How to save effectively when your earnings are low?

Spending money for various purposes has become a normal habit for many people. It is definitely easier to put something aside if you earn a lot and do not have to put too much effort to find additional money. However, a huge number of people are not in such good situation. That is why we ask: how much can you save or can you afford to save some money at all? Even if your answers are, respectively: “-Little.” and “-Not really.” we still have some good news. You can find money for saving even if you live on a shoestring. Read this article and learn what options you have.

1. Look carefully on your spending. Analyze how much you spend and for what exactly. Making a list of expenses and keeping bills or receipts will help you create an overall picture of your financial management style. If you are not used to saving money, you can waste a lot being totally unaware of it. Actually, eating/drinking out or regular unnecessary small purchases can bring big sums at the end of a month. Stop buying on impulse and prepare a shopping list before entering a supermarket.

2. Before you buy (the things you REALLY need), visit a few shops (also online), look for sales, lower prices of the same products in different shops. Such a habit may be a bit time-consuming but it is also very profitable and will bring lots of savings if it is carried out on a regular basis.

3. Collect change and money “leftovers”…on your savings account. It is little, but in the long run it will give quite a big number.

4. Stop wasting money on gifts. Birthdays, Christmas or other occasions can cost you a lot of unnecessary money. Do not buy the piles of things you are not even sure are wanted. It is better to buy one item, yet chosen reasonably.

5. Take part in a local Investment Development Account program. This will demand your participation in sessions connected with financial management and then you will receive $2 every time you save $1 through this program (it must be for home, education or business).

6. If you do not have the habit of saving a part of your monthly earnings regularly (even a small amount), you should consider making it automatic. Visit your bank and get to know more.

7. Utilize your employer’s matches to retirement savings contributions – sometimes it can concern even 100% of your contributions.

8. Get rid of or avoid any high interest credit cards or loans. You really should not pay 500% of interest rates for a payday loan in the situation when you try to find every single amount of money to save.

9. Have an emergency savings account so as to avoid taking unexpected loans. Remember about the right balance on the account if you do not want to pay fees.

10. Consider taking Earned Income Tax Credit. This is available also for employees with low income.