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. Save money with coupons, vouchers, discount codes and cashback.
Whenever you are making a purchase online, search for published discount codes before you place your order.
You may be able to save money by using a code that you find online, using a discount code website or perhaps by signing up to the company’s email newsletter.
Some companies offer a wealth of money-saving opportunities to help reduce the cost of any non-essential purchases.
If you are looking to shop for anything, remember to type in ‘vouchers’ or ‘discount’ after your search term to see if any deals are live.
If you want to save money on a low income, cashback is another great way to save.
Offline, look out for and save any coupons and vouchers that fall through your door. These are often forgotten about and can give great deals.
Remember to use them, then set aside the money that you have saved by being a thrifty shopper.
2. Set up a standing order
If you have a savings account but find yourself forgetting to use it, or spending money elsewhere then a standing order could help you to save money on a low income.
Create a household budget that covers your income and expenses.
When you have worked out how much money you will have left over, set up a standing order that will take the remaining money from your current account on payday.
This money can automatically be sent to your savings account so that it is no longer available to spend.
Ignore your savings account. Do not be tempted to dip into it.
Any money that goes in should not come out, except in genuine emergencies.
3. Swap memberships for one-off costs
Are you a gym member?
Whilst memberships are handy and give you access to a wide range of facilities, they can really eat through your bank balance.
A one-off expense, though a little bigger in the first instance, could save you money overall.
Instead of spending AUD50 per month on your gym membership, could you instead invest in a set of weights and a treadmill for your cardio?
You might not have as much variety, but you will have equipment that you can work with whilst you build up your savings fund.
The equipment will be yours to keep, available whenever you need it. It also becomes an asset that you can sell in the future.
The initial outlay is likely to be repaid within a couple of months if you close your gym membership account.
The money that you used to spend on your gym membership is now yours to add to your savings fund.
Remember, a AUD50 per month gym membership is AUD600 over a single year.
Investing in a bike could keep you fit and reduce the amount of time you spend in your car – helping you to save money on both gym membership and vehicle fuel.
It is not wise to apply for credit for your one-off purchases.
If you do not have the money available, consider cancelling your membership and letting the funds build up for a couple of months.
If you are in need of quick cash for personal expenses, apply for a payday loan with My Cash Online today.