How To Save Money On a Low Income
Create a budget to save money often
Compiling a household budget is an important task before you begin saving. You need to know exactly how much your household income and expenditures total, to find out what is left to save.
A spreadsheet is a good place to start as it can be easily updated. A quick internet search will reveal many free budget templates. Or, you could make your own from scratch. You can also download budgeting apps to your smartphone.
Once you have set up your budget app or spreadsheet, enter your household’s monthly (or weekly) income. Next, add your essential outgoings. This could be your electricity bill, car insurance payments and your food shop. Deduct your outgoings from your income. Anything left is cash that you could save.
Save money with a meal planner
Meal planners work well when your income is low, and you are looking to make savings. You can organise your meals for the week ahead before you head to the supermarket. If you stick to your shopping list, you can ensure that you do not overspend on your food bills.
If you need inspiration for how to eat on a budget, there are many recipes available for free online. Besides, buying groceries online is a good way to ensure you are not tempted by in-shop offers you did not want.
Reduce housing costs to save more
A big house can cost more to maintain. Consider downsizing to reduce your rent and heating expenses.
What’s more, living in an expensive area can increase the cost of your rent. If you could still get to work from a cheaper area, consider whether you could move to help you save money.
If your house has a spare room, you could rent it out online through a website like AirBNB. The money can go towards your mortgage costs or savings.
Moving or sharing your house with strangers may seem extreme. Yet, a short-term sacrifice could help you make the savings you need for improvements in the long term.
Switch energy supplier for big savings
If you want to make savings on a reduced income, you have to make sure you are not overpaying for your essentials. Your energy supplier is one place where savings could be significant.
Use comparison sites, such as uSwitch, to check for a better deal. You can also compare your broadband, mobile phone package and even credit cards.
Spend with cash, not card to be frugal
Using a debit or credit card for purchases ca feel like you are not spending money at all.
Withdrawing a set amount from your account every week can help you to keep track of your outgoings.
Anything left at the end of the week, you can add to your savings.
Increase your income by earning online
Saving on a low income is difficult but not impossible. You could top up your earnings online though many methods.
You may not make millions but the extra money can help you to save on a reduced income.