Tips for Spending on a Low Income

If you have a low income, then you will need to be careful when you are spending money to make sure that you do not overspend. It can sometimes be difficult to manage but there are things that you can do which will help.

Set a Budget

It can be really handy to set a budget so that you do not accidently spend more money than you can afford. For example, you might want to calculate how much you can afford to spend each month, week or even day to make it easier for to decide whether you can afford to buy certain things. You will need to make sure that you have enough money to pay for everything that you need before you allow any money for treats. Do make sure that you are not spending more than necessary for things that you need as this will mean that you will be able to have money available to spend on treats.

Shop Less Often

Sometimes we can be tempted to spend more money when we are shopping. It is hard not to be tempted to buy extra items as a little treat and then get carried away with overspending. Therefore, if we shop less often we will be able to avoid doing this. There will be less opportunity to buy extra items that we do not really need if we go to the shops less often. It can therefore make a big difference. However, do be careful that you do not shop so infrequently for groceries that things go off before you use them as this will waste money.

Use a List

Using a list when shopping can help you to focus on what you need and make sure that you do not buy things you do not need because you forget what you actually want. These can be especially useful if you are in a supermarket or other food market, but they can also be handy when buying other things too. You can also make sure that you only add things to the list that are within your budget and it will ensure that you do not overspend.

Compare Prices

It can be a good idea to compare prices on everything that you are buying, even the cheapest of things. If you can switch to cheaper options then you will save some money and if you can save money on a lot of things, then those savings will add up to be more significant. It is a good idea to think about doing this on all things, not just when in a shop. So, when you are buying online or signing up to phone contracts, renewing your insurance etc, make sure that you do not pay more than necessary. Of course, you want to make sure that you are getting value for money and you do not want to have to replace something quickly because the quality is poor but likewise, you do not want to pay much more than necessary just because you have not checked out the prices.

You will need to be more careful when you are spending money if you are on a low income, but surprisingly it may not be harder than someone on a higher income. Those people on a higher income tend to have higher bills to pay and they will still have to budget carefully to make sure that they do not overspend. Learning how to budget, spend carefully and stay in control of your money is really important and can be useful for your whole life so it is well worth practising.

Easy Ways to Repay Your Loans More Quickly

Repaying loans quickly is a really good way to save money. The longer you have a loan for, the more you will pay in interest and other charges. This means that if you can repay it early, you will be able to save money. There are some loans which will charge a fee for early repayment and you will need to make sure that you check that you are aware of how much this fee is and that you will be happy to pay it. It could be that the fee is so high that it is not worth paying it and better to just use the repayment scheme that the lender has set up. However, it can often be the case that it is better to repay it early. However, if you do decide to repay the loan early – how can you find the money to do it?

Use Savings

If you have any savings it is always worth calculating whether it is better to use these to repay the debt or keep them where they are. The calculation that you will need to do is to find out how much interest you are getting on the money and how much you are paying out for the loan (in interest and fees). Then you will be able to work out whether it is worth paying off the loan with the savings. It is not always quite this simple though. This is because the savings might be there for a specific reason and spending them may not feel like the right thing to do, You may be saving up for something specific or you may like to have them as a buffer in case you need money in the future and cannot borrow. However, it is important to try to put emotions aside and think about the actual financial benefits of keeping them versus spending them. It is worth remembering that you can use the money that you would otherwise have been paying in interest to start to replenish those savings, once the quick payday loans repaid.

Earning more money can allow you to pay your loans back quicker.

Earn More

If you can earn more money you will be able to put that extra towards repaying the loan. This can be easier than you might think. If you already work, then you might be able to earn more there by asking for a pay rise or working more hours. However, this is often not very easy to do. Therefore, you will need to think of other ways to earn a bit extra. Fortunately, there are things that you can do which will enable this to happen. As well as trying to get an evening or weekend job, which could be tricky, there are various jobs that you could do from home which could be easier. You could take on some freelance work and there are websites where you can pick up jobs like this which can be easy to use. You could also do other things online such as surveys which are easy to do although the pay is low. These could still help you to get some extra money and may be more relaxing than a more conventional job.

Spend Less

If you reduce how much you spend then you will have more money left to spend on repaying the loan. This can be done by paying less for the items that you already buy or by buying less items. You could also do a combination of these. By asking yourself if you really want an item and whether it is cheaper elsewhere, you should be able to more easily save money when shopping. You should also look at items that you pay by direct debit such as utilities and think about whether you can swap provider and save money.

How to Make the Most of Your Money

Often when we have money it will almost just pass us by. We see it appear and then before we know it seems to be gone and we might even have nothing left and have to struggle to manage until we next get paid. This can be really difficult and stressful. It is better to try to make the most of our money and there are some different ways that we can achieve this.

Become Familiar with where Money Goes

It can really help to start by being more aware of where our money is going. Actually, taking the time to figure out how much you spend on various things can be really enlightening. It may even cause you to think about changing your spending priorities. Some people do not like the idea of examining their spending as they fear they might be forced to stop buying the things that they like. However, this is all about you being in control and knowing what you are buying not having to change things unless you want to. It is worth seeing what you buy that is necessary and what is not as well as you will have to pay for the necessities. Although, do start checking whether you can cut down how much you are spending in certain areas as this could help a lot. If you can pay less for your electricity, for example, you will not have to change your behaviour at all, just spend a little time comparing suppliers and switching over. These sorts of things are really easy to do and you can make significant savings without having less. Of course, you may identify some areas where you would like to buy less as well, but that will be up to you.

Get a Good Savings Interest Rate

If you do have some savings, then it is wise to make sure that you are getting a good interest rate on them. Compare what rates are being offered by different companies so that you can have a think about whether you should change to a different type of account. You will be paid significantly more interest if you are prepared to put your money in an account here you do not have instant access to the money. For example, there are some accounts where you are required to leave your money in for a year or several years and they will pay more. There are also accounts where you have to give notice to withdraw your money, perhaps a month or longer. It is worth considering whether these accounts will be of interest to you or whether you will need to make sure that the money is available to you immediately. Even if you need instant access you could find that you might be able to get a better rate than you are currently getting by using an account with a different bank or building society.

Repay Loans

Loans can be really expensive and if they hang around for a long time the cost of the interest will really mount up. This means that you could benefit from repaying them. Some loans, such as credit cards, do not have a repayment date and so you can leave the debt outstanding for a long time. This can mean that you will have lots of interest to pay over a number of years. If you can reduce the debt and get it paid off, then you will save that money in interest payments. This is also true of other loans. Some of them will have a monthly repayment schedule, but you might still be able to overpay them and repay them more quickly, although do check that they are flexible as some may charge a lot of money by way of an early redemption fee, if you want to do this.

Tips on Reducing Your Travel Costs

We all travel at times. Whether we use our car, use public transport to go to work or travel when visiting friends and family or going on holiday. All of these things cost money and they may add up to be really expensive. This means that you may find them hard to afford or find that you are spending mor eon them than you would really like to. It is something which can be addressed though.

Compare Prices

It might sound a bit obvious but there are a lot of people that do not compare prices when they are travelling. If you make a journey often, it is likely that you will always make it in the same way and not think about considering other options that might be cheaper. It is a good idea to think about whether there are cheaper options. You may have compared the prices when you first started taking the journey but if you do not do this comparison frequently you may find that prices have changed and there are better options that you are dismissing. Sometimes it is the case that the cheaper options are less convenient. You need to decide whether you think that it is worth the inconvenience for the savings that you will make. Consider the consequences of each and this should help you weigh up what you feel will be the best option. If you are really in need of the money then you may be prepared to go for the less convenient option but if you can still manage if you pay more then you might rather do that.

Consider Travelling Off Peak

It is often the case that if you travel at peak times it will be more expensive. For example, with a bus you cannot buy a cheaper return ticket before 9am and with flights they are more expensive at times of the year when people travel more. This means that it can be worth doing some price comparisons to work out when will be the best time to travel. Do this for every journey and you could make some significant savings. It is also worth thinking about car travel and changing the time for this as queuing in traffic is not efficient time or fuel wise and so travelling when it is quieter could be worthwhile. So make sure that you are aware of any cost differences that occur, either at different times of the day or different times of the year so that you can plan accordingly.

Reduce Travel

Of course, travelling less will really help to save money. This could be something you could do more easily than you might think. For example, if you incorporate several journeys into one, you will not have to pay out so much. So, if you pass a supermarket on your way home from work or can do a shop in your lunch hour near to the office, make the most of the opportunity to cut down your travel. You may also be able to visit several family members or friends and family on the same days rather than making separate journeys. It could make quite a difference if you manage to combine a selection of different journeys.

It is worth thinking about these different things because travelling can be expensive and by reducing this cost you can make a significant difference to how much money you have left for other things. Cutting down on a few journeys a year or changing the times on journeys to save money could really help in the long term. Small savings really can add up to make a big difference.

How to Make Budgeting a Breeze

Budgeting can seem like hard work. Having to keep track of what we are spending and making sure that we are not spending too much and leaving enough money for what we need can feel like a real drag. However, there are things that you can do to make it a lot easier.

Remind Yourself Why You are Doing it

It can be a really good idea to keep reminding yourself of why you are budgeting. It is likely that you have a real purpose and it might be that you are saving or something, trying to repay a loan or just ensuring that you make ends meet. It is wise to write this goal down and then stick it somewhere prominent, such as on a mirror that you look in regularly. Then you will have a constant reminder of why you are being so careful with your spending and it will feel much more worthwhile. It can be good to also think about how good it will be to achieve this goal so it makes it even more motivating.

Get into Good Habits

As you get into good spending habits then it will become much easier. Doing things like comparing prices or asking yourself if you really need things are really good habits to get into as they will ensure you do not overspend without realising it. The more you do this, the easier it will be and you will therefore find that eventually you will do it without even thinking about it. Remembering that this is a positive thing and that it will benefit you will help as well.

Make it Fun

There are different ways that you can make it fun depending on what you like. It can be fun to keep a note of how much money you are saving and try to spend less and less each day, week or month to have a competition with yourself. It can be rewarding to set a target and see if you can meet it as well. You could also compete with other family members to see who can reduce what they spend the most. You could look for deals on insurance, utilities etc and see who can find the best as well.

Carry Figures with you

It can be easier to keep track of everything if you carry the figures with you. Having a drawn-up table or a spreadsheet can really help which you could either have on your phone or in a notebook. Writing down each purchase you make or how much each shopping trip costs will really help. Not only will you notice what you are spending more and the prices of things, if you have to write them down, you will also be more aware of them and this will help you to think about whether you think that they are value for money.

Avoid Temptation

Once you have calculated how much you are going to try to spend and ways that you can cut down it can get much easier. One of the hardest things might be to resist temptation though. Often, we like to treat ourselves to a few things and this means that we can have a tendency to overspend. It is worth identifying where we are when we do this. It could be that if we going out into town then we just end up buying things and so by avoiding going there then we can stop that. It might be that we get tempted by things by the tills when queuing and if this is the case find something else to do, such as noting down the details of the items you are about to buy and then you will hopefully not notice them. Also try to shop with a lost and stick to it so that you do not spend too much that way.