{"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":"
Improving 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 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 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 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 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 Everything is negotiable. When you\u2019re living on a tight budget you should try and negotiate all of your expenses.<\/p>\n Buying secondhand is one of the best ways to save money and potentially get higher quality items. For instance I buy all of my clothes from ThredUp (an online consignment shop) and I get way higher quality clothes than I would if I bought brand new from the mall.<\/p>\n The next time you need to buy something new see if you can find what you\u2019re looking for secondhand first. Check out consignment shops (both online and in person,) Craigslist, Facebook, Freecycle, etc.<\/p>\n Food can easily come in as the second highest monthly cost after housing. While you\u2019re living on a low income you need to get your food budget under control if you haven\u2019t already.<\/p>\n To save money on food plan out your meals, avoid eating out and limit the amount of shopping you do.<\/p>\n At some point or another you may want to take out a loan to buy a house or a car. To get the best rate you\u2019re going to need a good credit score.<\/p>\n# 1 \u2013 Track Your Expenses<\/h2>\n
# 2 \u2013 Find Low Cost Living<\/h2>\n
# 3 \u2013 Avoid High Interest Debt<\/h2>\n
# 4 \u2013 Build an Emergency Fund<\/h2>\n
# 5 \u2013 Negotiate Your Bills<\/h2>\n
\n
# 6 \u2013 Buy Secondhand<\/h2>\n
# 7 \u2013 Lower Your Food Costs<\/h2>\n
# 8 \u2013 Keep Your Credit High<\/h2>\n