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It’s a new year and your resolution is to save some money. However, you are faced with the challenge of having a low income. This post got you covered. You have made the best resolution ever and nothing should stop you. Today you are going to learn how to save from a low income.
Before heading to the business of the day, I would like to say saving is underrated. If there is anything that should be over emphasis when it comes to personal finance and income growth is saving. There is no single disadvantage to saving money and if you have any contrary opinion I would like to hear it. Hence, do me a favour and drop a comment. However, your income amount shouldn’t determine if you save or not as it is possible to save from a low income.
What does Saving mean?
Rather, what does it mean to save? To save simply means to keep some percentage of your income which won’t go into your expenditure. This could be done over a short or long period of time. There is no fixed amount to how much should be saved from an income because we all earn differently. However, there are ways to save money that have proven to be extremely effective over time. It worked for me because I am a low-income earner( for now) too and I have no doubt it will for you.
BENEFITS OF SAVING MONEY
i. Helps in an emergency. Have you ever felt insecure because you have no single cash on you or in your account? I have been there and it sucks. You know if a problem should come up that needs cash you are doomed. Hence, having backup money in your saving keeps you secured.
ii. Saving money helps you limit debts. For me, this is the best part of saving. Debts are horrible and if there is one way to stay out of them is by saving money. Read this to see how my savings saved me from going into debts.
iii. Savings can sponsor your vacation. yippee! It might not be that fancy cruise on a yacht or that exotic Island but it can take you somewhere beautiful to cool off.
iv. Saving gives financial freedom. There is so much you can do with your saving which in turn can help grow your income. I once started a small business with my savings and made some extra income.
If you never knew why it is important to save now you know. Therefore, it’s about time you start. So let’s dive into our main business for the day.
You can’t save if you don’t do the following:
1. Psychologically prepare your mind to save because you need to discipline yourself on how you spend.
2. Never spend without a budget. Make a budget for every single income you earn, no matter how little. Accountability is key to saving successfully.
3. Plan on what and how you will spend your income. You definitely have that big project in a year that you would want to finish or start. Plan on how you will execute it based on your earning.
Effective ways of Saving from a Low Income
A. When paycheck comes in: We all have different jobs and how we get paid. This works with pay dates. Do you get paid daily? then you save daily. Remember, there is no fixed amount to how much you save. Hence, if you can afford to only keep 2 cents every day then 2 cents it is. If you get paid today, for instance, don’t wait until tomorrow to keep aside that 2 cents. Do it right away.
Avoid random saving so you don’t run into debt. However, if you run a small business with a daily inflow of cash then you can save randomly.
B. Choose the ways you want to save: This should be first because without a way/method of saving you might not effectively save. You are having a low income remember? Hence, you need a way to quickly keep that money aside so it doesn’t find it way back into expenditures.
My number one way to save is using a piggy bank or a save you can’t open so easily. So once the money gets in there, there is no way of going out. However, there are other very effective ways to save. check it out!
The best part about the different ways to save all thanks to technology is this. There are apps you can use which helps you save.
C. Be Consistent: Little drops of water makes an ocean. Also, little drops of money make a bundle. My quote might not be correct but I hope you get the message.
We are trying to save from a low income, right? Which means we are not putting much away. Hence, if you are not consistent at the end of the day you will have little or nothing to show for.
Therefore, be consistent whether you are saving daily, weekly or monthly.
Know what it means to save
Know why it is important to save
Have some positive change towards your finance
Put into practice the effective ways to save from a low income and watch how you do well with your personal finance.
Share this content if you found it helpful and drop a comment if you have any questions.