Most of us want to save money so we 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’re surviving on low income. Today, we would share some Tips for Saving Money When You Have Low Income.
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Tips for Saving Money When You Have Low Income
Look at Your Food Bill
Another way to save money is to change the way you eat. Probably the best thing you can do is to stop or greatly cut back on eating out. It’s so much cheaper to eat leftovers from last night’s dinner than to go out for lunch. And the cost of dining out tends to rise faster than the cost of groceries. In the 12 months ended in July 2019, prices for food purchased to eat at home rose 0.6% while the cost of eating out increased 1.8%.5
You could also consider giving up or cutting back on meat. Though produce can be expensive too, especially if you purchase fresh and organic options, meat typically costs more pound for everyday items. And you can also save money by buying frozen or canned fruits, beans, and vegetables.
Plan your meals around your grocery store’s flyer
Instead of creating your meal plan out of thin air, plan all your meals around what’s on sale in your grocery store’s flyer. Look at the biggest sales, then plan recipes based on those ingredients and what you have on hand. Do that for a few months and you’ll find yourself with a much smaller food bill than you’re used to.
Keep Your Budget Lean
To save 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.
Just 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.
Try the cash envelope method
If you struggle to keep track of your spending, then the cash envelope method could be a great option. The cash envelopes could help you realize how much you are spending. It might open your eyes to your harmful spending habits.
Once you have a better understanding of what you like to spend money on, then you can work on adjusting those habits.
Increase your income
At some point, you might not be able to squeeze any more pennies out of your budget. Or you might want to create some more breathing room in your finances.
If you feel that there is no room to create savings in your current situation, then it might be time to increase your income.
Although it is not as simple as it sounds, increasing your income is completely doable. One way to increase your income is through a side hustle. It could be the perfect way for you to increase your income without taking a leap from your day job.
Whether you want to walk dogs or build a blog, there is a side hustle that will work for you. Check out our step by step side hustle guide to start building your side hustle today.
Cut judiciously
Once you know why there’s too much month left at the end of your money, you’ll know what to cut out of your monthly expenditures to get back to living within your means. Some cuts will be easy. Restaurant meals and snacks can be cut out in favor of cooking at home. Insurance costs can be made more manageable by raising your deductibles. Services you don’t use—like that gym membership or the extra data plan on your phone—should also be on the chopping block.
But don’t forget about cutting costs in basic areas, as well. You can often lower your utility payments by making sure you turn off lights and unplugging power vampires, for example.
Learn how to dress minimally
Buy clothes that mix and match well and you won’t need nearly as many clothes. If you have five pants, seven shirts, and seven ties that all go together, you basically have an endless number of options already.
This is exactly what I do in order to minimize clothing purchases and still look professional – I just mix and remix what I wear by using timeless, simple pieces that go well together.
