How To Save Money On A Micro Budget: A Practical Step-by-Step Guide

Key Takeaways



Free budgeting app that budgets for you

Micro Budget

Financial plans that are extremely tight with not much money leftover or saved.

Fixed expense

An expense (often a bill) that stays the same every month.


One of the most important things a person can do is save money. The more money you have in savings, the more options you'll have for when life throws you a curveball. For example, if something goes wrong with your car and it needs to be fixed or replaced, having some cash set aside means that you don't have to go into debt paying for it out-of-pocket. But saving money isn't just about having an emergency fund: It's also about living well within your means so that you can afford things like vacations or college education without going into debt. And there are plenty of ways to save money! Here are some practical tips for saving on a micro budget (under $5K/month) that anyone can use:

The first step is to create a budget

This can be done in a variety of ways, but the easiest way is with online tools that will help you track your spending and set goals for how much money you want to save each month.

The second step is to stick with it! Once you've created and implemented your budget, stick to it as closely as possible. If there are any changes or deviations from the plan (such as an emergency), make sure those changes are accounted for in future months' budgets so that they don't affect overall savings goals.

Try to stop spending money on things you don't need

  • Stop buying things you don't need.
  • Stop eating out.
  • Stop buying new clothes.
  • Stop buying new food and drink, unless it's something you really want to eat/drink (e.g., if you like Thai food).
  • Avoid buying new technology unless it will genuinely improve your quality of life or work in some way (e.g., an app that will save time).
  • Don't buy entertainment--books, movies, video games--unless they're something special that won't be available anywhere else anytime soon (i.e., if there's a book on a topic that interests me but I can only get it from Amazon Prime).

Cut back on eating out

How much do you spend on eating out? What would you rather do with that money? How can you save money on food, such as shopping at discount stores or using coupons.

Look at your utility bills and see where you can cut costs there

Now that you've looked at your spending habits and found ways to cut back, it's time to take a look at your utility bills.

  • Check your bills and other fixed expenses for errors. Are there any mistakes? If so, it is worth calling up the company and asking them to fix it immediately. This can save you money every month as well as give you peace of mind knowing that everything has been paid in full.
  • Think about whether you can switch providers or get a better deal elsewhere - this applies especially if you have been with the same provider for a long time and are on an expensive plan with high fees (for example mobile phone contracts). Just by switching providers or renegotiating deals with existing ones could save hundreds per year - which will add up over time!
  • Use the Mooch app to budget for your recurring bills ahead of time. It's free to use and you earn cash bonuses just for sticking to your budget every month!

Shrink your wardrobe by getting rid of stuff that doesn't fit, is worn out or is just plain ugly, then donate it to charity

  • Donate clothes to charity. You can donate your gently used clothing to a local thrift store or homeless shelter.
  • Sell them on Poshmark, Curtsy or eBay. If you're not in need of cash, try giving away your unwanted items on websites like your local Buy Nothing group on Facebook or Craigslist.
  • Pass them along to friends and family members who may be able to use them (or trade). If someone asks me if they can have my old t-shirt, I'll usually say yes--I don't see any reason why not! It's just a shirt after all... but if it doesn't fit their style or personality then maybe do consider this option instead of selling it online because then at least someone else gets some use out of what would otherwise be waste material sitting around collecting dust somewhere in our homes."

Stop buying new food and drink

  • Buy in bulk. Buying food and drink in bulk is one of the best ways to save money on a micro budget. You can usually get a discount for buying large quantities, and if you store your purchases properly, it's possible for them to last longer than if you bought smaller packages or individual items at the grocery store.
  • Make your own food. If you have time and skills for cooking, making your own meals can be an easy way to reduce costs--you'll know exactly what ingredients are going into them (and how much), plus they'll probably taste better than anything from a restaurant or fast food chain! Just make sure that whatever recipe(s) work best work well enough before making large batches of them because otherwise this could end up costing more than buying prepared foods would have done instead...
  • Buy discounted food/drink items online through discount stores like Amazon Pantry where prices vary depending upon demand levels etc., but will always be cheaper than supermarkets due to economies of scale."

Think about what kinds of DIY projects you can do, such as making your own cleaning products or gardening tools, to help save cash in other areas of your life, too

You can also use your DIY skills to save money in other areas of your life. For example, if you're looking for ways to cut back on spending and save more money, try making your own cleaning products or gardening tools instead of buying them at the store. You'll get the same results without spending any extra cash!

DIY projects can be fun and they can help you learn new skills--and they may even help you reach some goals that are important to you (such as becoming more self-sufficient).

For many people, saving money is a daily pursuit, but it's worth it because it helps people get closer to their goals like affording college or buying a home

In today's world, saving money is a daily pursuit. For many people, saving money is a necessity because it helps them reach their goals like affording college or buying a home. Saving money can be difficult at first, but with time and practice it can become second nature. The key to being successful at saving money is learning how to do so in ways that don't make your life miserable or cause you stress every day. Our Mooch app makes saving money automatic by automating your monthly expense and savings goals for you.


So, how can you save money? The first step is to create a budget. Try to stop spending money on things you don't need, cut back on eating out, look at your utility bills and see where you can cut costs there; shrink your wardrobe by getting rid of stuff that doesn't fit or is worn out; stop buying new food and drink; think about what kinds of DIY projects (like making your own cleaning products) could help save cash in other areas of life too!

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