Almost all of us need to save money to do or get something. Some of us want to buy a house or travel abroad. However, some of you may ask, how can I save money with a low income?
Having a low income often makes you feel like living paycheck to paycheck. Let’s be honest; saving money when you are on a tight budget may be tough. But it is doable.
How Can I Save Money with A Low Income?
How to save for a house on a low income? Can I save for a super fun vacation?
If you are trying to save money on a low income, don’t think it’s a burden. Instead, start to think about it as an interesting challenge. Here are 8 powerful tips that you can follow.
1. Pay Off All Your Debts
If you still have some debts, make it a priority to pay them off. Student loans, payday loans, vehicle loans, credit cards; you should track all of them. Make a list of which loan to be paid off first.
Tackle high-interest debt first. After that, pay the rest of the debts one by one. As you go forward, try to live a debt-free life to make it easier for you to save money.
2. Pay All the Bills on Time
Do not hesitate to pay all the bills on time, as soon as you receive your salary. You will have to pay them anyway, so there is no point in delaying. If you don’t pay bills on time, there is a risk of forgetting them, and you have to pay an unnecessary fine.
3. Save Money Before You Start Spending
Among many living on low-income tips, this step may look simple but very significant.
After receiving a salary, create a monthly budget. Calculate your income, list your expenses, set a saving goal, and decide how much you will save every month.
Since you have a low income, do not aggressively decide to save a high amount of money. Saving a little money consistently is better than saving much once and forget to do it the following months. Just make sure that after saving money, don’t take it out for any reason before reaching your goal.
After you know the amount of money that you plan to save every month, do it routinely. Before you start spending, spare the money and save it.
4. Cut Down Big Expenses
After learning about how to create a monthly budget, you need to track all the expenses. During this process, you will know the biggest expenses every month.
If you have a high housing cost, try to downsize the home that you rent. If you spend much on fuel, try to use public transportation more often. Cutting big expenses is more significant rather than cutting back one dollar or two from small ones.
5. Change the Way You Eat
One of the practical ways to save money is by being careful in choosing the way you eat. Now you can check the food bill so far. Do you think you have spent too much eating at restaurants?
Eating food at restaurants is convenient, indeed. However, eating out in a restaurant can cost you three times or more than cooking and eating at home.
So, how can I save money with a low income? Try to do meal planning. You can have delicious meals without spending too much.
6. Follow the 30-Day Rule Challenge
If you are an impulsive buyer who tries to find how to save money from salary, here is what you can do. Challenge yourself to follow the 30-day rule.
The rule asks you to save the money that you are going to spend on an impulse buy. Save it separately and wait for 30 days. After 30 days, if you still want to buy it, go ahead.
If you do not want to buy it anymore, or even forget it after 30 days, then you can save it in your saving account.
7. Get Free (or Discounted) Entertainment and Facilities
Is saving money means no entertainment? Of course not. You can have your entertainment, but more mindfully
Stop your cable TV subscription, go to the cinemas, and go out for a fun dinner. Instead, go for a hike, take a walk to a park, watch free movies at home, or host dinner parties.
8. Start a Side Job
After all, if you think your salary is not enough, start or find a side job. Make sure you like what you choose so that you always have the energy to do it.
The Bottom Line
Everyone can save money. Don’t stop at the question: how can I save money with a low income? Try to find the best way to survive with a tight budget and save more money.
Take your first step today and tell us the result!