4 façons faciles d’économiser quand on a un faible revenuJuly 27, 2017

5 Simple Ways to Save Money with a Low Income

The best way to start building wealth and stop living from payday to payday is to start saving money right now. This can seem impossible, especially for people who earn a low income. The mistake that most people make is that they think that they are failing if they are not putting a significant amount of money in a savings account every month and keeping it there. However, this is only one aspect of a successful overall savings strategy.

If you can change some of your spending habits, then you will have money to save each month. By focusing on changing these habits instead of on the amount of money that you deposit into a savings account each month, you will be better off in the long run. Your good spending habits will always keep you on track.

Here are five simple ways to save money, even if your salary is modest.

1. Lower one bill each month.

You can have more money month after month if you lower your regular (monthly) bills. Perhaps you could sign up for a slower internet service or switch to a prepaid cell phone instead of having a monthly contract. Each change like this might only save you $5 per month, but that is $5 more that you will have every month. If you can do this with multiple bills, it will really add up over time.

2. Buy generic.

When shopping for basic things like breakfast cereal, shampoo or toothpaste, you can opt for generic brands, which often have the same ingredients as name brands but cost less. You may save $0.50 or $1 each time you do this. If you can do it with multiple products, the savings will add up over time.

3. “Do it yourself” whenever possible.

This could mean trying to make basic home or car repairs by yourself before calling a professional to come in. You could learn to change your car’s oil, for example. If you are not mechanically inclined, you could use the same do-it-yourself approach in the kitchen. Buy loose tea and make your own iced tea instead of buying bottled iced tea, for example.

4. Do not use a credit card if you cannot pay off the balance immediately.

Credit cards are the best way to build a positive credit history. However, if you keep a balance month after month, you are actually losing money because you are making interest payments as well as paying off the principle. If you already have debt, make a plan to pay it off, but do not create any more debt by continuing to use credit cards. If you must borrow money, consider an online personal loan instead of a credit card.

5. Prepare for unexpected expenses.

You will have to make unexpected purchases or pay for repairs at some point in your life. This can be frustrating because it could cause you to dip into your savings. Instead of doing this, you can apply for an online personal loan. These loans are easy to get, even if you have a low credit score. You can then pay off the loan using your salary instead of dipping into your savings. So, in a way, by doing this you are saving your savings.

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