Whether you’re a part-time worker, contractual, or a full-time entry-level employee, it’s crucial to have savings to back you up when emergency financial situations arise. However, having a fixed income makes budgeting very difficult.
The U.S. Department of Housing and Urban Development defines “low-income” families as having less than the State’s non-metropolitan median family income. So how can a low-income earner still save money with very limited resources?
In this post, you’ll learn some helpful saving tips for low-income earners so you’ll have more control of the money you’re spending.
1. Be an Empowered Consumer
Whether you’re buying online or in a brick and mortar store, it’s important to know smart ways to save money still. As a consumer, you have to keep yourself abreast of the latest tips on how to buy goods and avail services using smart decision-making. By having an informed choice, you can empower yourself to get the most value out of your hard-earned money.
Here are some tips and tricks to empower yourself as a consumer:
- Always Compare: Compare the size, color, product ingredients, nutrient content, and other product details of the item you’re planning to buy. By doing so, you’ll be able to identify the best product that can offer you the greatest benefit at a price you can afford without compromising its quality and effectiveness.
- Don’t Be Fooled: Prices can be deceiving. You might think you’re getting a good deal but end up paying more money. Before you sign an agreement or contract for services you want to avail, such as plumbing, electrical, landscaping, or moving services, make sure to get a rough estimate of the total cost you need to pay, including miscellaneous or additional fees.
- Don’t Get Stuck: Sometimes, people are used to buying the same products or using the same services. However, this practice gets you stuck into a steady money-spending situation. Investing in the same low-quality items, like appliances or devices, can cost more in repairs and replacements.
2. Use Promo Codes
While it may take some effort, finding and using promo codes can help you save money on your future purchases. Just imagine the savings you can get in a month or quarterly basis with as little as five or ten percent discount off the fixed price of the regular items you purchase online or in physical stores.
Here are some tips and tricks when using promo codes:
- Search the latest promo codes in trusted coupon sites, such as gopromocodes.com.
- Take note of the expiry date of promo codes so you can use them before they lose their value.
- Keep a note in your smartphone or oversized calendar on available promo codes you can use on your next purchase.
- Don’t purchase any high-value item without thinking of possible discounts you can get using available promo codes online.
- Always ask or attempt to use multiple promo codes in a single purchase to get more savings.
- Apply promo codes on high-value items and bulk purchases for more savings.
- Avoid using promo codes on getting discounts for your wants or unnecessary items. Make sure to use them wisely, most especially applied to your needed supplies, like detergents, toiletries, baby essentials, and perishable goods.
3. Open a Locked Savings Account
With a locked savings account, you can increase your returns. A locked savings account refers to a type of savings account that “locks” away from the account holder’s money, to restrict opportunities to withdraw any funds from the account.
Here’s how to open a locked savings account:
- Inquire banks offering such type of savings account, though most banks offer such savings capability. In banking terms, it is called a certificate of deposit or CD. You can lock your money from one month up to five years as your money on the bank earns a fixed interest rate. It means that even if interest rates drop, your money won’t be affected under the CD.
- In your online banking account settings, you can choose the target date to lock your savings account, including the amount you want to save. Within the span of time you entered, you won’t be able to touch the funds, thus locking it from withdrawals.
There are plenty of practical ways to save money, like envelope technique, piggy bank saving, and not owning more than two credit cards. The above-mentioned tips will help you save money for the long-term, allowing you to handle your hard earned money successfully. Even if you’re not earning that much, applying these tips will help you get empowered to make the most out of your money.