There’s hardly enough to feed and pay the bills to talk less about setting something aside for rainy days. This opinion is held by millions of people globally. And this Budgeting on Low Income is timely.
We all have goals; they can be short or long-term. But bringing those plans to realization can seem somewhat impracticable when you make so little.
Low-incomers have it tough. Many of them persist on daily income. So, budgeting seems impracticable to them.
If you find yourself in this circumstance, here are 8 budgeting tips penned down just for you.
Budgeting On Low Income: Here are 8 Tips
Create a To-buy- List Before Going Shopping
Planning a list before going for a purchase can help you when budgeting. To be more exact, if the details on your list are just stationery articles, make sure you stay on course.
There’s no doubt you’ll see other items that catch your attention but clinging to the to-buy list assists you in spending less money.
Also, since you make very little, you need to keep in mind that only your needs are essential when shopping and not your wishes.
How to go about it:
- Keep in mind that your needs are more significant than your wishes.
- Envisage the items you need and write them down on your to-buy list.
- Abide rigidly by the to-buy list when you get to the shopping mall.
Always Keep Excess Money
There will be times when your expenses fall below your budget. That is, you might have spare change.
In such circumstances, regardless of the surplus, saving would be the best course of action.
It’s all too easy to give in to the desire to spend on yourself. But having more change is a tremendous reward to you.
Also, budgeting on low income is much easier when there’s spare change.
How to go about it:
- Get a saving account or a piggy saving box.
- Save in it any spare change you have.
- Keep in mind that the money kept in there is for emergency purposes only.
- Endeavor to stick with your plan.
Do Away With Non-Essentials Bills
It’s a fact that there are lots of bills to pay. But some of those bills are redundant. A lot of families spend a lot on television.
The internet, online games, and Netflix are practical ways to alleviate the stiff feeling you get after a hectic day. But in the true sense, they can be termed as non-essential bills. These non-essential bills can make budgeting on low income impracticable.
Recall what I said initially about needs and wishes? Yea! These fall under such categories.
Fulfilling your wishes no doubt adds to the beauty of life. But they shouldn’t occupy the space for more urgent bills.
How to go about it:
- Have a list including your main demands at the top of it.
- Prioritize first the payment of those needs.
- Try chopping off the internet service at home and try managing mobile-based internet.
- Learn to avoid premium subscriptions.
Be Regular With Your Savings
Saving every month despite having a low income can be very difficult. But it’s not improbable. To accomplish this, you’ll need a colossal measure of self-discipline.
Budgeting means that you’ll have to sacrifice a lot. Doing this is necessary to avoid ending up in debt. True, it’s not going to be simple but, its outcomes are rewarding.
How to go about it:
- Makes sure you inevitably transfer a particular sum to the account set aside for savings.
- Do away with non-essential bills. Doing this will help you avoid debts.
Do Away With Items You No Longer Use
Many are willing to purchase already used items as long as they still look current. Honestly, there’re few if not many items that are gathering dust in your wardrobe.
Look for these items that you no longer require. They could be baby dresses or shoes that you’ve discarded.
Trade these items to others who are willing to purchase them. Though the cost at which you sell them may be affordable, the spare change wouldn’t hurt, and they can assist in low-income budgeting.
Use Banks That Are Charges Free
Unnecessary bank charges can ruin your financial projections. Many banks charge a lot in the name of maintenance fees.
If your bank develops a pattern of subtracting too many fees, that might be a warning for you to jump ship.
There are many adverts about banks that charge less or operate with a no-charge policy. Why not find out more about those banks?
Use banks that make budgeting easy, they can help you achieve your financial projections.
Have A Goals
One hack to budgeting is through planning. To illustrate, consider a teenager who decides to buy a play station5 which costs about $499.
Assuming he has a weekly allowance of $30 and resolves to save $10. He’ll need to save ten months to come up with $400. A month comprises four weeks. So, that’s $40 per week. $40 multiplied by ten months is $400.
$400 is a lot of money but don’t focus on that. Focus on the goal in mind. That prompted him to save up for it.
Moreover, having a goal can make budgeting for low income easy for you. So, have a plan. Your plan can be anything. You could budget money to open up your restaurant or pay your child’s tuition fee.
Have More Than One Job
Sometimes reducing your expenses isn’t a reasonable approach. If you can relate to this, why not get a side job? Doing this can help out with the cost of living.
You could register as an Uber driver and pick up people on your way to work and back from work.
You could also make money with your talents. If you know how to play the piano or guitar, why not organize piano lessons on weekends?
There are also freelance platforms like Upwork and Fiverr; you can earn money with your skills on those platforms.
Side jobs don’t have to be the same as the regular 9 to 5.
To Sum Up Budgeting on Low Income
Being a low-income earner doesn’t prevent you from having a budget. I know talk is cheap but, budgeting or saving should be something of high priority. Remember, budgeting is much easier when you have a goal in mind.