3 Secret Money Management Tips for Low Income People
Hundreds of tips are there to manage or save some money. But most of them go well with the people who are already earning a good amount of money.
Whether you earn a good amount of money or less, you can save a lot if you can do the money management perfectly. It doesn’t matter if you earn thousands of dollars or a hundred; it matters how much money you have left in your pocket at the end of the day. Some good earning people do have some at the end of the day, but what about the low-income people who cannot manage their daily spending? How can they grow with little money? I have thought that, and to help you out today, I will share some money management tips for low income people. By following my money management tips, you will see the difference in the next month for sure. You will be able to do money management and, at the end of the day, will lead a stress-free life and save a lot. So, let’s run.
Money Management Tips For low-Income People
When your income is low, but you have dreams to grow, you have to do money management. After earning thousands of dollars, if your pocket is empty, you fail to achieve your money management goal, and if you have a low income and have only one penny, you still have accomplished your goal. Money management means saving some money or not but fulfilling all needs with the money you earn. For example, if you leave enjoying or entertaining yourself to save up some money, it’s not managing money correctly. Because entertainment is needed in life, it helps you forget your stress and makes you cheerful. So the way to manage money is to cut out or reduce the spending on entertainment. How? That is what we will talk about today. So be with us and learn how to do the proper money management without leaving up your comfort or wishes.
Follow Budget Strictly
Budgeting is the first thing you need to do when you want to do money management. Like we said before, I don’t think money management means leaving something altogether, it means cutting out some expenses and saving up some money or spending the money in the right way. At the start of the month, list down all your expenses: house rent, electricity bill, cable bill, internet bill, grocery list, some money for outing or entertainment, etc. all these are regular spending and you have to pay these then how can you do money managing these? This is the trick, dear. If you can spend the money on these things in the right amount, you can save; How? Let me explain how you can do money management after fulfilling all your needs. Read below.
- Housing: If you don’t have a home and live in a rented home, then a big amount of your salary goes behind paying off the rent. But you can manage it. If your income is lower and you are unable to pay your rent or have to compromise with something else, then leave doing that. You have a way to manage that within it. If you can’t afford the house rent, change it immediately. You can shift to a location where the rent is lower than the place you are living in. But if the place is far away from your workplace, then the travel cost will increase. In that case, you can add some more people to live with you. Search for a roommate if you have a one-room apartment. But if your house is big enough, I mean have more than one room then you can search for a homemade who will live in the house with you and pay half the rent, or if has three rooms then the rent cost will decrease a lot. But what about when you are living with your family? In that case, you can shift to a small house. Let your kids stay in one room; get them a stair bed that will make space for one bed but will work for two.
- Food: I won’t tell you to stop eating the food you love, nor will I tell you to stop visiting your favorite restaurants. You can have anything you want but at a limit. Didn’t understand? For example, you visit a restaurant multiple times in a month, reduce that number, and start going only one day a week. Or you are coming home, and in the midway, you felt to have something delicious that you can make at your home. Now visit a store, buy everything you need, make the dish at your home, and enjoy the meal with your family. It will reduce your meal cost a lot. You can have the meal with your entire family with the cost you had to pay for only one person in restaurants.
- Entertainment: We have told you a little about entertainment in the beginning. Let’s complete that conversation. Entertainment is an essential part of our life. It makes our life more enjoyable and stress-free. So no way to avoid this part of our life. But you can do some management with this too. If you have a cable, you can cut out that and start watching Netflix, telling your kids to turn off the TV when something unnecessary they are watching or not watching just have turned it on if you have a movie plan for a few days a month. Reduce that number and start spending time with your family by watching Netflix. If your kids are attending extracurricular activities, you can leave that and motivate them to join community activities.
2. Pay off Debt
After fulfilling your everyday needs, the first thing you have to do is pay off your debt. Some people save when they already have a debt. It’s not good manners nor good money management. For example, you have a debt of 1000 dollars, and the interest you have to pay is 20%. And the money you are saving in a bank or investing in stock obviously won’t bring more than 20%. Then what was left? The profit you are making with your savings ( some just do the typical saving, dollars under the bed) isn’t even worth paying the interest, leave alone the original debt. So it’s better to pay off your debt first. If you don’t have extra money, I mean savings, you should still consider paying off the debt. How? If you have only 100 dollars, consider paying it as debt. You aren’t paying the entire debt but reducing the amount and the interest also.
You can’t reduce the healthcare cost as it’s unavoidable but can be prepared for the future. You can maintain good health activity that will keep you strong and free of health problems. And initially, you can save a lot also. If you put a little more effort into building some good habits, you will save up a lot. How? Let me explain.
Exercise is beneficial to keep you fit. If you exercise daily, the chances of any big health problem reduce. Doing exercise in the gym is helpful, but it’s very easy to take gym courses at home these days. Why spend more when the same thing you can get at less? Online courses cost a little, reduce travel costs, and save up a lot of time to invest in earning more or personal improvement. A few more things you can do are eating less fast food; it will keep you healthy and save money; quitting smoking is better for health and saving money; sleeping early and rising early will keep your health sound and increase productivity.
Just because your income is low doesn’t mean you have to go under debt to lead a happy life with your family. If you can do the proper money management, you can live happy and healthy lives with a low income. We have told you the three secret money management tips for low income people. If you follow our money management tricks, I hope you will fulfill your needs with your low income without going into debt and paying off your past debt.