Saving Tips for Low Income Earners
Most people want to save money so they can build wealth and plan for the future; we have goals we want to reach (like traveling) or things we want to buy (like a dream home). However, this can seem impossible when you are surviving on low income or living paycheck to paycheck.
We all have our lean times financially, but even those lean times you can still find ways to save money for the future needs of you and your family, such as varsity and retirement.
Even if you have a low income, you can still save money if you are diligent about the process.
Tackle High-Interest Debt First:
You want to start saving right? First you need to tackle your debt head-on, specifically high-interest rate from personal loans, or credit cards, because they force you to pay outrages fees and interest charges.
You need an attainable, yet challenging plan to pay off your debt, so start by prioritizing your debt so you are paying off the ones with highest interest first. Then as you go forward, avoid accumulating any more high interest debt, especially credit cards.
Cut Down Your Biggest Expenses:
Aside from the usual money-saving ideas, like cooking meals at home, canceling your gym membership and canceling your DSTV bill, what more can you do? Well…instead of trying to cut back your small expenses, focus on the larger ones so you can make more of a significant impact.
If you are a home owner, this tends to be the largest expense for most people so consider refinancing your home loan for a lower rate or you can also rent out a room or parking spot for an additional income.
Keep Your Budget Lean:
To keep saving more, you have to take control of how much you spend. Choose the categories you want to indulge in, and keep the rest of your budget as lean as possible. You’ll have to make sacrifices but it’s not impossible. Learn to spend in moderation, for instance cut back on how often you dine out. You can still enjoy a nice meal at a restaurant, just not multiple times a week.
Buy everything you can used, like a used car, used electronics, used furniture, etc. You would be surprised at the great deals you can find on stuff that’s hardly been used. Sometimes you will find “open box” items that haven’t been used, but can’t be sold as new because the packaging has been damaged or opened.
Hustle, Hustle, Hustle – on the side:
If you are living on a strict budget and can’t cut costs any more than you already have, consider diversifying your income by starting a side hustle to earn extra money. Aside from your full-time job, you can get a job on the side to provide another income source.
Most side hustle can be done right from your own home in your spare time, so think about what you are good at and what kind of hobbies that can earn money, or what you already enjoy that can be turned into a side job.