The question of how to live well on a small income may be answered by looking at one’s lifestyle before beginning.
Summary: Living an affordable lifestyle can bring contentment. This is the bright result of seeking to live within one’s means. This sure beats great anxiety and high stress levels, which are also quite unhealthy to have.
Preparing yourself for significant changes is important.
For the undisciplined, writing things out may help. For the motivated though, factors may appear easy enough to get control of. This is because wishes to improve are not so powerful as focused attention. Getting control over finances is possible for both types of people.
Making a living with a small amount of money takes discipline. A few cutbacks may be needed, even major ones for more mastery over finance.
12 Ways How To Live On Very Little Money
1. You Need A Budget
This is probably the #1 thing to understand. There is not much room for failure. If you don’t have much income, make sure to carefully watch it.
Write out monthly expenses and sort them big to small. The best strategy may be understanding what takes up the most amount each month. Question or research if there are better ways to reduce or replace each of these expenses.
Even $10 can be a big deal here. Take an investment of time to track things when you don’t have much, and this could help with later monetary discipline.
For the future then, you’ll be set up to make appropriate decisions without too much thought. This is result of following good practices.
2. Could You Share Living Space?
Save hundreds. Question whether you can share a place with one or more individuals, if you’re okay with this approach. The more roommates you can find the less expensive things turn out. This doesn’t only apply to the rent. The utilities could be reduced to one-half or more by splitting these costs.
3. Could You Move To Reduce Costs?
Save so much. If you want to consider moving somewhere, a lower cost place could almost always be found. Pick up a local apartment guide for your region or do the research online. This is a strategical approach that may give some positive insight you didn’t have before.
For a living place, reducing costs could mean moving to some lower cost location. Or replacing this expense could mean moving to another country altogether, where the standard of living is much lower.
4. Spend Only On Necessities
Another important factor in everything here. While income is small, make sure to find free ways to enjoy life and to save everything you can.
You don’t need to bog the mind down. Both regret and financial trial can result from spending needlessly. Try to avoid shedding money off flagrantly.
5. Spend With Cash Rebates
If you are going to spend, seek out cash back programs. There are smartphone apps and other programs that promote savings.
Absolutely! This is actually great to do when having less to live on. The key is not to let yourself get tempted enough to lose spending control.
Just because designer jeans or brand new toys can be bought for less, doesn’t mean they should be. Stick to the plan and spend only on necessities if possible.
6. Simplify Your Living
Declutter and sell things. Depending on the value of the things you have, receive more or less income. Sell locally or online.
Letting objects go is sometimes important not only for finances, but also for peace of mind and contentment. Both are healthy aspects of the freedom of mind.
Learning how to live on very little money can be practiced from the simplification of lifestyle, not the complexity of having material objects crowd out the clarity of mind.
7. Never Ever Dine Out
Okay, maybe that’s an exaggeration. So perhaps once a year is okay. But altogether, making cheap meals that can cost $1-$3 can really save over time.
For example… spend $10 on making things every day to equal $300 monthly. Or spend even less if you can.
However, when dining out just once daily this could mean an extra $7 daily or an extra $200 monthly. This would be $500 instead of the previous $300 monthly total. Dine in and don’t dine out.
8. Communication Options
If you need communication with the outside world, a phone can help. Just know that a $40-$100 monthly bill could get down to $10-$30 with some prepaid minutes. There are options for phone savings.
Just get a prepaid phone and one of the minute usage cards every now and then. At least try and make this last a full month.
Alongside this, the initial cost of the phone can be high. Skip the $500 smartphone, opting for an old $20 flip prepaid cellphone. Save $500 plus maybe $40 every month. This could save $980 over the initial year, and maybe $480 each year after.
There are also single plans that can really help save money, for the curious individual looking for these choices.
9. Try To Save Something
Any future living plan or even emergency will likely need some funding prior to the event itself. Try and save $10-$100 monthly. This is far greater than having nothing when attempting to conquer some problem.
Do you have trouble doing this? Here’s an extreme way. Take an old one-way jar or money bank that can’t be opened without breaking it, or even leave the jar or bank with someone trusted. Find a way like these or something else that may prevent early withdrawals.
10. Hold The Debt Down
When one does not have much income at all, credit card debt is the last thing needed. Instead of paying 12%-30% in APR credit card fees, go to relatives or friends.
Try this at least. Ask if you can borrow what is needed with no interest owed, or maybe an interest payback of 5%-10% later. This simple debt trick will help one outsmart the folly of debt.
11. Work Is The Solution
This can be unpleasant to hear or understand. But a larger income or having two jobs can really help alleviate concerns. In fact, if extra part-time work or more is partaken of, then maybe prior tips don’t need to be taken as seriously. It depends on your situation.
12. Free Government Money
Taking money from other decent, hard-working citizens in your country is an excellent solution. Blah… not really, as this is a joke solution.
When governments give “free money” to individuals, it generally just means they’re taking it off of someone else. Though some individuals may need a hand-out before they can even begin to get a hand-up for themselves. It’s up to you the individual.
Conclusion
These ways concerning how to live well on a small income can help one to discover positive insight. This insight can lead to saving more than just a handful of dollars.
Related:
• Money Plan with Budgeting
• Budget for Adverse Events
• Several Cheap Phone Plans
• 100 Ways to Save Electricity
Leave a Reply