Wonder how you can save $500 with no money? The thought of it may seem impossible, but believe it or not, there are ways to save up without having any extra cash available. We often get stuck in spending habits and find ourselves living paycheck to paycheck without making progress towards our savings goals.
Sometimes even small changes can be enough to make a difference!
I’ll be talking about five simple strategies that anyone can use regardless of their current financial situation to help them start saving for the future.
So if you’re ready for major financial change and want to learn how to easily accomplish your dream of saving $500 in no time, read on!
Below are steps to save $500 when you have money:
1. Create a realistic budget
To create a realistic budget and save $500 with no money, first start by following an established guideline like the 50/30/20 rule to split your income between needs, wants, and savings.
Then, look for ways to lower your monthly bills and eliminate bank fees. Consider refinancing your auto loan or mortgage and lowering your student loans if possible.
Prorate your utilities and bundle services to reduce costs. Finally, selling what you don’t need can help you reach your goal of saving $500 with no money.
2. Cut $10 a Month
Cutting $10 a month is an easy way to make a big difference in your savings. It doesn’t have to be a huge sacrifice either; you could start by cutting down on your coffee, take-out, and other small expenditures.
Your savings could add up quickly if you put the money into a savings account every month or use it to pay off debt faster.
You can also consider cutting unnecessary services, such as cable or satellite TV, and switching to streaming services.
3. Turn Your Hobby into an Income
If you have a hobby or passion that you enjoy, why not make some extra money on the side by turning it into an income? With a little creativity and effort, you can monetize your hobbies and earn some extra cash from them.
For example, if you like to cook, you can start a catering business or offer meal delivery services. If you like photography, you could start a photography business or sell stock photos online.
And if you’re crafty, you can make and sell handmade items online. With the right strategies, anyone can make a living from their hobbies and passions.
4. Eliminate Bank Fees
One great way to save money and start working towards your goal of $500 is to eliminate bank fees. Look into your banking accounts and see if any hidden fees or charges are being charged.
If so, it is time to shop around for a new bank that doesn’t charge these fees. Additionally, you can negotiate with your current bank to lower or waive these fees. This is an easy way to save some money in the long run.
5. Lower Your Monthly Bills
Lowering your monthly bills can help you save $500 with no money. There are several ways you can do this, including:
- using a cash-back reward credit card for all spending
- making a realistic budget
- auditing your subscriptions
- skipping takeout once a week
- canceling one subscription service
- shopping around for lower prices on utilities and other services
- making your own cleaning products
- using a company like Billshark to negotiate lower rates
You can also put more money in your savings by selling items you don’t need or turning your hobby into an income. By taking advantage of these tips, you can easily reduce your monthly expenses and start saving money.
6. Refinance Your Auto Loan or Mortgage
Refinancing your auto loan or mortgage can save up to $500 with no money. It’s important to have realistic expectations and understand the risks of refinancing, such as closing costs and the potential for a higher interest rate. Keep in mind that with interest rate as high as they this might not work for everyone.
If you’re able to get a lower interest rate than your current one, you may be able to pay off your loan faster or lower your monthly payments.
Shopping around for a better rate is key to finding the best deal. Alternatively, you can use cash-out refinancing to access the equity in your home and use that money for other expenses.
7. Lower Your Student Loans
If you have student loans, lower your interest rate to save money. Bank of America states that its debt relief program results in a median savings of over $150 per month in student loan repayment. You can also set up automatic payments to make sure your loan payments are always on time.
Also, consider creating rules for yourself, like putting any $5 or $10 bills you receive towards your loans and using money-saving apps, like Digit, to help you save. These small steps will help you keep more of the money you earn and save for retirement or other goals.
8. Prorate Your Utilities
By prorating your utilities, you can save up to 15 percent on your heating bill, or about $140, by turning your thermostat down 10 to 15 degrees for 8 hours. Big and small changes in your energy usage can help you save hundreds annually on your electric bill.
Plugging any insulation leaks in your home is also a great way to save money and reduce energy consumption.
You should also consider using most of your utilities during off-peak hours for lower rates. All these steps combined can help you achieve your goal of saving $500 with no money.
9. Bundle Your Services
Bundling your services is one way to save money on monthly. Look into combining car insurance policies with the same provider, or check if you qualify for any discounts if you pay your bills on time. Reducing your costs each month is a great way to save $500 with no money.
10. Sell What You Don’t Need
Bringing a little more money in can always boost your savings! Go through your closets and list stuff on eBay or Craigslist. I know you all have at least one item that you can sell.
You can also take surveys, proofread documents, or even start a side hustle like blogging to bring in the extra money. Don’t worry if you don’t have a large sum of money to save right away, start small and work your way up!