How do you live on a tight budget? A tight budget means there isn’t much to spare at the end of the month. Expenses may equal or be very close to household income. There are varying degrees of a tight budget.

• Necessary expenses take up the majority of or all of your disposable income
• You spend freely leaving little at the end of the month for emergencies or longer term plans

There are really only two solutions to a tight budget:

1. Reduce expenses
2. Earn more money

Tips and tricks to living on a tight budget:

• Keep your necessary expenses (needs) to an absolute minimum
• Keep other purchases (wants) to a minimum
• Shop on sale, with coupons or second hand
• Share expenses
• Use cash, jars, envelopes to manage your spending

Very few Canadians have enough household income that they don’t have to worry at all. How do you keep within your budget?