When you live with a small income, it can be particularly difficult to save money for things like an emergency fund, college, retirement, cars, or anything else. We all have our difficult times financially, but even in these difficult times, you can still find ways to save money for future needs of you and your family, as well as college and retirement. I really believe that even if you have a very low income, you can still save money if you are diligent about the process.
So let's go! Here are 5 ways to save money on a low income:
Evaluate Housing Costs
It is often difficult to save money because housing costs are a large part of the family budget. In general, it is best to keep housing costs at 25% of your home or to pay less. I am aware that in some regions of the country, it may not be possible with a small income, but there are still some very good offers available for rent. Just be diligent and keep looking.
If you own a home, you may be able to refinance your mortgage at a lower rate and free up the money that can be put into investments or savings. If you do not have a partner, you can even take a roommate or two and charge for rent to save on housing costs.
Plan your shopping
Never spend money on a whim or simply because "it feels like it". This is where a lot of money leaks tend to occur. The best way to spend limited income is to plan your purchases in advance with a written budget each month. This way you will spend your money on paper before it is spent in real life.
When it comes time to buy what you need, you will already have a plan in place and that will not happen, as only this way has been assigned to each category. When approaching your expenses this way, you will feel as if you received a raise because it gives you the freedom to spend the money when you do not have a plan.
Obtain a programmable thermostat
A programmable thermostat can save money on heating and cooling bills that can free up money for saving. You can buy a basic model of about $ 42, or a more sophisticated thermostat that saves a lot more energy. Angie and I have two Nest thermostats programmable in our house that cut our energy bills by approximately 11-16%. This means that you save around $ 31 to $ 46 per month on our energy bills. silky!
Of course, you can always change the temperature of your home manually as well, but a smart programmable thermostat can feel when you are away from home, and it is a much more effective job of controlling use than while strengthening it at the same time . The interesting thing is that even if these thermostats can be a bit expensive, they will over pay for themselves over time, making a great investment!
Buy Used Items
Buy everything you can use, for example, used cars, used electronics, used furniture, clothing, etc. It will be startled business that can be found in things that are hardly used. Sometimes you will find "open box" items that have not been used but can not be sold as new because the packaging is damaged or open. I get on eBay business to kill those goods all the time. I always buy used cars, and I have not even met to go shopping for goodwill sales and garage.
Do not use credit cards
Credit cards remain you in poverty. When using a credit card, studies show that spending 13% more on average because the use of plastic is so smooth and frictionless than spending money. This does not include the money you spend on interest and also the costs that come with the use of credit cards. Your best bet is to go only in cash and use the money in an envelope system with your monthly budget.
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