How to save fast even if you earn low income

how to save money with low income

These 6 tips will help you save quickly and reach your savings goals. Even though it may seem difficult to save during a pandemic, having a goal will give you peace of mind and help you stay on track. It will help you envision a brighter future which can increase your overall well-being. These 6 tips will help you in how to save money with low income quickly.

1. Use an envelope management system to organize your personal information

Dave Ramsey’s envelope management method is another sure-fire way to save money quickly. This involves withdrawing your monthly bank cash income (down to the penny) . Divide it at the beginning of each month into separate envelopes according to your savings goals.

This will allow you to have separate envelopes for fixed expenses such as rent and consumption, and separate envelopes for variable expenses like clothes, eating out at restaurants, shopping. It will be almost impossible to escape a budget if you only have a set amount of cash for your expenses.

How to save quickly for your home

Although it may seem impossible to save for a home, there are some simple tips you can use to make your savings go a lot faster. Let’s look at some ways to save money quickly for a house.

2. Cut your rent

Rent reduction is one of the fastest ways to save money each month. It is possible to share a flat if you live alone. This will allow you to divide your rental income by 2. If you choose to share a flat with two other people, the rent will be a third of what it is now.

If you pay EUR 1,300 per month for a 3-bedroom apartment with a roommate, and then save EUR 650 each month, that’s a savings of EUR 650. Living with two people will help you save EUR 870 each month. That’s almost EUR 10,500 per annum!

You can move to a smaller apartment if you are already living in a shared one. Rent income is often calculated according to the area occupied. This can help you save some money each month. This may encourage you to sell things you don’t use in order to make a little more money.

3. Cut in consumption bills

You can also cut down on your consumption to save money quickly. You might be able to save a lot of money by reducing your electricity and gas bills. We explain how:

Change your energy provider You can save hundreds of euro per month by searching for the lowest rates available.

Switch to LED bulbs for your lighting. LED bulbs are 75-85% more efficient and last 15-25x longer than traditional ones.

A smart thermostat is a great investment. You can make significant savings by purchasing a smart thermostat.

seals air leaks. Your electricity consumption can be increased by leaking doors and windows. Radiators must operate for longer periods to heat your rooms. You can fix these leaks by sealing them with self-adhesive tape. This will stop hot air from escaping.

4. Get a second job

It is worth looking into a second job if you want to increase your monthly savings. After work at your office, you can spend a few hours in a restaurant or bar, work freelance, be a virtual assistant or pet sitter.

You may find it tempting to save all the money you earn from your second job if you have the funds. Be careful not to burn yourself. Your mental health is more important than your savings goals.

5. You can cancel subscriptions that you do not use

Many companies make a lot of money from subscriptions. It is common for customers to subscribe to your service and not cancel it, even though they rarely use it.

This is due in large part to the sunk costs fallacy. The sunk cost fallacy is applied to subscriptions to services. It means that cancelling a subscription we don’t use often is difficult since we have already spent a lot of money on it.

To cancel a subscription would be to accept that we have been wasting money until now. We can postpone cancelling the subscription so that we have the opportunity to make use of it. Most people don’t make the most out of subscriptions. It is cheaper to cancel subscriptions now than wait for the moment when we might use them.

How to save quickly on a car

There are many options to save money for a car. Saving money for a car is easier than saving for a home. However, it is important to plan well to get behind the wheel as soon as possible.

6. Be more helpful

It is a great way to save money by fixing things yourself. YouTube and the internet allow you to learn how to fix nearly everything online. It’s cheaper to repair leaky pipes than to hire someone to do the same thing or to buy new clothes.

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