Most people want to save money which is usually for future activities such as buying a dream home, college education, going for a vacation, building wealth or something special.
However, this can be difficult when you are on low income. No matter where you are on your financial journey, you need to know that it’s possible for anyone to turn their financial life around and start saving money.
All you need to do is take first step in the right direction and start to get things rolling. So here are some great tips on how to save money fast on a low income.
1. Live within your budget.
Make sure that you spend your salary on essential items and cut back on nonessential items such as alcohol and cable TV subscription.
Cut down on the amount of television you watch, read a book instead or go for a walk. You will save money on your energy bill, have less exposure to ads encouraging you to spend money and you will have more time to focus on other things in life.
2. Learn to cook your own meals at home.
Cut back on the number of times that you eat out at restaurants. As an alternative you can invite friends over for a fun night in instead. Tell them all to bring a plate of something and their own drinks and the evening will be fun and cheap.
3. Diversify your income.
Apart from your full time job, find some enterprise which will supplement your income. This can be done from your home during your free time.
4. Take advantage of tax refunds.
Low income earners qualify for earned income tax credit. These refunds can enable you to keep much of what you have earned hence saving more.
5. Cut down on rent or mortgage loan.
Rent and mortgage costs are one of the biggest expenditures of low income earners. Explore options such as moving to a smaller home or rent sharing.
6. Pay off high interest debts.
Ensure that you pay off short term loans which charge high interest. These include credit card debt and personal loans.
7. Check if your employer matches up your contribution towards your retirement savings plan.
You can always use the scheme for long term savings and you pay less taxes on your income.
8. Take advantage of discounts while shopping.
Make sure that you shop in bulk for discounts and when the retailers offer discounts. You can also shop at your local stores which tend to be cheaper.
9. Save on transportation costs.
Look for alternative ways of going to work other than driving you own car. Maybe you can share a ride with your fellow worker or use a bike.
10. Reduce your utility bills.
This includes simple things like switching off lights, fixing water leakages in the home and installing window insulator kits.
If you apply those tips on how to save money fast on a low income, you will be more prudent on how to spend your income. This will enable you to save money in the long run.