Not everyone is lucky to have a handsome salary from their job. But we can still have a comfortable and successful life with whatever amount we earn if we know how to save money with little income.
Here in this post, I am going to share 10 tips to save money with your little income.
With regular practice, and these tips you will not only save money but also experience unexpected growth in your income.
Read and apply these tips in your everyday life and be an expert in saving your income.
How to save money with little income
1. Keep 10% just for you
When you receive your income from any source, start by saving 10% of your income.
Whether the money is coming from your income, your spouse, your kids, or any other source set aside 10% from it solely for you.
We usually spend money on the monthly expenditure of our family, education for our kids, paying bills, paying EMI, etc, so we end up living paycheck to paycheck. We think this is normal, but it is not so.
But we hardly think of ourselves.
Use this 10% of your income solely for investment purposes. Not for your expenses, not for paying bills, not for food, but solely for making more money from it.
This is one of the first principles I have applied from the book, ‘The Richest Man in Babylon’.
Unless we keep it for our own we won’t be able to multiply the money.
You may think it will be a burden, but trust me it will hardly affect your monthly expenditure. Your monthly expenses can be managed with ease. Just try once and see yourself.
If you want to know more about this, here is what it means by the 10% savings rule
2. Start recurring or buy policies
If you have not yet started a recurring account, start one. More you delay and wait for more income to start, it will never happen. Better start with a small amount than delay.
You can buy a policy of your choice. The only thing is you start immediately. If you have already done so, with every increase in your income, increase your savings too.
Buying policies gives us security in life and at the same time, we save money for the future.
I have noticed that how much ever money I had, it would get used, but if I had an obligation to save by making automatic payments for savings, I would manage to pay them.
So now I always have my recurring and buy policies so that my money can be used in saving for me and my family’s secure life. You can check online the best policy. Buying is saving.
3. Do your monthly shopping wisely
Remember all the things you bought in your last shopping. What are the things you are not using and will not use for a couple of days or months?
Buy only very important things while shopping. This is the area we often neglect. We go to buy our groceries and come back with bags, clothes, shoes, whatever we see in the mall.
So to maintain the shopping and buying extra unnecessary things always make lists of essential items. Plus carry your cash, not your card.
This way you will not be able to buy other kinds of stuff. This habit will help you to save more money even with little income.
4. Clear your debt
A small amount of debt is enough to block the good fortunes in your life because it is the greatest form of negativity if neglected. Some people overlook it and think that it is just a tiny amount I will clear it shortly.
Some people think I will clear when I will have enough money after saving. If you do so, it is never going to get clear, rather it will keep multiplying.
If you have debt, keep 10% of your income solely for repaying your debt.
Give how much you can but give with trust you are going to clear it soon and never going to have it in the future. Change your thinking pattern with the action.
5. Don’t buy unnecessary items
Look around your house how many things, clothes, and furniture are not in use? I am sure there are plenty.
It is very necessary to shop mindfully and be very clear before you go shopping about what you need for your house and for yourself.
Shopping mindfully helps you to cut the extra expenses and add the money to your account. Practicing mindfulness while shopping helps to save money.
6. Eat at home
Stop spending extra money on fast food and restaurants. Make your meal at home and enjoy it with your family.
You can prepare any delicacy at home by looking at YouTube channels or Pinterest. You will not only save money, but learn how to cook too. Homemade food is healthy and nutritious too.
7. Make a budget for travelling
Most of the time where we fail to save our money is on travel. We save the whole year from our little income and when we plan for the holidays we do not plan cautiously and mindfully and all our hard work saving goes away in unimportant things.
It is very nice to go for a vacation once a year with family. I feel it is a must to lead a healthy and happy life together with our loved ones.
But while travelling, see that you are not buying extra items which will cause extra clutter at home. Buy important and useful things. The things which you will not find in your place.
8. Don’t show off
Be what you are. You are living your life for yourself and your loved ones, not for the people around you. Buy what your income suits.
It is not necessary to go for brands just to show other people.
9. Stop buying expensive toys for your kids
Kids enjoy spending time playing and running in the wind, making sand houses, making cloth tents with bedsheets and towels, and jumping in the puddle. They grow playing naturally.
It is we who give extra unnecessary things to them to enjoy which is always for the short term. They play with it for some time and then throw it away and lose interest.
But gradually they start wanting more toys, they will scream in front of the toy shop to have more toys.
Buying toys is a waste of money unless the toys give some good information and knowledge.
So stop buying expensive stuff they will not remember them, what they remember is the time they spent with you and nature.
10. Do your work yourself
It is a good idea to do your household work yourself. It is a way of taking care of your family. Your children will learn to do small stuff and eventually learn to be independent.
It is not tough. Just make a routine for your household chores, and distribute the chores among your spouse and kids.
This way you will save money going out and add extra money to your account. More importantly, adds value to the life of each member of the family, and develops a strong bond.
Every small thing in our life matters. With little awareness of our expenses, we can save and have easy and manageable finances.
Final thoughts on how to save money with little income
I was an ordinary school teacher with very little salary.
I practised these habits, saved money by just buying one policy, and travelled with my daughter but we did not shop while travelling. We always did budget travelling. I Looked after my daughter’s needs. I raised her in that manner, so she never asked for fancy things.
I did charity with that small amount from my heart. Slowly and gradually everything changed. My daughter got a government job as soon as she finished her master’s degree. Now, apart from her job, she also earns extra income from her blog.
I have experienced that patience and perseverance are the tools to keep going. Enjoy your life with what you have, always listen to your heart.
Have faith everything will be all right. Everything will pay off well.
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