A lot of people wonder how they can save money even if they only make $1000 a month. We’re going to be brutally honest—with the rising costs of living and the way the economy is, it’s not gonna be easy. But, if you’re determined and willing to sacrifice some of your comforts and conveniences, you can save a serious amount of money each month. So, how do you make $1000 a month and still save money on a low income?
A positive money mindset does wonders
When you’re able to save money, your sources of income are much healthier and you can do more with your money. Saving is a conscious and active process that involves changes in behavior as well as adopting new habits. However, you need to be confident that saving is actually going to benefit you in the end. You have to believe it’s possible for your situation to improve if you want to make it happen.
Depending on the amount of money that you’re making, the kinds of things that you can spend on may have decreased or increased. A lot of people are making less money but still have to pay for the same amount of things they paid for before. This is one reason why it’s important to make a budget and decide what you need and what you do not need to spend on.
Less fuss, less frustration and more focus
It’s easier said than done, but try not to squander your hard-earned cash on unnecessary purchases. Rather than buying something you don’t need, channel your money toward savings. This can be especially difficult if you’re the kind of person who really enjoys the thrill of buying something new.
It’s important to remember that even if you make a little bit more than a thousand dollars a month, it’s still possible to save money. It just takes some discipline and foresight on your part.
If you’re struggling to make ends meet, here is a list of money-saving ideas to help you out.
Plan out your finances
Budgeting is the name of the game when you’re trying to save money. It’s important to plan out your expenses and income because not doing so can result in a lot of confusion and miscalculations. By budgeting, you can prioritize the different things you want and need to buy.
As a general rule, most people’s salaries are divided into three categories: bills (rent, electricity, water), saving/spending, and discretionary spending (food, entertainment). Keep a spreadsheet of your budget and come up with a way to make efficient use of your money.
Try to cut down on expenses that are not beneficial to your quality of life. For instance, having cable is not necessary, especially if you’re already paying for internet and phone. Try downloading free internet applications instead of shelling out money for websites you don’t know about yet. There are also free applications for streaming videos that you can use on smartphones instead of buying a tablet or laptop.
Additionally, you should also consider using free budgeting apps to help you keep track of your money more efficiently. Apps like these also come with built-in reminders for bills that you need to pay as well as a list of goals that you should work towards.
Prioritize paying your bills and loans
The most important thing you need to do is pay your bills on time. This means that you shouldn’t be late in paying off your bills to avoid late fees and penalties. It’s difficult to save money when you are so preoccupied with trying to pay off large debts and loans. Having extra money can only happen if you are able to write checks for the things that you prioritize first.
Avoid frivolous spending by only using your credit card for emergency situations. Paying off your credit card at the end of the month can be an uphill battle if you do not set a limit on how much you can spend.
As a general rule, it’s better to use cash than to rely on your card. This can help you make an informed decision about how much you are willing to spend. Plus, it gives you more freedom of choice. Just remember that if you’re carrying a balance from month to month on your credit card, interest will accumulate, but using cash will not.
Buy supplies in bulk when you can
You can save a lot of money if you buy your supplies, such as toiletries, in bulk. While shopping in the supermarket, be sure to check if the items are on sale. You can also look for coupons beforehand to help save on your groceries.
Use coupons or visit online stores for extra discounts on your everyday items such as coffee and food. If you find yourself spending more than $10 every time you go out to eat lunch or dinner, try making leftovers so that you can bring them to work the next day.
Avoid buying what you don’t really need
It’s understandable for people to make impulse purchases when they see something that catches their eye or is on sale. However, the reality is that most items are unnecessary in our lives and we can potentially get them for cheaper somewhere else.
Do not overbuy a lot of items that you don’t need. This could work against you if there is a shortage of supply in the future. You may also be tempted to buy things just because they are on sale, not because you’ll actually use them.
There are many different things that you can do to help yourself save money. The most important thing is to make a conscious decision about your financial situation and what you’re willing to sacrifice in order to make it work.
Just remember that it’s not always easy to improve your financial situation and savings. Having a good mindset is the secret, which is why we encourage everyone to read this article and try out some of these money-saving tips on your own.