If you are trying to save money on a low income, it can feel like a challenge. But don't let a low income stand between you and your savings goals! You should not feel like you have to put these on goals, such as retirement or a home down payment, on hold. Luckily, there are some creative ways to save money on a low income. Although you will need to think outside of the box, it is entirely possible to save money when you aren't earning as much as you'd like.
Consider making it a challenge to increase your savings with a frugal approach to your budget, so that it doesn't cut out the fun parts of life. Today we will share real tips that can help you save money.
1. Build a budget that works for you
Budgeting might sound like more trouble than it is worth, but it can help you to build your savings.
Unless you have a plan for your money, it can be straightforward to spend it. With a budget, you can include your savings goals. Instead of aimlessly saving what's left over each month, you can meet your savings goals through careful budgeting.
2. Lower your housing costs
According to a study, housing expenses can be one of your highest costs. Imagine if you could cut down your housing expenses by a few hundred ringgit each month. That money could make a massive difference in the size of your savings and overall quality of life.
There are a few ways to cut your housing costs, including:
Downsizing: It is not as bad as it sounds and there is no shame in it. Consider a small apartment or home as a way to tune down costs.
Relocating: Location is a crucial detail in real estate prices. Could you save money by switching up your spot? For example, moving from downtown to the suburbs could be cost-effective in some areas.
Take a look at your situation and decide which option works best for you. An affordable place to live can completely transform your finances
3. Eliminate your debt
Debt can hold you back from achieving new financial goals. The constant strain on your budget can leave no room for savings at the end of the month, for example credit card debt, personal loan and car loan are unhealthy debts. But not all Debts are bad and one of them is Property Loan which is counted as an investment rather than a debt.
Make it a priority to tackle your debt. It will take commitment to erase your debts, but it can lead to a more comfortable life. You'll be able to put the money you were using for debt repayment towards your savings.
4. Be more mindful about food spending
Food spending can wreak havoc on any budget. With the constant temptation to eat prepared food at a restaurant, sticking to a food budget can feel like an imposing challenge. Although you might not be spending that much on eating out, there is likely room for improvement. Look for ways to cut your restaurant spending.
One of the best ways to combat last-minute food purchases is through meal planning. If you already know what you are supposed to have for dinner, it is easier to avoid those unnecessary expenses. Start off with a 10-day meal planning challenge to get accustomed to the feeling then increase the time gradually.
5. Automate your savings goals
Choosing to save money can be difficult when you are forcing yourself to do it. And it is tiresome to do a transfer manually for your every paycheck. You are more likely to spend all the money in your checking account. Unless you move your savings automatically, you might spend your intended savings without notice.
With each paycheck, set up an automatic transfer to your savings account. You may worry less, knowing that your savings are tucked away safely. You won't regret if you arranged a fixed deposit to your savings account.
6. Find free or affordable entertainment
A portion of your budget that is entirely variable is your entertainment budget. You may overspend in a big way with entertainment. On the other hand, depending on the type of entertainment, you can still have fun without spending too much.
Try some entertainment that does not affect your standard of living but still provides you with quality of life such as, reading, singing, indoor and outdoor sports with your loved ones or people around you.
7.Take care of your health
Healthcare is expensive. Unfortunately, there are not too many ways to cut down on your healthcare insurance costs. However, a preventative attitude about medical problems can help you save money and enjoy a higher quality of life.
A few ways to practice preventative healthcare include:
Exercise.
Eating right.
Quit smoking.
Quit Drinking.
Having enough sleep.
If you have healthcare insurance, then take advantage of what that plan offers. For example, if it includes annual doctor visits, then make time for a check-up.
8.Increase your income
At some point, you might not be able to squeeze out more pennies from your budget or create more breathing room from your earnings, then it is time to increase your income or paycheck.
Although it is not as simple as it sounds, increasing your income is entirely doable. One way to increase your revenue is through a side hustle. It could be the perfect way for you to increase your income without compromising your day job.
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