How to save money while earning little
How to save money while earning little
Many people believe that they cannot save money by earning little. However, the opposite is often the case: they have little because they don't keep the money.
In a society in which consumption is seen as a value, those who purchase products and services feel included. Things that are often not essential and therefore only meet social demand.
But the logic is quite simple: savers are less likely to need to borrow money, and that means less money spent on interest. In addition, the good saver also has the possibility to make investments, which can yield good extra income.
It is necessary to overcome this habit of spending more than necessary. And yes, it is perfectly possible to set aside an amount of money to save, even if the income is not very large.
And that's what we're going to help you think about in this article. Read on and see what you can do to save money while earning little!
Prosperity is closely linked to the culture of saving
Personal finance professionals say that good money management does not depend on how much you earn. In other words, a person who has difficulty managing his salary earning little would likely continue to have money problems even if he started to earn more.
Those who think they can only prosper if they have a high income are wrong. It is obvious that we should all strive to improve our salary, diversify our income, in short, produce more earnings. Now, when there is an understanding that it is necessary to set aside some income for a reservoir, the culture of the economy takes root.
Thus, when financial life improves, the habit of saving and investing is already incorporated into habits. And there the prosperity tends to be increasing and continuous.
And it's never too late to start. The secret is to make gradual changes, observe consumption habits, and practice economics with short, medium, and long-term goals in mind.
Tips to save money earning little
If you don't earn a lot and want to organize your finances, let's prove in the topics that saving and investing are not the privilege of people with a lot of money. Therefore, you will be able to save money by earning little with these tips!
Make a good financial diagnosis
The process of balancing personal accounts is not much different from when we are sick and see a doctor. First, the health professional listens to the patient's complaints and performs tests to gather the information that will help make a diagnosis.
With the diagnosis in hand, the doctor already knows what is wrong with the patient and can start to apply a treatment, prescribing medication or guiding the person to adopt healthier habits.
With finances, we also need to gather information to find out what's wrong with our accounts. This diagnosis must be accurate, as it is the foundation of the entire strategy that will be built to change our financial habits.
Look at your current financial life and reflect on how you are using the incoming money. It might be a little painful at first, but be encouraged; knowing the root of an illness and working on it is much more effective than just continuing to treat the symptoms.
Write down all recipes
Do you know how much you earn and how much you spend each month? Do you know what expenses most of your money is being spent on? Have you ever wondered if you are really being paid well by your workforce?
These questions may seem obvious, but therein lies the danger. They are nothing obvious! We can safely say that the vast majority of people do not know how much they earn.
This happens because the sum of all amounts that enter the bank account is not always the same as what is written on the paycheck. We have to consider all income, such as income tax refunds, bonuses, thirteenth salary, self-employment, among others.
By looking at this, you will begin to understand if it makes sense to have current income. It can be an interesting exercise to get out of your comfort zone and look to the market in search of a new job placement, for example.
Record all expenses
As with income, you also need to write down all expenses, so we know exactly where the money is going. This is usually the time when most people are surprised.
Have you ever had the feeling that the money just disappeared from the account, almost like a sleight of hand? This is because, in general, we have some idea of how much we spend on larger expenses, such as rent and bills, but we do not keep any control over smaller expenses, such as the movie theater, the bar, the cafe and so on...
It's never too late: embody the "accounts payable leadership" that is within you and start taking note of everything. Do this daily. You can use pen and paper, personal budget spreadsheet, specialized apps… It doesn't matter, just write down everything you spend.
Make shopping lists
A very simple way to avoid unnecessary spending on impulse purchases is to list what you need to buy. When going to the supermarket, take your shortlist with all the really important items. When going to the mall, leave the house with a list of the clothes and shoes you really need.
Use your mobile's notepad. Before leaving home, review your list and reinforce your purpose of only buying what's there. You will find that it is much easier to choose among the available brands, search, compare prices and only take what is really important.