Budget Brokers: How To Save On Limited Income

Saving money is something everyone should do.

More importantly, saving money is something everyone can do.

That “can do” attitude is so important, particularly for those individuals who are on a limited income, don’t exactly make a heaping salary but still have to account for the same expenses (car, home, utilities, etc.).

But just because your income isn’t overwhelming doesn’t mean you’re excluded from saving money or the process that is involved in it.

Having a budget is universal with a little number shuffling and shifting based on your specific situation. The simple equation of income versus expenses means that you just have to be that much more creative with the almighty dollar, but nothing else really changes.

The most important advice you can follow as far as saving money goes is to do one thing consistently: pay yourself first.

That mindset isn’t about your bi-weekly or weekly paycheck but rather taking the money you earn and putting aside three to five percent into a savings account, almost as if you’re allowing yourself to be paid from your paycheck. This process is the very first you should do when budgeting, and then work with whatever is leftover, almost as if the money you’re paying yourself didn’t exist to begin with, and that is how you should always view it: untouchable.

Whatever is remaining after you’ve “paid yourself” is then the total dollar figure you have to work with once you start deducting expenses that you need to live.

Those include mortgage or rent, car payment, groceries and utilities (minus cable and cell phone). Everything beyond those four major expenses are debatable, and as far as cable and cell phone goes, don’t be afraid to go with a lesser version, whether that’s streaming services and an internet connection or a flat rate phone with coverage that isn’t the best but is affordable.

Learn to shop smarter, use coupons and buy clothing and other seasonal items in the offseason. You also might want to think about eliminating expenses that you simply don’t need (hair appointments versus doing it at home, manicures, or restaurant dining versus saving money with meal planning).

Your income isn’t something that, typically, can change overnight or even in a short amount of time. You should always be looking to add to it somehow (part-time, freelance job, for example) or trying to move into a better paying job.

In the interim, however, you can focus on piecing together a budget that works for you, rather than just tossing your hands in the air and assuming that a lower income means you aren’t even in the consideration or talks to save money.