Saving money is not easy and unfortunately, not everyone will be able to. We have done some research and put together some tips to help those on low income put some money away.
- Create a monthly income-outgoings budget spreadsheet and track every amount
- Rent a part of your house out. If you are willing to lose some privacy then a tenant or house share may free up some money and help contribute towards rent payment.
- Buy everything second hand. This does not only apply to your car but also your household furniture, toys and even clothes.
- Avoid going into debt. Just because someone else has something, it doesn’t mean you have to go into debt to have it too. Borrowing money can be tricky as you have to be certain you will be able to pay back when due. Also, if there is interest attached to it, it may present more of a challenge than anticipated. Make sure you calculate and be upfront about when you can pay back a loan to your lender. As a rule of thumb – borrow only as a last resort.
- If you have the time, why not get a 2nd job? It can be something for a few hours that does not affect your full-time day job. Though time-consuming, it presents the advantage of another stream of income.
- Prepare homemade lunch for yourself and your family. This way you know you will have good food at the fraction of the cost.
- Entertain yourself. Rather than going out to watch a film at the cinema, why not try something for free but as much fun? Try going on walks, cycling or catching up on a good book – these are healthier and can be cheaper too.
- When shopping, make a list at home and stick to it. Avoid shopping for “wants” and just stick to “needs.”
- Set yourself savings targets. Having something to aim for will keep you disciplined in managing your spending.
Please remember that individual and family needs are different, so plan carefully and try to stick to it. Unfortunately no one can plan for unforeseen emergencies, but we can prepare for such things.