Tips on managing Finance
Living on a low income Is not easy
But there are things you can do to avoid sinking below the surface. You have to be strong and exercise control to achieve some order with your finances. Actually it is not just low income. I am aware of many people on average incomes that struggle too. Reason being we all seem to push our spending to its outer edge no matter what the income. We can all make improvements and learn how to remove some stress from our finances.
I have lived on a Low Income for Years.
Some find it difficult to understand what it is like to exist payday to payday. You have good days and there are also times where you seem to be drowning in dept. You may start selling stuff just to get by as I have done on occasion in the past but you soon learn along the way that there are ways you can avoid falling into crushing dept.
I have listed some of the ways I have learnt along the trail to stay ahead.
- Sit with pen and paper and write out all weekly/fortnightly expenses. Write urgent must pay first down to expenses you could cut, things you could live with out. This way you have a guide line to what you are dealing with .Outgoings to income. Then you can start working on a plan.
- Set up weekly automatic payments into regular bills eg power, phone, rates etc. Work out how much you need to put in each week to stay ahead of the expected annual cost. If you balance payments out over time it is easier to pay and you don’t get that crippling large bill turn up in the post.
- Become food savvy. Shop in season, shop the coupons and specials. Prepare meals yourself, learn some budget recipes. Do one shop and set a spend cap for food.
- Cut out expense where ever you can. Being strong is what will help your savings plan succeed.
- Avoid using credit cards, store cards and easy finance offers.
- Avoid late penalties, overdraft fees where ever possible.
Other things you could try to ease sudden financial strain by being prepared.
- car-If you can put a small amount aside each week just for car costs. It soon adds up and will help cover those sudden bills that can come in with cars eg new tyres , repairs etc.
- Other sudden expenses- Again by putting a small set amount aside each week you can be ready to tackle sudden expense that often pops up. eg Dental, a new appliance , school costs , clothing etc.
Don’t forget that Life is For Living
- holiday This may sound like a broken record but again here even 20$ aside a week builds up to a good holiday in a relatively short time. You can achieve all of the above and be living ahead of the bills but none of this is inspiring if you don’t have a treat to look forward to. If you are not keen on holidays use this money for day outings or evenings out. As long as you are able to treat yourself now and again.
Note- If you are already struggling with finance a credit card dept. Look into maybe having all your loans put into one or having the credit card changed to a lower interest at another bank. Even talk to your bank to see if they can help make it easier for you somehow.
Credit cards are bad. Once the balance is up high you will only be paying interest with your monthly payments so the balance will hardly go down. You will just be paying over and over and getting nowhere so it needs to be a priority to get rid of this dept. Pay way more each month than you need to. to help reduce the balance and do every thing in your power to not use it again.
With a little determination we can learn to live with in our means.