gym memberships.

7. Reduce Utility Bills

Reducing your utility bills can help free up extra cash. Here are some tips:

-Unplug electronics when not in use, as they draw power even when turned off.

-Shorten shower times to reduce water and heating costs.

Small changes in everyday habits can lead to noticeable savings on your bills over time.

8. Sell Unused Items

Declutter your home and make some extra cash by selling things you don't need. You can list items on platforms like Facebook Marketplace, eBay, OnLine eXchange and Garage sales.

9. Prioritize Paying Down High-Interest Debt

High-interest debt, like credit card debt, can make it difficult to save. If possible, try to pay more than the minimum on high-interest balances each month to reduce the total interest you pay over time.

Snowball method: Start by paying off the smallest debts first for quick wins.

Avalanche method: Focus on paying down the highest-interest debt first to save more in the long run.

Both methods work well, so choose one that feels motivating and achievable.

10. Seek Community Resources and Financial Help

If you're truly struggling, remember that you're not alone. Many communities offer support for those facing tough financial times. For example, there are food banks, community kitchens, and financial counselling.

11. Stay Motivated with Visual Reminders

Keeping track of your progress can be encouraging, especially when funds are limited. Consider setting up a visual savings goal. You could set up a saving jar or a tracking chart.

We all know that saving money during tough times isn't easy, but every small step you take adds up. By understanding your spending, setting realistic goals, and making small but consistent changes, you'll slowly build a financial cushion.

Remember, it's not about making drastic sacrifices but forming habits that help you take control of your finances over time. Everything over time will always get better we just have to be consistent and passionate in what we are doing.