If you’re trying to save money, I’m sure you have seen countless posts claiming to ‘Help You Save £2000 A Month’. Well, the reality is some of us don’t earn that much a month (including myself) so how on earth are we meant to save it?!?
Being on a low income doesn’t mean you cannot save money. Even if its £50 a month, over a year that will be £600. Saving £100 a month will be £1200 over 12 months. I doesn’t matter why you are on a low income, maybe your training or work part time. Whatever your position is, follow the tips below and I promise, you will be saving in no time!
Open A Savings Account
Putting your money in a separate account makes it untouchable. Opening a savings account with your bank is free and enables you to move your money to somewhere it cannot be used. Most savings accounts can be opened with as little as £1 and you will have access to them in minutes.
Seeing the money grow in your savings account will fill you with a sense of pride and encourage you to keep adding to the pot.
Have A Goal
What are you saving for? Maybe your saving for a down payment on a house or maybe your car insurance is due soon. Having a saving goal will help you stay focused and keep putting spare money aside.
Zero Out Your Cash
A few months ago read a post on ‘zeroing out’ your accounts. I’d heard of the term before but until I read the article, I didn’t understand what it meant.
To zero out your account means to bring your total to end in a 0. For instance, you have £245.76 in your account at the end of the day. To zero out, you would transfer 76p into your savings so you are left with £245.00.
Want to save even more? Keep the 10’s to 0 and transfer £5.76 so you are left with £240.00. Zeroing out at the end of everyday will help you save a lot of money every month without even realizing.
You can also do zero out with cash. Take the cash from your purse everyday and zero it out. Put the extra change into a pot and bank it into your savings account as it builds up.
Focus On Saving Instead Of Spending
How many times have you seen something in a shop window and 5 minutes later, you’re walking through town with it neatly wrapped in a bag. Or you’ve been scrolling through amazon only to realize you have £100 worth of random crap in your cart?
Impulse buying is a hard habit to break but it’s also one you must break in order to start saving. If you see something you want to buy, ask yourself these two questions?
- Do I need to buy this now?
- What will it add to my life?
If the answer is close to no and nothing, walk away. If not, take the day to think about your potential purchase. It’s likely that the novelty of buying something new will ware off and you will choose to save rather than spend.
Learn To Have Free Fun
You don’t always need to spend money to have fun. Choose a nice home cooked meal and a movie rather than going out for food. Instead of meeting your friends for coffee, invite them round and have a coffee date at home. Are your kids wanting to go out for the day? Choose a picnic in the woods over a theme park.
There a plenty of ways to have fun for free and all it takes is a little imagination and you can easily save at least £20 a weekend.
Use Your Creative Talent
Most people have a side hustle that helps them earn a bit of extra money. Some people work an extra job on an evening and others harness the power of the internet to make an extra buck. I did the latter.
In 2018 I started an online shop where I made and sold baby clothing and accessories. It wasn’t widely successful, but it helped me make some extra money in 2018 (£1655 extra to be exact).
If you’re creative, I would recommend setting up an etsy shop. It takes some work but it is the perfect platform for creatives. Etsy has a built in search engine that will help drive traffic to your store (unlike shopify where you have to drive your own traffic).
Want to set up your own Etsy shop? Sign up with my unique link to receive 40 FREE listings.
Start A Side Hustle
Maybe you’re not struck by the idea of starting an Etsy shop? That’s okay, there are plenty of other ways that you can earn money on the side.
There are plenty of amazing side hustles that you can do to earn a bit of extra money. All of them will take a bit of hard work and commitment, but the payoff will be worth it.
And if you work hard and believe enough, you might be able to replace your 9-5 with your side hustle!
You can still save money if you’re on a low income. If you take time to implement these tactics into your daily life you will quickly become a saver rather than a spender!