Trying to save money on a low income is no walk in the park but this should not come in between you and your goals. When money is tight your main goal is just to get by or just get your next paycheck. However there are some ways you can save, you just have to make a decision to save and go full throttle. It will not be easy but it will be worth it.
Here are some creative ways on how you can save money with a low income:
Reduce food expenses
Sticking to a food budget is not easy when take-out is so convenient. There’s a temptation to always eat out at restaurants or to meet up with friends at restaurants. The best way to reduce your food expenses is to have a meal plan. Meal plans help you save money on a low income. You don’t have to buy lunch in the office. You can pack your preferred meal from your meal plan and a few snacks to avoid spending more on food. It’s easier to reduce your food expenses with a meal plan.
Set up a standing order
Setting up a standing order is a great way to save money on a low income and it is hard enough, but it’s even harder not to spend the money you’ve saved. Create a budget based on your income and figure out how much you need to cover all your expenses and save the rest. Set up a standing order to go to a money market account or a fixed savings account. This way you’ll adjust to the income you have left and find a way of working with what you have.
Reduce housing expenses
Housing expenses consume a huge part of everyone’s expenses. If you can reduce your housing expenses you can save so much more. Consider moving to a smaller apartment as a way of reducing costs. Or if you live alone consider renting a room to make extra income or to contribute to your housing expense. You can also consider moving to a different location altogether if it’ll help you save a couple more coins. Reducing house expenses can contribute majorly to reducing your overall expenses and in turn increase your savings account.
Slash your entertainment budget
Entertainment expenses have the potential of causing a huge dent in your budget. Keep your entertainment costs at bay by choosing alternative options. Instead of meeting friends out for dinner you can host dinner parties, have matinee movies in the house or just movies with popcorn. You don’t have to keep going to the club. You can host parties at your place. The liquor store is much cheaper than bottle service at the club.
Create a budget to save money on a low income
Even before you paycheck hits your account make sure you have planned for every single coin. If there’s any cash left over you can put it in your savings account. By always having a plan and a budget you can avoid wasting money and overspending on unnecessary stuff.
RELATED: How the 50/30/20 Budget Rule works
Eliminate your debt
Debt can cause a strain in your budget and saving goals. Make it a priority to repay your debt. Make a plan on how you can repay your debt as soon as possible so as to start your journey to financial freedom. Eliminating your debt will pave your way to save money on a low income.
You don’t need the latest iPhone or Macbook or iPad. The latest technology should be a luxury. If your current gadgets are working you should learn how to work with that. Do not struggle to impress people with the latest technology at your expense.
Buy Second Hand
You can buy almost everything second hand or used. You can buy renewed kitchen appliances, cars, clothes and even baby products. This will save you a couple of bucks but at this point every penny will count.
Find another source of income so as to increase your savings. If you don’t have enough money left over to save after deducting your expenses, it may be time to start a side hustle. It’s difficult but it’s completely doable. You just have to be dedicated enough to create time.
Sell your stuff
Sell your belongings online. If you no longer use items in your house you might as well sell them and make some money while at it. If you have home decor or furniture you no longer use or no longer fits your style.
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