Sadly, because of the current economic slowdown, several people across the globe are losing their jobs or facing pay cuts. Are you struggling to make ends meet with your low income?
You’d be surprised to know how many people are unable to regulate their spendings despite earning a decent income. It’s not always about how much you earn, but how you choose to spend and save.
Living on a low income can be stressful. In this post, we’re sharing our top tips to keep your expenses under control when you’re in a rough financial patch.
Know Your Expenses
The first step to control your expenses is knowing exactly where and how much you’re spending. Start tracking and noting down every single thing you’re spending on, no matter how small the expense seems. To make things easier, download an expense tracking app.
Create a Strict Budget
Have you been spending without a budget? It’s possible that you’re spending more than you need to, simply because you don’t have a budget to follow.
Create a budget that includes your must-haves. It shouldn’t be impossible to follow, but still strict.
Stop Non-Essential Spending
From going out to eat to buying clothes, stop all forms of non-essential spending. Refrain from spending on things you don’t need until your financial situation improves. It won’t be easy, but it’s necessary.
Cut-Down Energy Consumption
Take a look around your house, are your electronics plugged in for no reason? When you’re on your last dollar, every dollar saved counts. Cut-down your energy consumption by working during the morning and turning off lights and electronics when not in use. Also, unplug vampire appliances.
Find Cheaper Utility Plans
Are you having trouble paying your monthly utility bills? Reevaluate all your utility plans including electricity, cable, phone and internet. Then go ahead and compare gas and electric plans in your area and find a cheaper provider. This will allow energy savings over time.
Cook At Home
When you’re scrambling to get by, you cannot really afford to spend your money on ordering food. You can easily cook nutritious and filling meals at a fraction of the cost. There are several money-saving recipes available on Youtube that’ll keep you healthy and full.
When you are trying to keep your head above water, taking out a loan might seem like a convenient cop-out. But borrowing money at such an uncertain time can make things worse. Avoid borrowing, if you don’t want to end up in a debt trap over everything else.
What’s the point of wearing branded clothes if you’re unable to put food on the table? If you have to buy clothes, it’s okay to pick unbranded options. Try to prioritise utility over glamour quotient. The same goes for grocery essentials, stick to store-brands instead of name brands.
Don’t Purchase at Full Price
Stop purchasing things at full price. Look for discount codes or wait for sale season to buy them at a lower price.
Streaming subscriptions and other memberships become a luxury when you’re in a cash crunch. Cancel those and find other forms of free entertainment such as Youtube videos and podcasts.
Start a Side Business
There are only so many expenses you can eliminate. You need to introduce an additional source of income to create some financial breathing room for yourself. Start a side hustle to bring in some extra cash. You can try thrifting and selling clothes, offer dog walking services or monetise any other skill.
Take Care of Yourself
It’s easy to let financial troubles stress you out. But remember, this is perhaps the worst time to get sick. To make it to the other side of this, take care of your mental and physical health. Try to eat healthy meals and exercise. Talk to your friends and family for emotional support.
Financial hardships are not easy to deal with. We hope our tips will help you bring positive changes to your financial situation.