Turning Cents Into Dollars: How to Save Money on a Tight Budget

Key takeaways

• The U.S. economy is reducing inflation, but new hawkish comments from the Fed chair indicate we haven’t seen the last of rate rises
• Saving money on a budget can be though — starting with expense tracking and automated savings is a good place to start
• If you’ve cut everything already, boosting your income through AI investing can help

Did you know you can use AI to boost your savings? Q.ai’s Foundation Kits use a state-of-the-art AI algorithm to trawl through data and predict high-performing assets each week. The Kits help you to invest like a pro without the upfront work and catch the upside.

Download Q.ai today for access to AI-powered investment strategies.

What’s happening with the economy?

Sticky inflation is the bane of almost every major central bank’s life, but the U.S. is actually doing the best of the developed economies. For May, the U.S. consumer price index (CPI) report saw headline inflation rise at 4%, a sharp drop from 4.9% in April. Core inflation, which strips out volatile energy and food prices, fell to 5.3% from 5.5% the month before.

New comments from Fed chair Jerome Powell this week confirmed there’s still some way to go in the battle against inflation. Speaking at the ECB Forum on Central Banking, he didn’t rule out consecutive rate rises to tackle core inflation, which could go either way.

This means that borrowing gets more expensive for businesses and households, so it’s more important than ever to clear away debt where possible and build savings.

How to save money on a budget

Track your expenses

In this day and age, there are a million different subscription services that can eat away at your monthly budget. Tracking your spending for a month and seeing where you can cut back can yield some surprisingly effective savings.

It’s not about cutting out everything but the essentials and making your life miserable — more like focusing on whether you need a coffee every day or if that gym membership you don’t use should go.

Automate savings

Once you have more of an idea where your money is going, you can put the difference away by automatically saving a portion of your paycheck. This way, you won’t even miss the money, you don’t need to worry about the admin of putting it away each month and you’re paying yourself first.

Invest with AI

AI investing, like investing platform Q.ai, can help you grow your savings faster. They use artificial intelligence to analyze data and find investment opportunities that fit your financial goals and risk tolerance.

This can be a good way to grow your savings over the long term — even if you’re on a tight budget, investing small, consistent amounts can yield substantial growth over time due to the power of compounding.

The bottom line

Saving money when the budget is already stretched is never easy, but if you’re just starting out with cutting back, tracking your expenses and automating savings is a great place to start. Boosting your income via AI investing is the next step if you can’t reduce it any further.

Q.ai’s Foundation Kits utilize an advanced AI algorithm to sift through data and identify top-performing assets weekly. The Kits focus on various themes, such as tech and global trends, and offer different risk levels to accommodate experienced investors and newcomers.

Download Q.ai today for access to AI-powered investment strategies.