Home Finance and Budgeting Salary Earner And Savings: Living on a Low Income Tips

Salary Earner And Savings: Living on a Low Income Tips

by Cynthia
Salary Earner And Savings

With the current economic situation of the world as a whole, saving money can be a really huge herculean task, especially as a salary earner.

Upon graduation from high school, you had hopes of securing a good job that would help you to save to get a good home, buy things you have always craved having, and above all start a family of your home. You may also have had the thoughts of ensuring that your family especially your kids enjoy the best things in life.

Suddenly, you find yourself unable to save after receiving your paycheck. Oh- I will ensure I save from the paycheck I receive next month and when the next month arrives, you still are unable to save a cent.

This and many more are the daily and monthly challenges faced by individuals who earn on a monthly basis. This article is for you to know that you are not alone and neither are you a failure but things do happen. But do you know that with consistency and dedication, you can begin to set a certain sum apart monthly?

How to Save as A Low Income Earner

Saving from your monthly income is possible if you set your mind to it. There are different ways in achieving this.  There are many different finance and budgeting apps you can download on your phone to fix a certain amount to be remitted monthly.

You either do this directly from your bank account or you give access to the finance app to deduct directly from your bank account. The amount to be deducted will be controlled by you. The best part of this saving option is that, while you save, you also get a daily interest depending on the app you download. There are many fraudulent apps out there and you need to make your findings to know the best to go for.

Another method is to strictly budget before you receive your paycheck. Many people make the mistake of budgeting based on the salary received. Do not fall into this category. Therefore, before the arrival of your check, ensure you have listed all the important items needed by you and your family. Ensure you prioritize your savings. The most important must come first. If you pay a monthly mortgage for your home, then let housing come first, then you can add others like food and important groceries.

In addition to this, you can consult with your company’s payroll administrator to automatically set up transfers and withdrawals from your checking account into your saving or investment account. In this case, you’d be left with planning on what you have left after all deductions.

Do you track your spending? We all assume we spend a certain amount of dollars on a particular item not knowing that we do actually have spent double of that. Many people make the mistake of spending without tracking or writing out the money spent. When you begin to take this seriously, you’ll discover you have been spending a larger part of your income on things that are really unnecessary. So, the advice is to get a notebook specifically for this process to track your expenses to have enough left to save.

Who are your service providers? You need to evaluate your service providers to be sure they are actually providing the value you pay them for. Many people make the mistake of going with brands that have little or nothing to satisfy their customers. Why not review this to save you some extra money. How about cutting down on phone expenses?

Before the advent of WhatsApp, you’d agree you spend so much on call cards. But with the different social media apps available now, it is easier to communicate with our loved ones without having to spend so much on call cards, thereby saving you some extra bucks.

Conclusion

As a salary earner who is out to ensure he enjoys his life and also have left to save, you must inculcate the habit of living frugally. Frugal living does not mean or make you cheap. it is the best method of ensuring that your finance and budgeting is put in check

Photo by Karolina Grabowska

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