{"id":2195,"date":"2017-02-08T00:15:59","date_gmt":"2017-02-08T08:15:59","guid":{"rendered":"http:\/\/www.cultofmoney.com\/?p=2195"},"modified":"2021-10-27T12:03:58","modified_gmt":"2021-10-27T20:03:58","slug":"10-low-income-money-tips","status":"publish","type":"post","link":"https:\/\/www.cultofmoney.com\/10-low-income-money-tips\/","title":{"rendered":"10 Low Income Money Tips"},"content":{"rendered":"

\"LivingImproving your financial situation while living on a low income is not easy. It\u2019s hard. Like, really<\/em> hard. But it can be done.<\/p>\n

Just a few years ago I was categorized as low income, especially considering I was providing for myself and two kids. Even though I was low income I still managed to avoid consumer debt and even build an emergency fund.<\/p>\n

These are the tips that helped me the most.<\/p>\n

# 1 \u2013 Track Your Expenses<\/h2>\n

When you\u2019re living on a low income you normally don\u2019t have much extra money left at the end of the month. If you\u2019re trying to avoid debt, save money and adopt overall better money management skills, you need to track your expenses.<\/p>\n

While it can feel a bit burdensome to track every single expense it\u2019s crucial if you\u2019re trying to save money. You can use a spreadsheet, sheet of paper or make it easier on yourself and use an app like Personal Capital or Mint.<\/p>\n

# 2 \u2013 Find Low Cost Living<\/h2>\n

The biggest budget category is hands down, housing. Your housing costs can make or break you.<\/p>\n

If your housing is currently more than 50% of your total take-home income you need to look for a less expensive place to live.<\/p>\n

# 3 \u2013 Avoid High Interest Debt<\/h2>\n

High interest debt will rob you of your future income. While it\u2019s best to stay out of debt altogether, you need to avoid high interest debt like the plague.<\/p>\n

This means no credit cards, payday loans, furniture loans, etc.<\/p>\n

# 4 \u2013 Build an Emergency Fund<\/h2>\n

Your emergency fund is what\u2019s going to help bring you and your family financial stability. It will protect you in the event your car breaks down, you lose your job, have to make a costly home repair or any other catastrophic event.<\/p>\n

Shoot to save 3-6 months\u2019 worth of your income in an emergency fund (the more the better.) Here\u2019s how I saved $10,000 on a low income.<\/strong><\/a><\/p>\n

# 5 \u2013 Negotiate Your Bills<\/h2>\n

Everything is negotiable. When you\u2019re living on a tight budget you should try and negotiate all of your expenses.<\/p>\n