Saving tips for low-income earners. Have you ever wondered why some people save hundreds of thousands or even millions of money while others can barely save ksh.250 without ‘eating’ it? Well here are 6 tips to help you save that money. Read until the end to find out why some people are so good at saving while others are not good at saving.
Record your expenses.
Tip number one is to record your expenses. Before you can save you have to know how much you spend. Have you ever tried to save before only to withdraw your savings after a short time? Yes? Well, before you start saving know how much you can afford to save from your expenditure. This is by tracking or recording your expenses.
You can track your expenses by writing down daily expenses on a book or piece of paper.
Now that you know how much you spend,
Budget for savings.
If your income is ksh. 20,000 and you spend ksh. 16,000 on necessities then you know that you can afford to save ksh. 4,000. Now that you’ve known how much to allocate to savings.
- Find ways to
cut unnecessary expenses.
Another saving tip among the 6 saving tips is to cut unnecessary expenses this means
- Conserving energy by turning lights off during daylight and turning off running water.
- Paying your bills on time. Your electricity and water provider do not need the charity. Pay your bills on time and save the penalty fees.
- Minimize the rate at which you eat out that is by cooking most meals at home and carrying packed lunch.
- Preserve your leftovers and make new dishes from them. Do not waste good food.
- Instead of always going out with friends have them come over with homemade dishes.
- When shopping: always have a shopping list, use cash, bargain where you can buy goods in bulk from a wholesale store, and compare prices between different stores. However, do not compromise on quality. Be frugal, not cheap.
4. Increase your income.
I prefer increasing income to cutting down on expenses. You can increase income by either starting a side hustle or gaining a new skill to help you get a salary increment.
Remember that the more you make the more you can save. But this does not mean that you should not start saving because you have a low income. Start by saving that daily spare change. You know when you pay ksh.80 for bus fare and you had budgeted for ksh.100. start by saving the ksh.20.
5. Choose the right place to save your money.
This can be in a simple place like a piggy bank or merry-go-round or an advanced place like a high yield savings account.
The point is not to only choose a place where your money is safe but also a place where your money will grow.
Here are a few places to keep your savings: a high yields savings account, savings app, the money markets, a Chama, mshwari, and KCB m-pesa.
6. Automate your savings.
This is by making arrangements to automatically save a certain amount of cash anytime you receive money. This can be as low as ksh.50. Consistency is key.
Lastly, the answer you’ve been waiting for. Why do some people save millions while others struggle to save two dollars without spending their savings? Here goes, the pro saving tip among all the saving tips. The answer is the latter lacks a strong why. why are you saving? and is your why strong enough for you to delay instant gratification? Yes, you want to save up and buy that car but is that car more important to you than getting the latest iPhone? The moment you find your strong why is the moment you’ll be in a position to achieve those saving milestones. Good luck finding your strong why.