Having a budget is the key to living within your means and saving money. A realistic budget should include all your expenses, including rent or mortgage payments, food costs, utilities, insurance premiums, and more. Of course, this list can quickly become daunting if you are trying to cut back on many of these expenses at once. How much money should you save each month? Luckily for you, below are some tips for saving money that are perfect for those looking on a tight budget.

Give up smoking to save money

Smoking can be a habit that is hard to break. It can also be expensive and it is no secret that cigarettes have become more expensive over time. So, if you smoke, maybe it’s time to give up the habit.

You might think that giving up smoking would mean spending more money on other things but there are many ways in which giving up smoking will allow you to save money on your monthly expenses.

Review and cut back on your cell phone plan

• You can start by reviewing your cell phone plan. If you already have a traditional contract, it’s time to consider switching up and getting a cheaper or prepaid plan instead.
• If you’re still paying for an expensive family plan but don’t need the extra minutes, think about cutting back. You might find that two cheaper plans are better than one expensive one—especially if both parties will use the same carrier anyway!
• If you want to ditch your landline entirely, consider adding a smartphone with unlimited data instead.

Avoid impulse purchases by using cash only

Impulse purchases can add up to a lot of money, so limiting them is important. The easiest way to do this is by using cash only. By having only physical money in your wallet, you’ll be less likely to make rash decisions about spending money on the things that you don’t need.

Additionally, paying with cash gives you a stronger sense of what your money is worth because there are no credit card bills or interest charges that keep adding up over time.

Cook at home more often rather than eating out at restaurants

While it’s nice to be able to eat out, doing so can be expensive. In fact, it’s been estimated that eating at home is cheaper than eating out by 25%. But that doesn’t mean you should give up on restaurants altogether. Just plan ahead and keep a check on the cost of going out when doing your grocery shopping. Then you’ll know exactly what you’re spending and won’t overspend because you forgot about one meal.

Pay off your credit cards every month, or call the credit card company for lower rates

When you pay off your credit cards every month, you avoid interest charges. This is a simple way to save money on monthly expenses and keep your credit score high. If you don’t pay off the balance each month, the interest will add up quickly and make it harder for you to pay off all of your purchases.

Saving money is essential because “Without a solid contingency fund, any financial set-back– such as a job layoff, large medical bill, or costly home or car repair–can throw you off balance and cause you to rely on high interest credit cards,” as stated by experts SoFi.

By following these steps, you’ll be well on your way to saving money and enjoying life!