How to save money on minimum wage – 12 Saving tips
saving money is the crucial aspect of living in this Society you need to save for rainy days medical emergencies retirement I could go on and on it may feel stressful and futile to try and save when you’re making next to nothing but don’t be dissuaded there are small steps you can take to build a respectable savings account so follow along to learn more also if you’re interested you can download my free savings and budgeting guide which also contains a bunch of useful savings tips now let’s get into it
1. High interest debts
number one tackle High interest debts first before you start thinking about saving your money you must first consider eliminating debts that will slow you down towards your goal I’m specifically talking about high interest loans including your credit cards your personal loans if you’re thinking just how in the world am I going to start paying off so many debts and be done in time to start saving well it’s easy just start by paying off the costlier debts and work towards the smaller ones in other words prior prioritize your payments you’ll be amazed at how relieved you’ll be once you’ve paid off all your debts since you won’t be worrying about both trying to save and paying off loans
2. Cut down your bigger expenses
cut down your bigger expenses heard of the phrase living below your means well it’s a fantastic motto to live by many times the biggest expenses are the ones we don’t even think twice about think of rent for example if you can afford to move to a cheaper place I’d encourage you to do so you may even have to give up your Independence for some time and move in with flatmates assess all of your expenses and cut back in areas that you don’t really need to be spending as much on
3. Take advantage of free money
take advantage of free money did you know that low-income families are exempt from paying earned income tax the IRS reports that when you’ve earned income tax it’ll act as a refund to your taxes what does this mean it means you’ll have more of your salary to take home on a good day you can expect a couple extra thousand dollars to come your way a good place to start is choosing the right 401k and all you need to do is check and see if your employer will match your donation up to a specific proportion if they do reap the benefits and save up all that extra money into your retirement fund now I know you might be tempted to use use that money to buy a brand new TV or the latest iPhone but don’t be tempted the whole point of this is to save and that’s exactly what this extra money is for I mean think of the awful buyer’s remorse you’ll be suffering with once you get your new Gadget all the while having an empty savings fund yikes
4. Start a side hustle
nobody in this day and age is going to be financially free with just their nine to five alone that is unless they’re like a CEO or something but even then you need to start a side hustle to supplement your full-time job and the fun thing is that it can be very easy let’s say you’re a fantastic cook you can start selling your food and make some extra cash you can take it a step further and start teaching cooking classes the great thing with both these ideas is they can be done from the comfort of your own home and just like that you’ve got some extra cash handy while your money from the nine to five pays for your day-to-day expenses use this side job money to save and even invest
5. Start a budget
okay I’m going to get straight to the point with this one follow the 50 30 20 rule fifty percent of your money should go towards your Necessities rent groceries Etc thirty percent for your wants and twenty percent into your savings the one major tip I’ll give you is to properly identify where your thirty percent is going to don’t just mindlessly spend it away create a wish list and organize it from what I want the most to ma if I don’t get it I’ll still be okay save up towards whatever is at the top of the list and buy it this way you’ll cherish and value it more
6. Avoid Bank fees
putting our money in the bank has been considered one of the best ways to cut down on impulsive spending because the money isn’t available the moment it’s needed unfortunately something we weren’t told is that Banks also come with a few disadvantages Banks typically charge a fee based on the type of transaction the larger the amount the more the fee Additionally the needed minimum balance must be kept at all times to avoid having to pay extra fees with your hard-earned money candidly speaking it does seem unfair if you already have an account don’t spend more than you have to you can also sign up for a direct deposit because it’s always free when your money is banked in automatically another alternative is opening multiple accounts at your bank
7. Stay healthy medical insurance
or any medical fees for that matter are expensive Health really is wealth and you need to make sure you’re taking care of yours all the time taking care of your health ranges from modifying your diet to cutting out alcohol and smoking your mental and physical health is your biggest asset so take care of it to the fullest of your ability
8. Follow the money
the dream area to live would be a place with low rental costs but High minimum wage we’ve already talked about moving into a place with lower rent and splitting the rent amongst flatmates now you want to also make sure the new area you’re moving to has a higher minimum wage rate than your previous area striking the right balance is key alternatively you can get a good house with a good mortgage you can choose to rent out the unused space and use the money to pay for the mortgage
9. Don’t expand your family
let’s cut to the chase kids are expensive raising a family comes with a lot of responsibility and you need to properly think about those before you start one of your own this not only means holding back on having children until you can financially afford them but also taking your time and picking a partner who’s financially literate and responsible
10. Swallow your pride
we all need help the biggest lie of this Society is that of the self-made man I’m willing to bet all my limbs that someone who labels themselves as such has gotten a ton of help during their Journey you deserve help as well obviously financial help is the main aim but even going to your local food bank is enough don’t worry about looking weak because you need support don’t give in to the myths of society and allow yourself to be helped as needed
11. Avoid automobiles
aside from helping the environment you’re also doing wonders for your wallet by ditching the car and opting for public transport instead from gas money to regular maintenance owning a car is scarily costly you can also kick start your health journey by getting a bike instead or walking around town if possible 12. Get a change jar
how many times have you noticed a few extra dollars and then decided to waste it away on something useless I know I have and I’ve done it multiple times instead of impulsively spending your money get a clear jar and put in your extra pennies and notes into it over time your jar will fill up now you can do one of two things save or spend it on something from your aforementioned wish list no prizes for guessing which one I’ll tell you to do it may seem daunting and stressful to try and save while making minimum wage and this is where self-reflection and adequate financial literacy comes in take your time build these practices and use your money wisely slow and steady wins the race so don’t feel pressured into having to save your money straight away tackle each issue one by one and before you know it you’ll have a hefty balance in your savings account well folks