How To Save Money When You're Broke

To get some extra cash, you don't have to win the lottery. Even small changes can lead to significant savings. how to save money when you're broke.

You're not alone if you struggle to save just a few dollars each month. About a quarter of Americans say they have less than $1,000 to cover an emergency according to a Prudential survey of full-time employees.

Saving for big goals such as buying a house or car may seem impossible due to student debt, rent, cell phone bills, and other expenses like rent.

You're not alone if you struggle to save just a few dollars each month. About a quarter of Americans say they have less than $1,000 to cover an emergency according to a Prudential survey of full-time employees.

Saving for big goals such as buying a house or car may seem impossible due to student debt, rent, cell phone bills, and other expenses like rent.

Your social life does not have to go away, but it will change. Zina Kumok, the personal finance blogger behind Conscious Coins recalls how during the recession, "I would try to skip going out to eat or going out to the bars and stuff.

It was much easier to just go to someone's house with a six-pack of water and bring something.

Do friends want brunch? Instead of spending $20+ at a restaurant, host a potluck. If your friends insist on going to bars, only going during discounted happy hours.

Save money with autopilot

Automatic withdrawals are a great way to save money. You can either transfer money directly from your checking account to your savings, or use an app such as Digit or Acorns. Ariel Davis, a New York editor, said that Digit monitors my spending and then saves some money.

Acorns, on the other hand, takes a set amount of money out of your account each week, then invests it into mutual funds, stocks or electronically-traded funds of your choice.

Be transparent about your spending

You need to look closely at your spending to see if you are able to increase your savings or 401(k). That means writing down everything you pay for each day.

This can be done with a simple spreadsheet such as Google Sheets, or your phone's Notes app. Mint, Personal Capital and You Need a Budget are apps that can help you track expenses. They link to your bank accounts and credit cards.

You might decide to cut down by 25% if you look at how much clothes you are spending on clothing in a month.

You may also decide to rent a cheaper apartment in order to cut down on rent. There are many ways to go. You have to decide what priorities you want to set and where you're most willing (and motivated) to cut back. Are you still in college check out there awesome how you can save money in college.

Tackle your debt

People can't save because they make too many debt payments. While some debt, like student loans, is inevitable, knocking out high-interest credit card debt should be a priority.

If you have a balance of $5,800 on your cards and an average interest rate of 17 percent per year, you could easily end up paying $1,000 in interest each year.

You could pay less interest by getting rid of your debt or putting a portion into savings. Roger Ma, a certified financial planner, recommends that you put any extra money toward the credit card with a higher interest rate first.

But if you think you'll get more satisfaction from knocking off at least one bill altogether, put extra money (that you've saved from bringing your lunch to work and cancelling that gym membership) toward the card with the lowest balance to start a snowball effect.

You can try a "no spend" month

Here's a powerful move: "Only spend money for bills and (true!) necessities for 30 days to get all your daily habits under control (and save money! J. Money, the personal finance expert behind the blog Budgets Are Sexy, recommends.

It is possible to reduce your spending by understanding the difference between needs and wants. You don't have to be deprived every month. It's important to identify where you can cut back if your goal is big like saving for a vacation or reducing credit card debt.

Make sure your money is safe

There are three options for where you can put the money you have saved: an interest-earning savings plan, a 401k with your employer, or an IRA that you set up.

Savings accounts are best for short-term savings, as well as an emergency fund to cover unexpected costs. Thanks to rising interest rates you can earn about two percent annual interest at some banks.

You can save money on retirement by using your company's 401(k). Not only will you be able to have your paycheck deducted, but your company may also match your contributions.

If you don't have a retirement plan sponsored by your employer, IRAs can work for you. Fidelity and Vanguard offer IRAs. You can also transfer funds from your checking accounts into your IRA.

Remember that every dollar you save by bringing your lunch or buying a dress next week is a gift for the future. Liou says that all of this stuff adds up. It compounds over time when you save it and then invest it.