How To Survive On A Low Income Budget – 10 Best Tips

How To Budget Money On A Low Income

How To Survive On A Low Income Budget – 10 Best Tips | What a budget actually is? Budgeting is the process of creating a plan to spend your money. You analyze your earnings, and allocate money for your outgoings.

This can and should be applied by everyone from high-earners to individuals on a low-income.

Budgeting allows you to:

  • See exactly where your money is going
  • Decide if you’ve got enough to do exactly what You Want to do
  • Strategy to save/spend accordingly with your Objectives
  • Know what your financing seem like, and also be able to avoid debt and overdrafts because of this

When you’re living paycheck to paycheck, the idea of saving enough money to get out of this rut appears hopeless. It seems like the only way to save money is to make more cash, and it is a good idea but maybe not always the best or most viable alternative. When you are on a very low income, everything spent on suddenly takes a good deal more consideration. This is the reason why budgeting is essential when you earn much less money.

If you’re on a low income, budgeting is totally possible and may be a enormous game-changer to your financial circumstance. Listed below are 10 best hints to how to budget a low income:

Learn To Live On A Budget

Before we got serious about fixing our financial situation, we didn’t have a financial plan. To this day, when I consider us not residing with a budget, this makes me laugh. If I would have understood better .

If you are struggling to save cash each month, then you need to create a budget! There’s no excuse for you not to live on a budget, but they are very simple to prepare!

This is, undoubtedly, the most important tool we had to help us save cash. Not to mention it’s super easy to build a budget.

If we had been living on a very low income, the budget really helped us control what our money was spent . It gave us a very clear image of where each dollar went.

Regardless of your income level, you will need to have a budget!

Analyse Your Spending

First, learn how much you really spend each month, then use that info. Describe where you probably spend more money than you have to and work to decrease the spending in that region. Small modifications, one after the other, is what actually begins a frugal habit.

Analysing my paying is the thing that constitutes living on a low income whilst traveling possible for me personally. We know just how much we earn, how much we spend each month and our limit is. Sure, our investing isn’t always perfect and things do not always go to plan — but arming yourself with some knowledge about your spending would be the best first step.

Reduce Your Food Expenses

If you are anything like us, one of the major expenses every month is likely food.

If you’re wanting to save money when money is already tight, try looking at just how much you are spending on food each month. I wager you can figure out ways to save money out there.

One of the things we did to save money was stop going out to eat. I do not mean cut back on how much we went outside to eat, I suggest we completely stopped going outside to eat.

During that two and a half years we didn’t head out to eat one time. It becomes really expensive when you go out to restaurants. We discovered that cooking our own foods is an excellent way to spend less.

The second area we looked for savings on food was in the grocery store. We were spending way too much on groceries every month.

  • Shop with a record, and stick to it
  • Shop sales
  • Use programs like Cartwheel or even Ibotta to Spend Less
  • Buy generic brand meals
  • Do not store while you are hungry

There are so many ways to save money on grocery stores. Take some time to look at what food you’re buying and I will bet you figure out ways to save money next month.

Save Cash on Transport

You might not think about it, but driving to work each day costs you a great deal of cash. A lot people write it off as a necessary cost since, well, you know, you will need to reach that job if you wish to have any money to save.

We know that you want your job but have you considered finding alternative methods to get there? That could help you save money!!

He didn’t do it because it was simpler or more convenient. No, he rode it since it was liberated!!

His employer paid for individuals to ride the Metro system so he took advantage of that. He did not need to pay for gas or parking in town. He did have to forfeit some sleep because he had to get up earlier for work in time, but it saved us more money!

Try to think about your trip to work every day. Do you think you can get there a different way that could help you save money?

Coupons Can Save You Money

Growing up I never actually knew what coupons were all about. I didn’t understand just how awesome they really are. I can tell you now, I love them!

Don’t get me wrong, you’ll never catch me on an episode of Extreme Couponing, however, I do like to use them once I come across good ones.

Coupons are wonderful for helping you spend less on groceries, diapers, formula, clothing, and just about whatever else you may think of. Do a fast search online and you’ll likely discover a coupon for whatever it’s that you want to purchase.

We always try to look for vouchers for groceries, oil changes, infant supplies, or kid’s clothes. There are a lot of them on the market, you only need to look!

Cut Back On Unnecessary Expenses

We have got them, these unnecessary expenditures. When times were getting tough for us the very first thing we did was offset any unnecessary subscriptions.

The first thing we entrusted was Direct TV. We reduce the cable cord and haven’t looked back. Aside from the financial advantage, not watching TV has been AMAZING for us!

If you are not sure where to begin with saving money, start with looking at what you’re spending your money on. Consider writing down all of your bills and ask yourself which ones you absolutely need and what could you get rid of.

I say take a shot and cut the cable cord. You’ll thank you later!

Set Some Goals

Budgeting is a lot simpler for those who have goals in mind.

As an example, my goal is to begin saving 10 percent of my income per month. That may sound easy to some, but when you are handling a brand new freelance company that’s under a year older — perhaps not so much.

What kind of target could you place? Here are a Couple of examples:

  • Put away X to your savings account Each Month
  • Save X by the end of the year
  • Make an extra X from the end of the year
  • Save X to afford a holiday next year

All these are rather vague, but your objectives will be completely personal to your own life. You might only wish to budget to find a better management of your own finances, or you may want to budget so you are able to manage to buy yourself something nice following calendar year. That is up to you.

Reduce Your Utility Bills

I know it might not sound like a excellent method to spend less, but focusing on your utilities is more significant than you may think.

If you are trying to save money on a very low income, simple things like fixing your thermostat or turning off the lights in case you’re not in the room can have a huge effect. The house we bought last year has been poorly insulated. During the winter it gets cold in Minnesota so we buy a few inexpensive window insulator kits and sealed any doors that are leaky. This makes a enormous difference in our heating bill.

Simple adjustments to your way of life and being aware of your utility bill can help you to save big money during the year.

Sell Unwanted Items

This entire post is about ways to save cash quickly on a very low income. One of our favourite techniques to build up some cash fast is to sell stuff around the home.

If you need some quick money, take a look around your home and I bet there is things you’re able to sell for a few money. Or, better yet, have a garage sale when you have sufficient stuff to sell. We’ve done garage sales previously and made a couple hundred dollars every moment.

It’s never been easier to sell things with websites like Letgo, Craigslist, or even Facebook Marketplace. We try to go through our home monthly now and whatever that we don’t use gets offered.

This is a great approach to declutter your home and get money in your purse.

Start a Side Hustle

If you are trying to conserve money on a very low income along with the other 9 suggestions you have read so far aren’t helping you get it done, there is one final thing you can attempt… Start A Side Hustle!

Increasing your earnings is a wonderful way to save more money. That’s, clearly, as long as you don’t start spending more!

David is pretty good with tools and conducted a small throw side hustle for a short time. I created and marketed soap for a tiny bit.

I’m pretty sure our family thinks we are mad for all the different side hustles we have tried through time. However, you know what, who cares! Every one of these side hustles assisted us make a small amount of extra money that ended up helping people grow our savings account.

It’s time to bring your entrepreneurial spirit and start your own negative hustle. There are tons of alternatives out there, you just have to find the one which works for you!