People will often infer that saving money is the best way to get ahead. To some, saving is easily done. For others, saving can be difficult, due to either poor money habits or a lack of money to begin with. You might want to use a budget calculator as it is a useful tool to figure out where your money goes each month – being organised is vital.
Some people have a misconception that you need to have a high income to be able to have savings. While a higher income may mean that you can save more money quickly, a low income can also be used for savings. Instead of making excuses, you might need to look deeper into your finances, remove bad spending habits, and adopt methods of money management that allow you to make the most of the money you do get. Wishing for money and being envious of what others have will not help your situation. All that will bring is negativity and resentment.
These three methods of money saving can be used by individuals and families, including those who are on benefits or receiving minimum wage at their place of employment.
If you like to buy a coffee on your way to work or get takeout often, you are sitting on a theoretical mine of money. All these methods of convenience soon add up. By taking your own coffee or lunch, or cooking from home, you will be spending less overall. For example, a coffee each morning might cost about £3. In one working week that is £15. Over the space of a year that is over £750, even with factoring in potentially 28 days of annual leave. That £750 could have gone towards your savings instead.
Use a comparison service to switch supplier or complain to get better service
Looking at how much you pay for all your bills can also help you to unlock some extra money. You may find it is cheaper to change the company you use for electricity, gas, water, broadband, or even your mobile phone. Some companies will offer extra discounts for new customers, as well as potential cashback simply for switching. Use these to your advantage and put the difference into your savings account.
Increase Your Income
If you can’t make things work on your current income, then look into how you can get more. You might be able to take on just a few hours of extra work each week. This can come from your current employer, as well as from a part-time or temporary role. You may also be able to find something that can be undertaken from home. If you have a few hours to spare, these can be put to good use and your savings will increase. Even completing surveys will make you some money in your spare time.
Saving money on a low income might be difficult, but it is certainly not impossible. Find out which options are available to you, and start changing any bad habits.
Do share with us and our readers any other ideas you have for how to save money on a low income.