I’m going to be sharing with you tips on how to save money. These are all tips and strategies that I myself have learned from personal experience. This topic has been on my mind for quite a while and I really want to share with you guys how I save money. Are you trying to save up to buy your first home? Maybe your first car? Are you a low income earner? Perhaps you constantly have to keep an eye on your earnings and move around your budget, and never able to relax and financial peace of mind. If that sounds a little bit like you, you might just want to keep on reading.
Advice for Low Wage Earners
Here’s a little bit of a back story. I’m a low income earner, always have been. I work in the hospitality industry and everybody knows it’s not the highest or most glamorous paying job. I do enjoy it and I’m actually really really good at it. My husband is a small business owner of a dance studio here in our town. To paint an overall picture, we’re not exactly raking in the money.
Here are tips on how we have been able to manage our budget, our incomes, be debt free and have financial peace of. To preface all the tips, the biggest thing to remember is that your income is your greatest asset. You’ve got to manage it wisely. Once you’ve got your income, you’ve got to spend it wisely, because once you spend it here and spend it there and everywhere, it’s no longer yours. You’re never gonna see it again. It has now become someone else’s income. Now that I’ve got all that out of the way, let’s start with tip number one.
Establish a Budget
You must establish a budget. Put some serious time aside, sit down by yourself or your partner, and work out what your necessary expenses are each week. Typical expenses include rent, groceries, fuel, internet, phone and other recurring expenses. What is left is your budget, what you have to work with and put aside in order to save money. That brings us to point number two.
#1. Directly Deposit A Percent of Your Paycheck
That money that you have left, put that money aside. The extra money you have remaining from point one above. You already know you need to buy food, pay rent, put gas in the car and pay taxes with the money that remains. Whatever is left over, put it into a savings account. Estimate how much that amount will be, and have it go directly to your bank account without you ever touching it. Set up a direct debit so a certain amount automatically goes into that account.
#2. Out of Sight, Out of Mind
The account shouldn’t be easy to spend from. Just think of how much you could save if you didn’t leave it in the easy spendings account and put it aside, and that way you know exactly what’s left for you to work with for other expenses that might come up, or whether or not you can afford that extra little treat that week. I always say out of sight out of mind and that’s definitely true when you don’t see that certain amount of money in your spending account and have it in a savings one.
#3. Set a Short Term Savings Goal
My third tip is to aim for a short term savings goal, even if it’s six months one year in the future. I always find that I save more successfully when I have something to work towards. When I have a goal, when there is an end in sight, you know what your budget is. To always make these goals attainable, you can aspire — but be realistic or you could end up feeling discouraged or defeated.
#4. Don’t have the money? Don’t buy it.
The fourth tip is that if you don’t have the money, don’t buy it. Taking out small loans to buy the newest and latest model of something is not going to do you any favors in the long term. Avoid things that allow you to pay later. The temptation of having that item right now and then paying later could have the potential of getting way out of control, way too quickly. Before you know it you can have small debts here and there that could very easily turn into one large shopping debt.
#5. Plan for Events
Fifth tip, plan for events. If you know you have an event coming up, like a concert, a show or where you need to spend the weekend away, or if you’re obliged to pay for something, set aside an amount for that each week. Whether it’s $20 or $50, small savings put aside are always less noticeable in your account then a huge chunk of money gone in one weekend, due to poor money management. You’re going to end up spending that money anyway so you may as well put it aside once you know that event is planned.
#6. Have an Emergency Fund
Tip six is to have an emergency fund. This can make all the difference. Having that safety net is definitely the price that you pay for having peace of mind. This is the amount that you’ll put aside each week in case of an emergency. My husband and I, for example, count this money that we put aside in our safety net as part of our expenses each week. We make a point not to use that money, because that’s for our safety net. Whether it’s $50, $100 or $150, whatever you can spare, put it aside instead of spending it on eating out or junk food or some frivolous thing that you’ll never get benefits from in the long term. The emergency fund is there for just that emergencies, so when you do use it or take any money out from that remember to always replenish it.
At Kiwi Cash, we understand it can be a difficult getting ahead when you’re in debt. Our guest blog posts provide many great solutions that can help you financially in the long term. They focus on making money, saving money, investment and credit repair. Continue reading for financial tips and tricks that will help you quickly repay your payday loan.
#7. Save All Your Coins
Tip seven is actually quite easy. Save all your coins. I’m serious, any loose change that you have. Everyone’s got them floating around in your bag, in the bottom of the car, in the corners of the bedroom somewhere under the bed. Even those random bits and bug containers in baskets that you know everyone has one of them laying around the house, take all that extra small change put it in the cash tin, a flower pot or a piggy bank. At the end of the year, you just might have saved enough to buy yourself an extra nice Christmas present. It worked, I know because I’ve done it. At the end of one year I had $300, all because I saved my extra coins.
#8. Use the 24 Hour Rule
Tip eight — use the 24-hour rule. This means, before making a purchase, take 24 hours to think about it. Avoid trolling online, shopping sites at 2:00 a.m. in the morning because everyone knows that you have a diminished sense of wise judgment at that time of the morning. For me, the 24 hour rule would apply when I want to make purchases, like for example, a new camera, some equipment for my filming, maybe even a laptop or a new makeup release that I’m really really wanting to get in on. Not smaller expenses, but closer to $100 to $200 sort of expenses. You have to think about it first. I’ve done this many times, where I’ve been doing some online trolling past midnight and I’ve put items in my shopping cart, and then I stop and think about it and think I’ll continue this in the morning. I go to sleep, when I look at the shopping cart again the next day I think, “Oh I don’t need that”, or “That doesn’t look as good, I can do without that one”. Giving yourself time to think about these things before making the purchase will also allow you time to do some research about it. This allows you to make a more informed decision before you go and spend your hard-earned cash.
#9. Consider Hours Spent Earning an Item
My 9th tip is to think in terms of how many hours an item would cost, rather than how many dollars. As a low income earner, I do this all the time. No matter what job you’re in, think of that difficult client, the rude customer, the workplace that everyone will inevitably face in one way or another and to consider whether or not this purchase is worth it. For example, if you get paid $20 an hour and you want to buy $100 worth of makeup, I ask myself is working those five hours really worth it? Is the product that I’m getting really a reward for those hours I worked? Will they give me joy? Will it give me long-term benefits? Are you weighing up the items to the hours that you worked? If the answer is no, then you’ve got your answer.
#10. Sell Items on Facebook
My tenth tip is something that I do all the time. Sell your unused items on Facebook or Gumtree. I periodically go through my unused makeup items, and then sell them all together as a bundle. There are usually people out there like me who are willing to go and spend $200 on a bulk of something, because bulk means savings. Just like that, I have extra money that I can put aside for fuel or groceries that week, or even more makeup.
#11. Don’t Always Get the Newest Model
The next tip — you don’t always have to buy the newest and latest model of anything and everything. In fact, you don’t even have to get brand names. We live in an age of consumerism, where there will always be someone selling their lightly used computer, cell phone or car. These items will be used at second hand pricing, even if they are lightly used. Sometimes, even brand new clothing can be bought at a discounted price. My husband and I buy a majority of our clothes from op shops and we’ve found some great deals. You just have to know how to comb through the shelves, and when you’re on a budget like me, you learn pretty quick.
#12. Don’t Buy Cheap if Expensive is Better
Don’t buy cheap for cheap the sake of it being cheap. There’s budgeting, and then there’s investing. My husband and I wanted to buy a brand new vacuum cleaner, and one of us wanted to spend $100 on a cheap Target one. The other wanted to spend $380 on a Dyson vacuum. I’m not going to say who wanted which, but after a bit of convincing we finally ended up buying the 380 dollar Dyson, for a longer return in life and quality. That was a few years ago, now and it’s still going strong.
#13. Final tips
Here are a few other small tips that I do on a daily basis.
- Take a packed lunch to work with you.
- Don’t buy restaurant food (compare with how much it would cost to make yourself).
- Look for grocery sales, and try to use coupons.
That’s all my tips for today. My husband and I are debt-free. We own our cars. We are well on the way to being able to buy our first home. These are all things that we both practice in our daily lives, so if someone is on the lower end of income earning, if we can do it then so can too. It is possible to live within your means. We don’t have very much, but we do have peace of mind of being debt-free and financially stable. Honestly, what price can you put on that? I hope these tips are helpful to some of you. Thank you so much for reading.
I publish videos at my Life As Kikay! Judie here, helping you with all your beauty and lifestyle queries! I create videos on product reviews, makeup tutorials, and lifestyle advice with the aim to entertain, educate, and enrich your life, so if you’re new here, consider subscribing!