7 Simple Ways to Manage your Budget with a Low Income

Written by on September 5, 2012 in Money - No comments | Print this page

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Are you confused about your savings plan due to your low income? Do you have problems to make up your mind with the things to buy and not to buy? Are these choices making you financially messed up? Not anymore!

Having a low budget is not a problem if you know how to utilize them wisely. Being too confused will not help in solving the problem. You need to know the simple budgeting tips that can help you be financially independent even with your little earnings.

Given below are some tips that can help you manage your little wages wisely:

  • Make a budget plan you can follow: It is very essential for you to make a budget plan if you have a low income. It helps you to have a track of your earnings and expenditure in a proper way. You can decide how much money you should allot for each monthly expense. Having a budget will also help you to know if you are spending more than you earn. That way you can put a check on your expenses and increase your savings in the process. However in order to make your budget plan work make sure you make a plan that you can follow.
  • Chalk out a priority list: Having a priority list will help you decide your expenses correctly. For example, which ones should you buy? Which commodities can wait? Which commodities are for emergencies? Etc. By making a list of your basic expenses according to a priority list you will be able to manage your budget wisely even with a little income. As a basic hint, your priority list should be topped by food, followed by shelter and then clothing.
  • Look out for value shopping: Impulsive shopping often leads to huge expenses with no utility. There are also times when you shop for goods found within easy reach of the mall without judging the value. This kind of reckless shopping does not add any value in your shopping and your money gets wasted. Instead if you shop around for the products a bit, you can find them at a lower price.
  • Wait for sale or discount offers: Don’t just go ahead to shop anytime you feel like. It can cost you a lot more. Instead if you wait for the sale or discount offers you can save some money on your purchase. When buying major appliances such offers can come really handy and can save you a bigger sum provided you can bargain well.
  • Plan your bills ahead: Even if you have a low income you cannot avoid the regular payments on your bills for various utilities. If you default on these bills you may end up paying huge fines that can hamper your budget. So it will be better if you plan for your bills well ahead of time. Design your budget in such a way that you can pay off all your bills on time. If required allot a savings fund where you can save a fraction of your income to cover such bills.

The fact is that maintaining your budget and savings even with a low income is not difficult but you need to be calculative and systematic to do so.

This is a guest post.  Jonny is a financial Expert and a renowned Blogger. You can know more about him on various websites and blogs. Click here to visit his site!

Image by MR LIGHTMAN: FreeDigitalPhotos.net

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