The importance of savings cannot be overstated. Through savings, realizing our goals can be made possible, whether it’s investing in a property, buying a car, or traveling. However, setting a certain amount aside for savings isn’t really that easy when you’re only surviving on a low income. When the money is tight and you’re just trying to get by, saving money may not be at the top of the priority list. So, how does one reach their financial goals on a low income? How do you save a part of your income with a meager salary? It may sound impossible but it’s something that you and anyone can do. Take a look at these financial tips to help you save money even with a low income.
Start cutting down on your biggest expenses
Saving up money with a low income is easier said than done. It may feel impossible to set aside a dollar or two when the budget is very tight. Besides working on reducing or eliminating little expenses, it would make an even bigger impact if you try focusing on the biggest expenses. For many people, accommodation costs are some of the highest expenses they have to deal with. And if you find yourself in a similar situation, the first thing you might want to consider is downsizing. This could be one of the best steps to take, especially when you’re living alone. Also, consider sharing the house with housemates. This way, you could have other people to split the rent with.
If you own your home, refinancing your mortgage for a cheaper rate might be something worth considering.
Settle your debts
Tackling your debts is another excellent way to help you save more money. It may be a slow process, but once you have zeroed out your debts, there will be more room for savings. Start tackling the ones with high-interest rates such as credit card balances and loans. These debts are the types that entail outrageous interest rates and fees. As soon as you start taking care of these debts, be sure not to accumulate more. Discipline and control are the keys.
Make use of coupons, discount codes
Are you a huge fan of online shopping? Take advantage of vouchers and discount codes. Also, check online if you can get cash back for your daily purchases. It would be an excellent way to save even with a low income.
Cut down on your other expenses
Revisit the list of your monthly expenses. Maybe there are other little items you can still take off? Try to re-evaluate if there’s anything you don’t really need to spend for. No matter how cheap or insignificant they are, their cost still accumulates. Removing them from your budget can still make a difference. For example, if you used to buy a cup of coffee on your way to work, maybe it’s time to make little adjustments and drink your coffee at home. If you are paying for cable services and you barely even watch TV, then perhaps it’s a good idea to have the cable service disconnected.
Start a side hustle
When you think you’ve exhausted all efforts to cut costs and still are unable to save enough, why don’t you start a side hustle? This option is perfect for those who still have time to spare outside their full-time jobs. You can check online for other potential sources of income. There are plenty of opportunities in the digital world if you start looking. If you have hobbies or interests, you can make money out of them, too. Do you have the penchant for playing musical instruments? Why don’t you share your talent and do a tutorial? If you can take photos like a pro and have a camera that can capture high-quality images, you can be an events photographer on the side.
Saving money with a low income isn’t really easy. But these ideas should help you get started.
If you want to secure your savings and put it in a place where your money can grow, the best thing to do is to do it with a credit union. Feel free to reach out to Calcite Credit Union and learn about the best ways to save money.