Monday, October 26, 2015

Is It Possible To Save Money On A Low Income?

This has been the most intriguing question that a lot of people had probably asked.  As a matter of fact, I also asked this question to myself and you know what my answer is?  It's a big YES! Having worked with different people from various age groups, status, race, educational background and social standing for the past 20 years had enabled me to have a better view and knowledge about finances and based from my observation on other people and from my own life experiences, I could say that's possible.  Really, it is!

Let me tall you one thing, not every person who is high salaried or has a big income has substantial savings.  As a matter of fact, some of them do not even have a single centavo in the bank.  Worse than that, they are full of debts.  Having said that, you maybe surprised that some people with low salary or income do grow big overtime.  This clearly shows that your attitude about money has a big influence over your financial standing.

Okay, going back to the question, "Is it possible to save money on a low income?" I have already answered this earlier with a yes, but probably the next question is How?

The answer is, you have to examine your lifestyle and make adjustments where necessary. The old saying, "If there's a will, there's a way" is always true. 
  • If your income is low, then you have to make your lifestyle fit with your income. 
  • Spend only what you can actually afford and never resort to debts. If it means having to cut down on your expenses, then do! 
  • Make a budget and prioritize the needs over wants.  If it means only spending for foods and utilities, do so.
  • If your expenses are just within the budget and there's no extra for savings, the you have to start doing side jobs or find an extra source of income. 
  • Bear in mind that it is a must to have savings, even if it means just saving 100 pesos every month, so be it, but never go for zero savings.  No matter how small your savings is, it can grow overtime.
What I have done before was to keep all of my 13th month pay in the bank as part of my savings aside from the little savings I kept every month.  What I did was to buy gifts every month until I complete all the gifts I need on Christmas and to keep a little bit of money every month for the anticipated holiday expenses.  This way, I'm able to save my 13th month pay and increase my savings tremendously.

There are actually a lot of ways to save even on a low income but I know it's very difficult as this requires a great amount of discipline.  Nonetheless, you have to do it if you really want to make a change and improve your financial standing.

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