Low In come budget: How to save money with a low income budget
This article would show you how to save money even if you are on a low income budget. The biggest mistake most people who earn a low income make is that they mostly consider Saving as a luxury that only high income earners can afford and not the other way round.
What is Low income Budget
This will describe what a low income budget should consists of, how to live on a low income budget, what to include in a low budget income planner, and effective ways to even save money if you are on a low budget income salary
How To Save Money on a Low Income Budget
Savings on the other hand is not meant for just high income earners, low income earners can do it too but they will be able to do so if they are able to take control of their finances and be able to plan your lives and finances to suit the type of income they earn.
Most people who earn a low income are always looking forward to the day they can earn a higher income so they can start saving.
But what if that day never happens . And they keep on earning a relatively low income for the rest of the year working lives
This would mean they would have kept waiting for that day they can anymore to save so they never really saved enough the whole lives.
How To live on a low budget income
People who live on a low income budget must be aware that not all people who earn high incomes may not be able to save enough for their future.
Surprisingly there are some famous people who were able to earn enough in their prime time but whenever able to save enough.
It will generally be easy for people who earn a lot more to be able to set aside a few savings and investments but this should not discourage people who do not earn that much from saving or doing any form of investments with your future.
Saving money on a low income budget people must work extra hard and it would require a bit of sacrifice, self discipline, self-control, patience and HOPE.
To be able to start saving enough money as a low income budget earner they must be able to cut their expenses down drastically.
Low Income Budget Examples
But unfortunately there are some basic expenditures that people spend their income on and are considered as the necessities of life.
A few of these necessities of life include housing, food, utility, bills and transport.
If a low income earner Has the mind made up on saving they must be able to differentiate between their needs and their wants.
If this is done correctly low income earners can be able to cut down the expenses they spend on their wants.
How To shop or keep food/grocery for low income budget
Now the next big thing is to be able to cut down the amount of money they spend on their needs. . This is however a very difficult thing to do because as it was stated above these are the necessities of life and people cannot go on with without necessities such as housing and food
But here are a few tricks that can help you to be able to decide if you are spending a lot more money on your necessities.
There are some people who can spend as high as HALF of your monthly income just on rent. This automatically means they are going to either see very little money at the end of the month or they would not be able to save at all.
Housing matters for Low income budget
If your rent costs as high as your monthly income or even more than that then you’re making a very bad decision when it comes to how you spend your money.
In this scenario that person must take this step is to either find an accommodation which is cheaper than that or find an extra source of income.
If you are just starting out and you’re probably in your 20s and you’re so Match on accommodation you have to consider different ways in which you can put a roof over your head that would save your pocket than paying so much to your landlord.
Some people may argue that they prefer to live in their own space and I love where they live but if you’re earning a low income you might be able to make some sacrifices to be able to save enough.
For instance if you earn £1000 a month and you spend 500 on rent that’s a very bad decision and you must either find another source of income or you find a cheaper accommodation.
Some cheaper accommodations you can consider maybe moving in with family or living in a shared accommodation. Thus having either roommates or housemates.
Remember this is not going to be a permanent situation especially if you are able to invest the money you saved from your “expensive” accommodation.
Paying Bills on a low income Budget
The next thing you can consider cutting down is your phone bills and utility bills.
You can always consider getting cheaper fun plans than the expensive ones and even getting cheaper Internet deals than the expensive ones.
Do you must do your research to find out if there are other options that can save your pocket than the option you’re presently using.
If you are able to find a cheaper phone and Internet options you can quickly switch to it if this also applies to utility bills as well.
In some countries such as the UK people can easily switch their utility provider. So you can come again to do your research to find out if they are any cheaper options for you if they are no cheaper options then you should take a look at your choices on how you use your utilities.
You can make a bit of sacrifice for some time so you are able to pay less for your utility because this would not be a permanent situation if you are able to invest any money you saved from this minimalist living.
Download our Low income Budget Planner (printable)