How to Save Even with a Low Salary

Everyone wants to build their wealth and create a secure future not just for themselves but their loved ones too. However, many things can come in the way of your long-term financial plans, which in turn might mean that reality can turn out to be quite different from what you expected. Several people learn to survive on a low income; saving is a luxury, getting by is a necessity. Having adequate savings is vital to handle emergencies smartly. For emergencies, you can either go for a low salary personal loan, dip into your savings, or both. But can you save when you are living paycheck to paycheck? Your personal finances (or lack thereof) is one such factor that not only influences your current lifestyle but your future one as well. Here are four tips that can help you overcome the challenge of saving money even with a low income.    

1.First Things First- Sort Out Your High-Interest Debt

This is the first step towards achieving your savings goal. If you have any high-interest debt, it is better to pay it off as soon as possible. This includes credit card bills and overdue personal loan EMIs. Having existing debt will always significantly constrain your efforts to save until it is fully paid off. When paying debt, it is crucial to plan and prioritise your repayments. Start by paying the debt with the highest interest rate first. Ensure you do not get going with the next loan until this one is fully paid off.

2.Downsizing Housing Costs

Housing costs are a significant factor that hampers your ability to save and enjoy your desired standard of life. Housing costs are influenced by both your location and living expenses. These are factors that will be there your whole life. Experts recommend going for what you need while also living as simply as possible if you live alone. For example, your location is a prime factor. Living in a metro with a house in a central location can cost you thousands of rupees more than it would anywhere else in the city. Another tip: if you have extra space or if your house comes with a separate guest bedroom, consider renting it out. You can either do it for a long or short period. It’ll help you earn some extra money.

3.Consider Automatic Savings

It often happens that with some extra cash in hand, you might want to spend it on an elegant dress or go out for a lavish dinner. When you can overcome that temptation and save money, it can go a long way- doing that every month can seem challenging. Create a savings account where your bank will automatically transfer a designated amount of money from your salary account. This way, you avoid the risk of spending the amount intended for your savings.

4.Second Source of Income

When you have a family to feed but a low paycheck to live by, you need all the money you can get and all the savings possible. To save, it is essential to have an idea of how much you are spending. Side hustles are a great way to increase your income, and you can take a personal loan for low salary to facilitate that. From the very beginning, be honest regarding where you stand with your finance and what your financial goals are.

In Conclusion

Even though it may seem impossible to save money while earning a low salary, the above points prove that it is still possible. Just make sure that whatever tips you try shouldn't come at the cost of your fixed monthly expenses such as rent, utilities, etc.


Popular posts from this blog

All You Need to Know About Unsecured Business Loans

Business loans are sanctioned to existing business owners or budding entrepreneurs looking to start their own business. The business loan amount helps them get their idea off the ground. Existing business owners can use the funds to take care business expenses. The loan amount includes the principal amount which is paid with interest in monthly installments. How affordable/reliable is a business loan? Can you, as a business owner honour your installments on time? Other than loans from banks and NBFCs, you can get personal loans for business from FinTech lenders as well. In this article, we discuss business loans in detail. Business loans are broadly categorized into two types - secured business loans and unsecured business loans. What is an Unsecured Business Loan? The main difference between secured and unsecured business loans is that the latter requires the you to offer collateral while an unsecured loan does not require you to pledge any security. For a lender, secured business lo...
Read more

3 Advantages of Consolidating Debt Using a Personal Loan

Whenever you’re faced with a financial emergency, taking out an instant personal loan is sure to be among the top choices that you would usually consider, in terms of coming up with the required funds. This is primarily due to the convenience they offer, from the reduced TAT and loan disbursal time, to the minimal documentation required. Today, it is very easy to get an instant personal loan, owing to the vast number of banks, NBFCs, and FinTech companies that provide them. Whether you need a personal loan in Bangalore, or a personal loan in Chennai, you can get one in a matter of minutes.  While it is always a good idea to borrow only how much you require, it may so happen that you end up taking a number of such personal loans in quick succession. In such cases, your financial goals are sure to take a hit, because a lot of debt accumulation has now taken place. While keeping track of numerous EMI payments can be tough, there is an option that can make your life easier – con...
Read more

Tips to Get a Personal Loan with Low Credit

If you’ve ever borrowed a personal loan before, you’ll know exactly how important your credit score is for your personal loan’s approval. Your credit score is the gold standard against which all lenders across the country evaluate your loan approval. They use this to decide how risky it would be to sanction your loan. If you have a high credit score, you’d be a low-risk applicant for your lender. If your credit score is low, you’d most probably represent a high-risk proposition for your lender. Your credit score is a three-digit number that illustrates how financially responsible you are. It summarises how much credit you’ve availed of until now, your repayment behaviour, and your credit history. By now, you must be thinking that applicants with a low credit score cannot get a personal loan . But that’s not true. Here are four tips you can try to get a personal loan despite a low credit score: 1.Prove That You Have Good Repayment Capacity When it comes to getting a low credit personal ...
Read more