Hey, what’s up. In today’s article, I’m going to be sharing with you tips on how to save money with a low income budget. These are all tips and strategies that I myself have learned from personal experience.
I know it’s a little bit more of different articles. In fact very different from makeup and what I usually talk about but this topic has been on my mind for quite a while.
I really want to share with you how my husband and I save money?
Are you trying to save up to buy your first home or maybe your first car?
Are you a low income earner?
You constantly have to keep an eye on your earnings and move around your budget and never able to relax and financial peace of mind. If that sounds a little bit you might just want to keep on reading.
My Story of Saving Money With a Low Income Budget
Here’s a little bit of a back story of my husband and my financial position. I’m a low income earner. Always have been working in the hospitality industry and everybody knows it’s not the highest or most glamorous paying job.
But I do enjoy it and I’m actually really really good at it, after 10 years who wouldn’t be.
My husband is also a small business owner of a dance studio in our town. So dependant an overall picture we’re not exactly raking in the money but here are tips on how we have been able to manage our budget, our incomes be debt-free and have financial peace of mind.
How to Save Money With a Low Income Budget
The biggest thing to remember is that your income is your greatest asset you’ve got to manage it wisely with all that you’ve got.
Once you’ve got your income you’ve got to spend it wisely because once you spend it here and spend it there and everywhere it’s no longer yours.
You’re never going to see it again. It’s now become someone else’s income and now that I’ve got all that out of the way let’s start with tip number one.
1. Establish Your Budget
You’ve got to establish your budget. Put some serious time aside. Sit down either by yourself or with your partner and work out what your necessary expenses are, each week that it be rent groceries, fuel your internet, your phone usage. These are your recurring expenses.
Remember that once you’ve got your income it’s already not all yours so work out what your budget is.
You know what your income is. Put aside your weekly expenses and what’s left is your budget. What you have to work with to put aside in order to save money and that brings us to tip number 2.
2.Put Money Aside Each Week
That money that you have left put that money aside. Like I said in tip number one when you’ve earned it it’s never all yours. You already know that you need to buy food, pay rent, put gas in the car, pay taxes etc.
So with that money that’s left put it in a savings account or on the other hand set up a direct debit so a certain amount that you’ve set automatically goes into that savings account without you having to remember to do it each week.
Once you’ve put aside your money for your rent and expenses. What’s left you don’t even have to put all of that into your savings account. Just think of how much you could save.
If you didn’t leave it in the easy spendings account and put it aside and that way you know exactly what’s left for you to work with for other expenses that might come up. Or whether or not you can afford that extra little treat that week.
I always say out of sight out of mind and that’s definitely true when you don’t see that certain amount of money in your spending account and have it in a savings.
3. Make a Short Term Savings Goal
Aim for a short term savings goal even if it’s six months or one year. I always find that I save more successfully when I have something to work towards when I have a goal.
When there is an end in sight, you know what your budget is to always make these goals attainable. You can aspire but be realistic or you could end up feeling discouraged or defeated.
4. If You Don’t Have The $$$ Don’t Buy It
Taking out small loans to buy the newest and latest model of something is not going to do you any favors in the long term. Avoid things like after pay or even lay-buy.
Sure there might be an advantage to the lay-buy payment plan. But the temptation of having that item right now and then paying later could have the potential of getting way out of control, way too quickly and before you know it you can have small debts here in there that could very easily turn into one large shopping debt.
5. Plan for Upcoming Events
If you know you have an event coming up like a concert, a show, a wedding of where you need to spend the weekend away. Or feel that you’re obliged to give the monetary gift. Or even if you don’t have it. Set aside an amount for that each week whether it’s $20 $50.
Small savings put aside are always less noticeable in your account then a huge chunk of money gone in one weekend and all just due to poor money management.
You’re going to end up spending that money anyway so you may as well put it aside once you’ll know that you already have that event planned.
6. Maintain An Emergency Fund
Have an emergency fund, this can make all the difference. Having that safety net is definitely the price that you pay for having peace of mind. This is the amount that you’ll put aside each week.
My husband and I, for example, count this money that we put aside in our safety net as part of our expenses each week. We make a point not to use that money because that’s for our safety net whether it’s $50 $100, or $150.
Whatever you can spare put it aside instead of spending it on eating out or junk food or some frivolous thing that you’ll never get benefits from in the long term.
The emergency fund is there for just that emergencies so when you do use it or take any money out from that remember to always replenish it.
7. Save All Your Loose Change
This tip is actually quite easy. Save all your coins.
I’m actually serious
Any loose change that you have everyone’s got them floating around in your bag in the bottom of the car, in the corners of the bedroom, somewhere under the bed or even those random bits and bug containers in baskets that you know everyone has one of them laying around the house.
Take all that extra small change. Put it in the cash tin, a flower pot, a piggy bank and you know what at the end of the year you just might have saved enough to buy yourself an extra nice Christmas present.
I know because I’ve done it at the end of one year. I had $300 all because I saved my extra coins.
8. Don’t Tap, Insert!
Don’t just tap it, insert it. Now you get your mind out of the gutter. I know what you’re thinking or maybe it’s just me, no no I’m talking about the utility of PayPass.
When you tap your card the money doesn’t come out of account immediately which then when you check your bank account gives you a false reading of what your account balance actually is.
When you insert the card to make payment the money shows up immediately as spent and then you can keep better track of your expenses.
This applies especially for when you’re going on shopping sprees or those days when you feel like you just need a little bit of extra retail therapy. Because goodness knows I like to do that every once in a while.
9. Use The 24 Hour Rule
This means, before making a purchase take 24 hours to think about it. Avoid trolling online shopping sites at 2:00 a.m. in the morning because everyone knows that you have a diminished sense of wise judgment at that time of the morning.
So for me, the 24-hour rule would apply when I want you to make purchases like for example a new camera, some equipment for my filming, even a laptop, or a new makeup release that I’m really wanting to get in on.
So not smaller expenses but more of the closer to hundred to two hundred sorts of expenses. You got to think about it first. I’ve done this many times where I’ve been doing some online trolling past midnight and I’ve put items in my shopping cart and then I stop and think about it and think I’ll continue this in the morning. I go to sleep when I look at the shopping cart again I think oh I don’t need that or that doesn’t look as good, I can do without that one.
Giving yourself time to think about these things before making the purchase will also allow you time to do some research about it.
Enable you to make a wiser and more informed decision before you go and spend your hard-earned cash.
10. Think in Terms of Time Vs Dollars
Think in terms of how many hours an item would cost rather than how many dollars as a low income earner. I do this all the time no matter what job you’re in.
Think of that difficult client, the rude customer, the workplace that everyone will inevitably face in one way or another and so think to yourself whether or not this purchase that you’re about to make is worth it.
For example, if you get paid $20 an hour and you want to buy $100 worth of makeup. I ask myself is working those five hours really worth it. Is the product that I’m getting really a reward for those hours I worked. Will they give me joy. Will it give me long-term benefits. Am I getting from my makeup collection actually yes but are you weighing up the items to the hours that you worked and the answer is no then you’ve got your answer.
11. Sell Your Unused Items
This is one that I do all the time. Sell your unused items on Facebook or Gumtree. I periodically go through my unused makeup items and then sell them all together as a bundle.
There are usually people out there like me who are willing to go and spend $200 on a bulk of something because bulk means savings right! and then I have extra money that I can put aside for fuel or groceries that week. Or even more makeup.
12. Don’t Be ExtraVagant
You don’t always have buy the newest and latest model of anything and everything. In fact, you don’t even have brand names.
We live in an age of consumerism where there will always be someone else selling their lightly used two months old phone, computer, car which they will have to sell for a second-hand price.
Even if it’s only lightly used op shops are always a great place to find lightly used or sometimes even brand new clothing at a discounted price.
My husband and I buy a majority of our clothes from op shops and we’ve even found some Ripper deals. You just got to know how to comb through the shelves and when you’re a budgeter like me you learn pretty quick.
13. Don’t Buy Cheaps For Cheap Sake
Well, you don’t always have to the brand new brand names of everything. Don’t buy cheap for cheap sake. There’s budgeting and then there’s investing.
The husband and I wanted to buy a brand new vacuum cleaner and one of us wanted to spend $100 on a cheap target one. And the other one of us wanted to spend $380 on a Dyson vacuum.
I am not going to say who wanted which but after a bit of convincing we finally ended up buying the 380 dollars Dyson for a longer return in life and quality. That was a few years ago now and it’s still going strong.
Here are a few other small random tips that I do on a daily basis.
Take a packed lunch to work with you don’t buy it out. Commit to eating out a few more times each month. So that when you do it’s more of a treat rather than a convenience.
Compare prices when doing the grocery shopping usually price stickers will tell you the unit price. That way you can see what best bang for your buck that you’re getting.
While we’re on grocery shut the sales. There are always sales. Don’t get comfortable sticking to the one brand of this or let’s put the sale stickers. And in the long run, that’ll save you a bit of cash.
So that’s all my tips for today my husband and I are debt-free. We owned our cars we are well on the way to being able to buy our first home and these are all things that we both practice in our daily lives.