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2018-06-05 18:48:25Self-Employed AdviceEnglishWhether you dream of an overseas holiday, owning your own home or simply paying off your loans, it can be hard to save money when you’re...https://quickbooks.intuit.com/au/resources/au_qrc/uploads/2018/06/iStock-862600138.jpghttps://quickbooks.intuit.com/au/resources/self-employed-advice/money-saving-tips-for-low-income-earners/Money Saving Tips For Low Income Earners | QuickBooks Australia

Money saving tips for low income earners

2 min read

Whether you dream of an overseas holiday, owning your own home or simply paying off your loans, it can be hard to save money when you’re on a low income. Let’s be real, sometimes it can be a struggle to find spare change at the end of the week. But there’s still the possibility of saving money. While it will take sacrifice, it might be easier than you’d think. Here’s a few money-saving tips.

1 Budget

Budget, budget, budget. As boring as budgeting sounds, it’s the only way to get your expenses on track. First, you need to sure you are spending less than you are making. If you are overspending, you’ll need to make changes to your spending habits asap.

Take the time to review your expenses – are there any that you can reduce? Or get rid of altogether? Review how much money per month you are spending on food and drink. Buying lunches and coffees during the week and expensive weekend brunches can really add up. See where you can make any changes and adjustments.

2 Minimise debt

Debt can be a real catch 22. While it can sincerely help you get through the hard times and satisfy unexpected bills, it can quickly turn around and bite you with aggressive repayments and excessive interest fees.

See if you can work out how you can start paying down any loans that you already have. And try to stop using a credit card. This form of debt can quickly add up and get you into trouble. If you want something, learn to save for it. Use AfterPay or a lay-by system when you are buying retail to help you work out a debt-free payment plan.

Pretty girl is putting a coin into a piggy bank that her father is holding.

3 Save first

When budgeting, most people will first take out all their expenses and then if there is any money left, throw a nominal amount into their savings account. Why not try do the opposite? Pre-determine the amount you want to save each week or month and put that away in a separate account first thing when you get paid.

Then work with what you have left. Open a dedicated savings account – one that’s not linked to your regular account. You know what they say – out of sight, out of mind. That way, you won’t get tempted to flick money back to your regular account when times get tough.

4 Earn more

It may sounds like an obvious piece of advice, but the fact of the matter is, earning more money is a great way to save more money. Once you have structure in place and you’ve sorted your budget and got into the habit of savings, increasing your revenue means you can put all your extra money straight into your savings bucket.

These days, it doesn’t have to mean getting a new day job, why not create your own side hustle? The gig economy opens the door to exploring more ways to earn money than your typical 9-5.

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Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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