If you can learn how to save money on a low income, you will be able to quickly build up a financial buffer which will help protect you from debt.
Savings are important for everyone. If you can save money on a low income, you will have the security of cash to fall back on in the event of an emergency instead of relying on quick loans to save the day.
You should hopefully be able to pay less for the things you do buy, by making payments in full up-front rather than paying on credit and incurring interest.
1. Reduce your accommodation costs
Accommodation costs are some of the highest outgoings that most people ever deal with.
If you can cut the cost of your accommodation, you may have extra money to set aside in a savings account.
How to reduce accommodation costs? Downsize if possible.
Find a smaller or cheaper property to rent or perhaps consider moving to a less expensive town if you are not tied to one place by your job.
If you live on your own, consider if you really need a whole house or apartment to yourself. Renting a room in a shared property could save you a considerable amount of money.
If you own your home and have a spare room, why not rent it out or take on a lodger?
Depending on where you live Airbnb is increasingly popular with travelers and could be a great source of additional income.
You can then use these payments to cover a portion of your mortgage.
If moving to a new area or type of accommodation seems unappealing, think of it as a short-term solution to help you gain financial freedom from loans today.
If your current situation means you are regularly living hand to mouth, you need to look at ways to escape this scenario.
2. Switch your energy supplier
Gas and electricity are essentials. You cannot live without heating, hot water and lighting around the home.
There are very few things to help you to differentiate between energy suppliers, which means that switching from one to another will unlikely result in any noticeable change to the level of service that you receive.
Not all suppliers offer the same pricing packages or charge the same amount for what you use.
You can switch energy provider quickly and easily online, potentially saving AUD200 or more over the course of a year.
If you do switch and makes monthly/ annual savings. Remember to put this money aside, so you can enjoy the benefits of your efforts and work towards your overall goal of saving money fast.
3. Buy your groceries online
Buying groceries online may seem counterintuitive when you are trying to save money, but if you have not tried this recently, you might be surprised at today’s delivery prices.
Ordering food for delivery was once significantly more expensive than visiting the supermarket in person, though many now offer free delivery or charge as little as AUD1.
Benefits of shopping online include:
- You can watch your total increase as you shop – helping you keep tighter control of your spending.
- You will not be tempted to make impulse purchases as you can be when you walk around the store. Buying online encourages a habit of meal planning. You are more likely to decide exactly which meals you would like rather than buying ingredients and expecting to find something to use them for. This will keep your spending down, and provide extra space in your cupboards, fridge and freezer.
- As long as you only shop online, you will be purchasing everything you need in one go and will probably buy enough to last for at least a week. This can help you to avoid those midweek visits to the shop to pick up a few extra items. Often, these small shops are the ones that mount up to grocery overspending.
If you are in need of quick cash for personal expenses, apply for a fast personal loan with My Cash Online today.