Are you wishing to save for rainy days yet your take home cannot take you home? Do you desire to have savings to fall back back to despite not earning more? You are not alone. In this article, we will share proven tips on how to save money on a small salary and insights on other things you need to do to increase your earning power.
Let’s face it! Saving is hard. It’s even harder if you’re not earning enough to cater to your basic needs. You may have the desire to save but before the paycheck arrives, the bills have already taken up the budget.
If this is your dilemma, don’t fret! We’ve got some tips to help you manage saving on a small salary with other mind-blowing tips on how to increase your earning to leave the low-income radar.
Also Read: 7 Proven Strategies To Stick To Your Budget Like A Pro
How To Save Money On A Small Salary: An Ultimate Guide
If you’re in a constant struggle between saving for rainy days and the rainy days saving you. Here are ten recession-proven tips on how to save money on a small salary.
Start Small
The very point on how to save money on a small salary is starting small. It’s starting exactly where you are with what you have. The truth is, no money is ever enough. Someone earning one thousand dollars wants more and the list continues.
So start small. It doesn’t matter how small it is. The trick is to start and build up as you progress.
No matter how small the salary is, make an effort to save at least 1% of it as your paycheck drops. This will help you to build a stronger financial net in the long run while developing a saving habit.
Create A Budget
We can’t talk about savings without having budgeting in the same sentence. They are inseparable and walk hand in hand for financial success.
To get better at saving, it is recommended that you create a budget that meticulously allocates a portion of your income to different areas of your area.
Creating a budget will help you stay consistent with managing your money and in turn, build a stronger saving habit.
Pay Off Debt
One thing that will take a chunk of your money is debt. Debt like mortgages, student loans, business loans, etc, will derail you from achieving your savings goals.
To be able to save a portion of your income, you must focus on clearing these debts, especially the ones with interest.
Consider DIY Projects
Another recession-proof tactic on how to save money on a small salary is to consider DIY projects.
Do you desire to get new paintings for your house or change your kitchen interiors? It would be in your best interest to consider doing these things yourself to save money.
Pinterest can come in handy for drawing inspiration and drawing mood boards. Think of Pinterest as your interior consultant. While YouTube can come in handy as your artisan. You can watch tutorial videos on YouTube to master the basics.
By doing this, not only will you be able to save money but also learn useful skills.
Save Cash Gift
Unexpected cash gifts are not to be spent if you’re looking to save money. It may look like you’re depriving yourself of fun. But won’t you rather starve yourself today to enjoy tomorrow?
If you get cash gifts regularly, think of how much of that in bulk can do for you. You can open a separate account where all cash gifts go. Revisit this in a few months to see progress
Track Your Expenses
You can’t hope to save money on a small salary and not be conscious of your expenses. It never going to work that way. You can get expenses tracker tools to track your expenses.
Also, you can document all your expenses with Google Sheets or get a financial app to do that for you.
This is important because doing this will give you detailed information on where your money goes and how to curb unnecessary spending.
Don’t Eat Out
One of the recession-proof ways how to save money on a small salary is to avoid eating out. If you want to have a heart attack, try reviewing how much you’ve spent eating out in the last couple of days. You will be amazed at how much you could have saved.
Don’t frown yet! The goal isn’t to make you a social pariah but to limit your outing spending.
Consider cooking some of the food at home while you have your friends come over. You can check out YouTube for some of the food recipes and replicate them at home.
Uncheck Unnecessary Subscriptions
Let’s face it! Do you need to be subscribed to more than one streaming platform? Or is it compulsory to pay for the pro plan for that software?
Think about this really before making that subscription yet again. This may be your cue to go through your bank details to uncheck unnecessary subscriptions to save more money.
Use Discounts
Another way to save money on a small salary is by taking advantage of coupons and discounts.
Before you make any purchase, ensure to check online stores for discounts and coupons. This is a great avenue to save money while shopping for your favorite products.
Get A Side Gig
Now let’s hit reality! No matter how hard you try to save money on a low salary, it gets harder every time.
The bills never stop coming and inflation is on the rise, so the best way to stay on top of all of these is to multiply your income.
You can multiply your income by getting a side gig or having a business on the side. Whichever way, here is how to create multiple income streams:
How To Create Multiple Streams of Income
To help you increase your earnings and be able to save money, here are some of the ways you can multiply your income:
Monetize Your skills
Your 9-5 work schedule already shows that you have valuable skills you can monetize. You can offer your skills as a side gig to other professionals and organize tutorials for newbies.
Alternatively, you can monetize your skills by selling a digital product, being a paid speaker, and consulting for businesses.
Start A Side Business
Another way to create multiple streams is to start a business. Your skills or an identified challenge can inspire this business.
The best business to start while working 9-5 is selling products that are in high demand and have a starving market.
Become An Influencer
You can leverage social media to become a thought leader in the subject matter of choice and make money off brand deals. These brand deals can be weekly or monthly depending on your following.
Alternatively, you can also open a YouTube content creator and make money from revenue.
Conclusion
Mastering how to save money on a small salary is a journey, not a destination. By constant improvements and adjustment with these recession-proof strategies, you are guaranteed to stay on top of your money game.
