Saving on a Small Income

There are a lot of people in this world who live paycheck to paycheck. For these people, who often make minimum wage and feel like they’re barely surviving, saving is the furthest thing from their minds. In truth, though, just about anybody, on any income, can save if they really put their minds to it. If you’ve found yourself in a situation where you’re not earning as much as you’d like, there are things you can do to spend less and save more.

Ditch Debt

When you don’t have a lot of income, the last thing you need is a credit card, especially one with a high interest rate. If you don’t already have a credit card, don’t get one. Later, if you become more financially stable, they’ll always be there. If you do have a credit card, keep spending in check and pay your bill each month. And, if you’re already in credit card debt, pay it off as soon as possible and then avoid getting yourself in debt again. Pay off other outstanding debts as well. The sooner you can get out of debt, even if it means declaring personal bankruptcy, the sooner you can start paying for just the necessities and putting the rest in savings.

Save “Extra” Money

Anytime you find yourself with unexpected money, don’t go on a shopping spree. Instead, put that money in savings! Everyone gets surprise money from time to time. Whether it’s a cash birthday gift from grandma, a nice tax refund, or just a random windfall, the urge is to celebrate through spending, but that’s not smart. Since you would have been making do without the money anyway, do the responsible thing and stash it away.   

Change Counts

People lose a lot of money in change each year. It’s just not convenient. As such, it often rolls around in a wallet or purse until it accidentally gets discarded or lost. If you do manage to hang onto change, you probably spend it without thinking on vending machines or other “throwaway” purchases. In truth, though, change can really add up! If you put all the quarters, pennies, nickels, and dimes you accumulate into a large jar, you’ll likely be surprised at how much they add up to after a month. You can take that money and deposit it right into your savings account!

Eat at Home

One of the biggest money wasters is going out to eat! If you and your family indulge in restaurant food, even if it’s just fast food, you’re likely harming both your wallets and your health. You can eat a lot better and cheaper if you shop and prepare meals at home instead of going out.

So, there you have it- a few simple tips for saving! While these tips can be used by anyone, they are particularly effective for those who are just scraping by. But, fortunately, by following these tips, you can actually see your financial situation get a whole lot better as time goes on.