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The following is a guest post from Mari Bunal, COO of Loansolutions.ph, a blog that helps educate people in making informed-decisions on taking out loans and becoming responsible borrowers.
If you’re living on a limited income, saving money may seem pretty much impossible. But it’s actually not the case for many people. In fact, a lot of so-called low-income families are able to create an emergency fund and save up for college, retirement and many other major expenses.
If you can’t seem to put money in the bank, making a few lifestyle tweaks might just do the trick. Below are some steps you can take to start saving right now.
Be Smart About Debt
Take a good look at your debt and identify those with high interest. Because of their high fees and interest charges, high-interest personal loans or credit card debt are the ones you should prioritize. Pay them off in the shortest time possible. Just make sure each payment doesn’t put a big dent on your monthly budget. Also, it’s best to steer clear of any more high-interest debt. If you ever need help financing something, take the time to look for the most reasonable rates from the most reliable providers.
Trim Your Biggest Expenses
What expenses eat up most of your income? While it is possible to grow your savings with budget cuts on expenses like electricity, cable, food and gas, cutting larger ones will have a much bigger impact on your capacity to save money. For example, if the home you’re renting has a lot of space you don’t use, maybe you can look into options like subletting or downsizing to a more affordable home. And if you are a homeowner, perhaps you can rent out a room or consider refinancing to avail of lower rates.
Stay in Control of Your Budget
Never ever buy something on a whim. Spend in moderation and always plan your shopping ahead of time so you can stick to your budget. You can indulge in some items every now and then, especially if they’re on sale. But for the most part, it’s best to keep most of your budget lean. Don’t be afraid to make a few sacrifices and always keep an eye out for ways to save money whenever possible.
Try a More Minimal Lifestyle
Do your best not to hoard stuff you don’t need. If you have gadgets, shoes, clothes and books you no longer use, maybe they can fetch a good price on e-commerce websites. Letting go of old stuff is one of the easiest ways to earn quick cash and start building your savings. You’ll be surprised at how much money people are willing to spend on all sorts of secondhand items online.
Diversify Your Income
If you’ve cut costs and still can’t manage to set aside a small chunk of your income, consider earning extra money on the side. Think about what you’re good at and see if you can turn that into another income source. Freelance writing, graphic design and data entry are just some good examples of well-paying jobs you can do from your own home.
There are plenty of ways to cut costs and grow your savings even if you’re always on a tight budget. Just be diligent and creative when sticking with the steps mentioned above, and you’ll be able to save up for the future right away.