It is possible to save money on a Low income. Some simple changes can do the trick.
We all want to save money, but sometimes we feel that we don’t have enough for our basic needs, let alone save any money. But the best part is that we can save some cash with little changes in our lifestyle.
Spend your money only on your needs, and your budget will care for itself.
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We read news about rich people going bankrupt. Why does this happen? Because their wants grow more extensive than their earning potential, they don’t make wise decisions about the money.
They think that money will always come to them. But this is not the case. Everybody has a lifespan, and earning lifespan is shorter.
The best time to make wise decisions about money is now. Now is the time when you have money coming to your accounts. Don’t spend it on things you don’t need.
You will blow your money if you ignore your shopping. And if money is not taken care of, it just flies (without wings)
How to grow your wealth by tracking your spending
You can earn extra money to build your savings if you feel like you are on a very tight budget. Start from the Emergency fund. It will give you a cushion and a sense of security. In the meantime, you can start doing some surveys to earn money quickly.
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Lifestyle changes you need to save money on low income
1. Open a savings account in the bank.
Wherever you have, whatever you do, the first step of saving money is to open a savings account. It will help you put any saved money on the side. Don’t think that you will save after spending on everything. Instead, save first and then spend.
Automate your savings and plan according to your minimum savings. Make a goal for savings and plan your saving according to that. Bank accounts have this facility; if you do internet banking, you can set up this yourself.
2. Tackle high-interest bad debt first
If you have high-interest rate debt, before saving any penny, you should pay off that debt. It will reduce your monthly payments to spare some money for saving.
Repaying the debt can have a significant impact on your financial condition. Paying off any high-interest rate debt gives you money to save. I know it is difficult to pay off debt when you are already on a meager income. However, you can manage this by earning more.
You can start some side hustle according to your skills, hobbies, or expertise, or you can start taking online surveys.
I always make around $250 month in a month from survey companies. Of course, surveys will not make you rich but when you are already on a meager income, earning $250 each month makes a big difference.
2. Save on clothes and dresses
Saving on clothes is so important. Don’t buy clothes on impulse. Only purchase when needed. Otherwise, you will increase the load of your wardrobe. Also don’t buy too expensive clothes because after some time most of us get bored with old clothes.
It is better to buy clothes while needed and under budget. Money saved in your bank account will give you more happiness than the clothes in your closet, guaranteed. You can also use cashback sites to make your purchases.
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How to save money on clothes and dresses ( don’t miss it )
3. Save on home loans
Shop for home loans. And go with the lowest interest rate. Sometimes you have to pay for other services even if you get lower interest rates. So it is better to pay attention to all the aspects of home loans.
Home Insurance
Shop for insurance on the home. Go to different insurance agencies and pick the one that will give you the best deal. Sometimes insurance is costly, and the extra benefits they charge us are not required.
You can save on home insurance if you shop for it with a saving mindset. We have a perfect plan from our mortgage provider which covers many things. However, when I compared it to others, I felt it was much cheaper than others.
4. Negotiate better interest rates
Talk to financial institutions you are a customer with for any reduction in interest rates, as this could save you some money. Do your homework, give them a call, and tell them that you think the interest rate you are paying is much higher than you should.
Ask for a lower interest rate; if they refuse, talk to their managers or if nothing happens, ask for the reason.
If they tell you that your credit score is not good enough, you should try to improve it again. Or try after your situation improves after some time.
5. Save on utilities
It is too important to save on utility bills. Prices for electricity, gas, and water have skyrocketed. It is essential to pay attention while using these. Never keep your lights on. Always keep your plugs out of sockets while not in use. Make it a habit to check lights or plugs and switch them off while going out.
Never keep microwave, laptop, TV sets, and other gadgets on while not in use. It feels like very little but will add to significant savings in a year. Always check for switched-on plugs while going out.
Simple and actionable tips to save money on Electricity
Save on water
Yes, water is costly too. It is becoming a scarce commodity and is required for life. So instead of wasting it without thinking, save it. Water-saving will save the earth as well as money. Do your laundry once a week. Don’t throw your clothes in the laundry bag if you can wear them again.
Take a two-minute shower. I have seen my mother how fast she is while having a shower. I would see her going and then coming just in a few minutes. Sometimes I have to ask her whether she has taken a shower or has to go yet. So one more money-saving tactic which I learned from her.
Save on gas bills
Use gas conservatively. Cook in bulk, and if your heating system is on gas, keep the thermostat lower and keep your house insulated adequately.
How to save money on gas bills for sure
6. Start earning more to get out of debt when you are broke
This is the most crucial step if you are in a very tight financial position. The Internet has made it possible to earn some money as a side hustle even if you don’t want to go out to work more. Start doing surveys because it is straightforward to make some money. And if you are on a tight budget, earning extra money gives you some money to make extra money. I am building my emergency fund from the extra money I get from surveys.
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7. Buy used things
Sometimes we don’t feel comfortable with used things. But I have seen some people who save a lot on used items. Especially furniture, cars, and gadgets. When my old laptop broke, I bought a refurbished hp Elite book for 350 dollars. And believe me, I am more than happy with this decision.
Otherwise, I had to shell out maybe about 2000 dollars. And it is working nicely. I have had this for two years. Even if it breaks now, I will not have any remorse or regret. My earlier PC stopped working after some time.
Cars are expensive too and will drain your wallet, but sometimes you can get an excellent deal if you pay attention.
8. Pay your credit cards
Credit cards are so enticing that if you fall for them, they will drain your money, and you will not even notice. Only your account would be empty. The best practice is to avoid credit cards at each cost. If you have them, either keep them in a safe place or if you use them wisely.
Never take the money out of the credit card account. It costs a lot. If you want to use it, use it only for spending and pay them every week. I learned this from my broker.
He told us that he pays his credit card every Friday night. He said that he checks the spending on his credit card weekly and spends it regularly. This is a good strategy.
12 tips to pay off your credit cards
9. Health Insurance
Even with private health insurance, it is good to go to public hospitals. Private hospitals will leave you vast amounts of money even after payments from insurance companies.
10. Watch movies at home
Instead of watching movies, it is better to watch them at home. If you go out for a movie, it costs you nearly 60 dollars for two people. ( Just an estimate according to my city) on weekends. Either watch it on weekdays.
Tickets cost less on weekdays. And go after having a meal. You will save money on popcorn or cold drinks. Take water with you, and you will save a lot.
I didn’t watch any movie in the theatre for long, but I didn’t miss it.
11. Make your coffee at home
It is better to make your coffee at home. Coffee is costly. If you buy a small cup of coffee every day, it will cost you around 2.50 dollars daily ( an estimate), and if you buy 20 cups in a month, it will turn out to be 50 dollars and 600 dollars a year. A lot of money. At home, your coffee will not be this costly.
12. Cook at home
Cooking home meals is healthy and also cost-effective. Think about how restaurant owners have to make money after shelling out the salaries of all the staff.
Customers have to pay for all this. So the best strategy is, don’t go out often, and instead of buying lunch every day from outside, take homemade lunch with you.
9 actionable hacks to save on groceries each month
13. Sell your extra stuff
Sell your extra stuff on garage sales or websites like eBay or Gumtree. Gumtree is good for local selling. For example, one of my friends recently sold a toy car she got for her daughter’s birthday.
She got two same gifts. She sold one. It was new and sold at a reduced price from the store. It was an expensive toy, and she made good money.
14. Dream about saving
YES, dream about saving. Have savings always in your mind. You spend a lot of waking time earning money. Either in the jobs you don’t like, or you spend time growing your small business. It is better to save money than give it to somebody buying things you will never use.
Having hard-earned money with you or investing in something risk-free is the best practice. Once you make saving money your dream and become into the habit of saving money, your life will be better. Because when you save money, you always have a sense of security and peace.
15. Make a saving attitude
This is the most important. Because if you do not change your attitude about money, it will be tough to save. When I think about my parents, I get the picture. My father was never into money-saving. But my mother saved every penny she could.
I never saw a lot of stuff that is not required at home. She never bought too many clothes or other things which are not necessary. However, they provided us with the best education.
Their whole life, my father, was a sole earner. Also, he had a spending attitude. Despite this, my mother could save money for the house, and they bought a property. It was possible only due to her saving attitude.
Points to remember
- Open a saving account
- Save on utilities
- Sell your clutter
- Dream of saving money
- Have a money-saving attitude
- Don’t keep credit cards or pay on time
- Save on home loans and home insurance
If you save money and have some tricks, please share them in the comments. I will be pleased to know.
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