Budgetting 101

How to budget and save money on a low income

I’ve had to learn this recently because, as you know, I didn’t have any income so it was impossible to save any money. Now I have a job, I’m putting my plans in place. Setting myself a budget, is setting myself up for failure. Budgets don’t tend to work for me. But little changes I made to my daily routine really has helped me save money on a very low income.

Instead of buying a coffee, I take my own. I make my lunch and cook in batches one weekend a month. Importantly though, I take this money out of my account and put it into a savings account. If I didn’t do this, the money would end being spent on a shiny new thing – it disappears. It’s important to work out how much you actually spend on these things each week, replace the habit, and put the money in another account to start saving.

Now I have been in the position when I couldn’t even afford to buy a coffee because there was nothing left over at the end of the week once I paid rent and bought food. Mostly I kept the utilities on but every now and again they were disconnected – so I totally get trying to survive in these high rent low income times. Here is another tip I used.

Whatever change I had left in my purse at the end of the week, I put into a jar and started fresh the next week. This was not negotiable. Sometimes I had to raid the jar for food, but mostly it just sat on top of my microwave and built up. When it was at the top, I took it to the bank and deposited it. Over the course of a year I was able to save $500 this way.

What I also found was that once I made the decision to actually save, my spending naturally curbed itself. That delicious pastry calling my name was left in the cabinet. That beautiful new dress did not seem as necessary. I had bigger goals.

Don’t try to budget. Pay your bills. If by some miracle there is money left in your bank account, transfer it into a savings account and start again the next time you get paid. Make small changes. Forget about the mountain in front of you and just look at the path. Take small steps. Together we’ll get there one pocket full of change at a time.

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