People who earn less than $1,500 on a monthly basis can find themselves facing tough situations and choices especially with the sky high costs of various products and services these days. If you use up all of your monthly income without saving anything, then you will be living paycheck to paycheck, which isn’t a very safe way to live.
You never know when emergency situations can arise and one must always have some savings for the rainy day to assist them and be their saving grace when they need the money on an urgent basis. Mentioned below are 5 ways by which you can get through the month with such a low income and also save some of the money in the process:
Draft Your Budget and Spending Plan
Prepare a budget so that you can get to know your financial standing and how much money you actually have, before spending it all. Keep a track of all of your credit and bank statements and don’t forget to keep the receipts of the items that you pay for using cash. This is a good way to know where your money is going and try to cut back on things that are unnecessary.
Your basic necessities should be fulfilled first like payment for food and rent, payment of utility bills and fuel expenses for your vehicle or the payment for public transportation. This is a good system for providing you with a snapshot of your financials.
Prepare Yourself By Saving
Always remember to keep a little bit of money every month for emergencies instead of spending the money on shopping for items that will just be lying in your closet without being used. Every month, set aside some money no matter how small an amount. Be it $30 or $50, take it from your paycheck, and put it in your savings account.
When you get into this practice of setting aside the money, before you know it, you’ll have some cash saved up, all thanks to your monthly saving goals.
Avoid the Accumulation of Debt
Sometimes, you can’t help it, but whenever you can, try your best to avoid getting into circumstances that can lead to the creation and accumulation of debt. With your spending plan before you, you will have a much clearer picture of the current debt you owe, and your first goal should be getting rid of that outstanding amount from your financials by paying off your debt.
Try as much as possible to stay away from taking loans frequently, unless it is absolutely necessary. Because with loans and borrowings, interest charges come along that can, at times, reach unimaginable heights, as it is with payday loans.
Control Your Expenses
Even though you live on a low income, it is still possible to have a decent life and one way of doing so is by controlling your expenses. Have a look at your budget and spending plan and try to start spending money wisely.
If your rent is too much, try to move to a cheaper apartment, spend less on alcohol and recreation, and avoid buying fancy things and luxury items that are expensive but serve the same purpose of things that can be purchased at cheaper rates. When you’re not around your house, turn off the lights so as to save some money on your electricity bills, and if you’re a smoker, try to cut down on those cigarettes; they are costly apart from being bad for your health.
Find Ways of Boosting Your Income
Earning some extra cash is always helpful and if you are able to incorporate it in your schedule without getting exhausted and drained, then try finding a part time job.
Another way of boosting your income is by making money by focusing a bit on your hobbies. Photography, gardening, baking, etc., can get you some extra cash, plus, if you are learned and skilled at playing a musical instrument, you can earn some money by giving some teaching lessons.
Following the above mentioned methods, you can get by on a monthly income, as low as $1,500, and find creative ways of saving as well.
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