How to save money earning little

It's clear that saving money doesn't come naturally to most of us, and this isn't necessarily our fault.
Unfortunately we live in a society that rewards and encourages spending, not saving. Everywhere we go, we see ads inviting us to buy something with the promise that it will make us happier and/or improve our lives.

It is very easy to get carried away by the consumer culture and spend money that many times we do not even have. According to CNBC, 63% of Americans live " paycheck to paycheck " or paycheck to paycheck.

 

How do I save money if I earn little?

We all want to be happy and buy things that make us feel good. This feeling and desire to feel good about buying things makes it even more difficult to break free from the trap of consumerism and reach our financial goals.

Saving money isn't just about feeling more secure or having more financial freedom. It is also about taking control of our lives and making a conscious effort to live better, healthier and more consciously.

There are many quick and convenient ways to save money without depriving yourself or sacrificing your quality of life. We already discussed some of these in our article on 5 Simple Ways to Save Money . However, in this article we will discuss other ways, strategies, and/or methods of saving money when you earn little.

If you are someone who wonders how to save money in a year? Or how to save money if I earn little? Then this article will help you a lot.

1.Change your mindset about money

This first recommendation may sound very generic to you, but do not underestimate its importance. The mind is more powerful than you think. It influences your spending habits and savings goals, so it's important to change your money mindset to save more.

One way to do this is to never tell yourself that you "can't" save money. The moment your mind thinks about "I can't", you will have lost the battle and your money will also say no.

To attract money, reprogram your brain and say "if I can save" to yourself. Emphasize that, if you can and you will save money no matter what. By shifting your mindset and focusing on all the ways you can save money, you'll find yourself finding creative ways to save money.

Having a clear mindset about your finances will also help you make better decisions when making a purchase.

For example, you might think it's impossible to lower your auto insurance rates since everyone else pays so much. But by searching for insurance quotes and comparing prices, you'll have better information and more power to negotiate a lower rate. When you bring up the fact that other competitors are offering better deals, you may be surprised at how willing they are to lower their rates to keep your business.

2.Know your personal goals

Even before you start saving money, you need to know exactly what you're saving for and why it's important to you. If you don't know the reasons why you are saving, it will be very difficult to achieve your financial goals.

Reflect on your purpose for saving money. Are you trying to create an emergency fund for any unforeseen event? Or maybe you're just sick of debt and want to stop living paycheck to paycheck.

Whatever your reason, be honest with yourself and set goals that are important to you, not other people.

Also set some personal goals related to saving a certain amount of money and make them as specific and measurable as possible. For example, "My goal is to save $4,000 by the end of the year."

Once you have your financial goals, break them down into actionable steps or points. This will make them easier to achieve and will help you stay motivated as you reach your financial goals.

For example, if your goal is to save $4,000 by the end of the year, how much should you be saving each month? And a week? You can even include what kind of actions you need to take, and stick to, to achieve these goals. Like, for example, stop taking toll roads or restrict the number of days you eat away from home.

Whatever your goals, it's important to have them written down and keep them in mind whenever you're tempted to spend when you shouldn't. Having concrete goals will help you stay focused on your savings efforts and give you the motivation to keep going.

3.Earn more money / increase your income

If I already know, this is easier said than done and is not necessarily advice to save more money. But the reality is that increasing your income is one of the fastest ways to save more money.

There are different ways you could try to increase your income like doing side jobs or freelance projects. Here are some ideas:

Try working overtime at your current job

You don't always have to find a second job to earn more money. If you are paid by the hour try to talk to your supervisor or co-workers to see if you can take additional shifts or hours. This could even help you get a raise or a promotion if you do a good job. Always remember to mention why you want to work overtime and how you would be helping the company/business, especially if the conversation is with your supervisor.

Start a side hustle or side job

Which skills do you have? What do you enjoy doing in your spare time? Are there any services that you could offer to others or products that you could sell? Check out our article on

How to Earn Money From Home to learn about some things you can do to generate income from the comfort of your home.

Did you know that you can earn money by answering surveys online? I invite you to read our article on The 5 Best Paid Survey Sites .

special jobs

Many people in your town may need help with odd jobs where they don't think hiring a professional is worth the cost.

Small jobs like helping a neighbor mow their yard, walking dogs, babysitting, doing some repairs or cleaning jobs. Often these are jobs that only need to be done once or one day a week, but can add up to a significant amount of money if you manage to do them consistently.

4.Create a 50/30/20 budget

A smart way to manage your money (and hopefully keep more of it) is to stick to a budget, which means setting priorities for your spending.

I recommend you follow the famous "50/30/20" budget for managing your money.

The 50/30/20 strategy or method focuses on devoting 50% of your after-tax income to necessities like rent, food, and transportation. 30% to entertainment things like going to the movies, going out to dinner, going on a trip, etc. And the last 20% to savings and payment of any debt.

5.Automate your savings

Once you have established a budget, the next step is to automate your savings. This will help ensure that the money you've set aside for your goals actually makes its way into your savings account each month.

I don't like spending time on administrative tasks, so my favorite way is to set up automatic transfers from my personal checking/account to my savings or investment account. The money in my investment account is for retirement and other long-term goals, so it's automatically invested in low-cost index funds. I don't have to think about it or worry about manually transferring money every month. I only set it up once and my savings are managed automatically.

You can also set up automatic transfers from your personal account to a retirement account, like an IRA or 401(k), to make sure you're saving enough for your future. Later we will share some articles explaining the differences between the types of retirement accounts.

I recommend configuring these automatic transfers in order to "force" yourself to save part of your income.

One of the best benefits of automating your savings is that you won't be tempted to spend the money you're supposed to save. And, because you're not actually even seeing it in your personal checking account, you may not even miss it. So save more and stress less with these simple tips!

The key is to make it as automatic and without intervention as possible. This way, you don't have to think about it and you can focus on other important things in your life. After all, saving money should be simple and easy, so take advantage of any strategy or tool that makes it possible.

Conclution: How to save money earning little

Changing the way you think and making saving a priority is one of the fastest ways to save money.

Find ways to reduce excessive spending and focus on earning more money through a side job or working odd jobs around town.

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