Surviving on a low income is challenging but not impossible. If you find yourself in such a situation, it comes down to being proactive with saving money. Covering your essentials like food, shelter, and clothing with moderate-income should be your priority.
Without a doubt, this might be hard on a low income. However, little things here and there can go a long way in helping you survive. Cutting back on unnecessary expenses and being creative with sources of income can help improve your financial situation in such a category. You should also read about personal finance article from here.
This article will shed light on six handy financial tips to help you survive and save money in a tight financial situation.
- Automate Your Savings
You barely have enough to live on, so savings might be the last thing on your mind. As a result, this might be difficult to achieve even with strict financial discipline. Chances are, you will have expenses every month that will require you to exhaust your paycheck.
However, automating your savings can prevent the risk of spending the money you intend to save. Arrange an automatic transfer to your savings account with each paycheck. This gives some form of peace of mind knowing you have something set aside for the rainy day.
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- Get Rid of Unused Memberships and Subscriptions
While keeping fit is a good idea to put your health in order, some people hardly commit to their gym membership. Besides, you do not need a gym membership before you exercise. If it weighs down on your finances, go for simple and cheap alternatives. Consider some sit-ups, push-ups, and a jog down the pack rather than a gym subscription.
In the same manner, you should rethink every membership subscription that is weighing down your finances. There is a huge chance you are neither watching all the streaming content nor reading every paid magazine you subscribed to. Cancel such and find other less expensive ways to catch fun.
- Consider a Free Bank
Many people pay substantial unnecessary fees without even realizing it. Banks add such charges, and we hardly count it since we think it is insignificant. However, a Consumer Financial Protection Bureau report revealed that the average overdraft fee at most banks is around $34. When you add this to other banking fees, it can significantly sap your finances.
Go through your bank statement for any excessive fee that is recurring. The presence of such might be a red flag to close such accounts and consider other banks that advertise free accounts without any cost. It is an opportunity you should take advantage of, as the savings will be worth it in the long run.
- Consider shopping at Thrift Stores.
Shopping at a close second-hand shop can help you save significantly when on a low budget. Many of such clothes retain outstanding qualities. Besides, thrift shops do not sell tattered clothes or something of a despicable quality.
It is possible to find expensive and high-quality cloth brands at many of such second-hand stores. It is not uncommon to come across many new clothes with tags on them. What’s more? Buying in bulk can give you impressive discounts. This will open up your eyes to the incredible savings that come from buying second-hand clothes and what you have been missing all this while.
There is no discrimination for wearing such clothes, and no one will find out where you got them from. Consider this another golden opportunity to save money.
- Consider 0% balance Credit Card
It is common for people to be slammed with massive interest on credit card debts. This further adds to the financial burden. As a result, the best bet might be to consider a 0% balance transfer deal for your credit card.
You will not have to pay any interest on the debts you transferred for a given period. This gives you a golden opportunity to take care of any funds you owe. However, this is not a lifetime offer as the 0% deal expires when the promotional period ends. As a result, ensure to pay off the debt before this time.
It is possible to access the Money Compare Credit Card comparison table that gives you information on all available credit cards. You get to compare large and small providers and deals based on the savings and qualities of the service offered.
- Review and Get a Better Mobile Phone Deal
Check if you are not spending unnecessarily on internet subscriptions, calls, and text services. Fortunately, there are hundreds of sweet deals you can get for your mobile phone. As a result, you need to be diligent in sieving through them all to get the perfect one.
It is possible to get a pretty sweet deal, way better than what your existing subscriber is offering. Many mobile phone services might not be so keen on giving existing subscribers a better deal. Most are only keen on attracting new customers. As a result, ramp up your research skills and look for better and cost-effective mobile phone deals.
Simple tips, here and there, can go a long way in helping you survive when in a tight financial situation. As the efforts start yielding, you can consider the more challenging money-saving tips like paying your mortgage. However, make simple changes to your goal first.