Finances

10 Smart Ways To Save On A Minimum Income

10 Smart Ways To Save On A Minimum Income. Lockdown has really pushed many people in a tight corner. Some have lost their jobs, businesses, and other have had their salaries cut. All of this has shown us the importance of saving no matter how much you earn.

Saving money on minimum wages can be discouraging, but don’t allow it to stop you from reaching your income goals. Here is how;

1. Get And Stay Out Of Debt

Not only does accumulating debt mean that you have more in monthly payments to make each month, it means that you’re delaying financial freedom thanks to interest payments. Make it a priority to tackle your debt. It will take commitment to erase your debts, but it can lead to an easier life.

2. Draw Up A Budget And Stick To It

Unless you have a plan for your money, it can be extremely easy 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. Something as low as a hundred rand a month can go a long way.

3. Find Cheaper Housing

Housing costs are usually the biggest expense a person can incur. Between rent payment, the cost of utilities, repairs and upkeep, housing costs can drain a budget quickly. By keeping housing costs low and not buying or renting more than you can afford, you’ll have more money available for saving.

4. Evaluate Your Car Costs

A car can come with thousands of Rands of annual upkeep and maintenance each year. In addition to a car payment, you also have to contend with several other expenses. Car insurance and repairs are just the tip of the expensive iceberg. Make sure you get a car that can make your life comfortable enough for you to save.

5. Increase Your Income

Another way to create savings in your current situation, is to increase your income. Although it is not as simple as it sounds, increasing your income is completely doable. This can be done through a side hustle. Think of a money making hobby you can do to increase your income without taking a leap from your day job.

6. Avoid Buying On Impulse

Many times budgets take a hard hit and savings suffer due to unnecessary expenditures. There is always the temptation to buy unnecessarily. Make a commitment that you’ll only buy when necessary until your savings account is built up to a comfortable level. And when you do need to buy, work to buy used if possible or to at least buy on sale.

7. Keep Entertainment Costs Low

Eating out, hitting the bar after work, going to the cinemas for the latest movies and other entertainment purchases can add up to a big dent in your budget pretty quickly. If you want to go out, then find out if there are any free or low cost community events that you could enjoy before springing for an expensive night out.

8. Get Creative

You can save a lot of money by doing things yourself. Do you spend a lot on beauty products? Try making your own creams, cleansers, and bath products. What about cleaning supplies? With simple, inexpensive items like vinegar, baking soda, and essential oils, you can make most of your necessary household cleaning items yourself.

9. 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.

10. Make Saving A Priority

Making it a point to safe every months can take you a long way, no matter what your income is. By having a specified amount come out of your income and into a savings account before you even see it, you’ll simply adjust to living on less and start saving money with little to no effort on your part.

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