It may not be easy to do, but saving some serious cash while on a low income is still possible with a few steps and adjustments made to the budget. This becomes more important when one considers how 25 million households in the United States actually live paycheck to paycheck – and saving becomes least priority.
Have a shopping plan every time
Don’t enter the mall or grocery store without a clear idea of what you’re going to buy – this will make you more vulnerable to overspending or shelling out cash for unnecessary items. Have a written budget every month, which will help you allocate your limited resources while avoiding impulse buying.
Get used items!
Look at thrift store or classifieds for when you need a new car, electronics, or furniture, and you’ll actually be surprised at the wide range of good-quality second-hand items to choose from. Go for killer deals that will satisfy your need while helping you save some cash.
Keep high housing costs at bay
Typically a family’s biggest expense, housing costs, can drain your budget quite quickly. If renting, find cheaper housing, or talk to your landlord about trading work on the property for some rent deduction. For homeowners, cut down on utility costs as much as possible, rent out a room or space in the property, and maintain the house to keep it in great condition and avoid expensive repairs.
Go for a zero-sum budget
This means structuring your budget in a way that each dollar is already allocated before you even get your paycheck. Any money left after expenses best goes to savings, such as a retirement fund.
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