Is it possible to save money with little income?
Hi! I’m Mikey Rox, and this is Spend Savvy, the super short show where I deliver money-saving tips and tricks for everyday life.
Today’s question is, ‘Is it possible to save money with little income?’
I’m not going to try to convince you that saving money with little income isn’t hard – because it is – but at the same time, it isn’t impossible.
The first step you need to take if you want to save money even if you don’t make a lot of it is to create a monthly budget that accommodates all your expenses. Once everything is accounted for, see how much you have left over. Whatever that amount is, put one-third of that amount into a savings account right away.
Of course, you have to have a savings account first – and this is one of the key components to saving, whether you have a little or a lot. Sending money into savings puts it out of sight and out of mind so you’re less likely to dip into it on a whim.
Consider cutting back on your recreational activities, too. Reduce the amount of money you spend on eating out, going the movies, and buying clothes and other items that you don’t need. Instead add up your receipts of how much you spent on recreational activities in the previous month and take the same amount and send that to savings, too.
Another tip to help you build up your savings when you’re income is low is to take inventory of all the stuff around you. I bet there are plenty of items of value laying around your house that someone else is willing to pay for. Video games, electronics, furniture, and appliances in good, working condition are all ideal items to list on Amazon or eBay in order to earn extra money to put into savings.
Another good trick to free up more funds for saving is to downsize. Can you find a cheaper apartment? Can you switch to public transportation or a carpool instead of driving to work every day? Can you cut the cable, Internet, or phone service in lieu of publically available options like free WiFi at a local café? Can you turn one meal into two? All of these downsizing ideas will help you keep more of your money to yourself.
If your income is so low that you can’t afford the expenses that you have now – leaving you with absolutely no money to save – consider picking up a second job. A part-time job will provide a second source of income, which in theory you could use as your primary source of savings income.
If a second job isn’t feasible, I would suggest changing your primary job. If you don’t think you’re making money, search for a job that will pay you want you deserve.