The rich get richer and the poor get poorer, this it the reason why the topic of money should not only be taught in school but also in each and every child’s house. Many people learn how to manage money by their parents. In a poor family, if a child asks what is money or how should we manage money, the only thing a parent can tell is “go to school and study nicely”. There are chances that the child might study hard and pass out with good marks but what about the economic program or mindset, it will be still be same as a poor persons mindset when it comes to money management.
Here are some tips to low income family on how to manage money
If you are trying to save money on a low income, it can feel like challenge. But don’t let a low income stand between you and your savings goals.
- Build a budget that works for you-Budgeting might sound like more trouble than it’s worth, but it can help you to build your savings. 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 aimlessly saving what’s left over each month, you can meet your savings goals through careful budgeting. Learning how to budget is essential when it comes to how to save money on a low income.
- Lower your housing costs-Housing expenses can be one of the biggest expenses. Image if you could cut down your housing expenses by a few Rs.500 each month. That money could make a huge difference in the size of your savings and overall quality of life. There are few ways to cut your housing costs including: A.) Move to new location-Location is a key detail in real estate prices. B.) Rent your rooms-If you could have more space in your home, you could rent them out to offset your housing costs. This is a great way to house hack. Consider a long-term tenants or short-term rentals, we can earn money from it.
- Eliminate your debt-Debt can hold back from achieving new financial goals. The constant financial strain on your budget can leave no room for savings at the end of the month. Make it priority to tackle your debt. It will take commitment to erase your debts, but it can lead to an easier life. You will be able to put the money you were using for debt repayment towards your savings.
- Be more mindful about food spending-Food spending can wreak havoc on any budget. With the constant temptation to eat prepared food at a restaurant, sticking to a food budget can feel like an impossible challenge. However, this is a good area to really focus on when it comes to how to save money on low budget or income.
- Automate your saving goals-Making the choice to save money can be difficult. Forcing yourself to make that same choice many times each month can be unrealistic. You are more likely to spend all of the money in your checking account. Unless you move your savings automatically, you risk spending your intended savings.
- Find free or affordable entertainment-One area of your budget that is entirely variable is your entertainment budget. You have the power to overspend in a big way with entertainment. On the flip side, some frugal fun can allow you to pad your savings without feeling deprived.
- Go to the library- The library can be a great source of free entertainment. But it offers so much more that it deserves its own mention. Of course, you can check out books, movies and CDs. But most librabries often have many more. There might be community events, free local attraction passes, seeds for your garden and more.
- Take care of your health-Health care is expensive. Unfortunately, there are not too many ways to cut down on your health care insurance costs. However, a preventive attitude about medical problems cam help you save money and enjoy a higher quality of life. A few ways to practice preventive healthcare include exercise, eating right, quit smoking, sleep enough.