Living on a single income in today’s economic scenario is not less than battling with your enemies with a rusted outdated gun. It’s a human ingenuity that their demands and wants are never-ending. They tend to go for new things, better living, better lifestyle etc., but what’s about the income? It never grows in a geometric progression (not applicable for a drug peddler or other unethical earning means). And living on a single income is like heaping of sorrow upon sorrow. Then how to save money?
10 Tips for Living On A Single Income
If you are living a life amidst acute financial worries still you can have a better living standard than what you have now. If someone wishes to live a moderate life with his existing income, he can easily achieve it by following some easy but effective tips. It’s never assured that more the income, better the living. There is no linear relationship between the two. But if you manage things well, even a single income can give you a better scope to save.
Best Ways To Save Money
The following tips will give you the notion and enhance you saving skills so that you can live off a better life on a single income. They will also give you an idea of how to save money?
1. Start Saving:
This is very important but everybody wonders how to save money? Whatever be your income is, try to save even a fraction of it. A pie saved today will give you a larger benefit at the time of your crisis. The best thing to improve your saving habit is to go for a recurring deposit in a bank or start a mutual fund SIP (systematic investment plans). You can also do one thing, keep a piggy bank at your home and try to deposit whatever you save after incurring an expense. This is true that you will not see any drastic improvement in your lifestyle, but in the long run, you will have two vital things- one a hefty fund and number two which is more important, a good saving habit.
2. Cook at home:
Cooking at home is the next best way to save a lot of money. Though this requires some extra effort and time out of your regular schedule, cooking at home is a great saver both in terms of money and health. Going to restaurants once in a month or two is okay. But taking foods and drinks at restaurants, bars, pubs etc. on frequent occasions is neither beneficial for your pocket nor for your health. You can have the same food at home for about half of the price charged by restaurants. For better results in this regard, you can make a meal plan and cook accordingly. This will give you a variety of tastes and at the same time help you to plan things beforehand. Meal planning proves very effective in judiciously shopping your requirements.
3. Use Library Books:
If you are studying or your children are studying, you need lots of books. But it’s always not possible to buy every book you need. Better use of library books. Take membership of different libraries and use their books whenever you need it. You can easily enlighten yourself at a minimum cost, by borrowing books from libraries. In addition to the economic advantage, you may go to the libraries where you can find some good people to discuss your points or queries.
4. Shop Second-hand/Discount sales:
People may not find this very attractive, especially those who have an obsession with brand new things. But if you are on a single income, that doesn’t leave you enough space to buy brand new stuff, may try this option. The advantage of this option is that the product you buy on second-hand basis will serve your purpose at the half of the original price or below that. Interested people may register themselves on various apps or websites dealing with buying and selling of second-hand products. If possible try to do your shopping at the end of the month- you may get better discount opportunities in comparison to other times of the month.
5. Subscribe to unlimited plans:
The fierce competition among the telecom and internet companies has given the common people some great discounted price benefits. Those companies are providing lots of benefits like unlimited data plan, one family billing etc. You should keep a regular watch on such discounts and benefits, and take the utmost advantage out of it. Because choosing a suitable is one of the best ways to save money. The more you research about those plans you can find the best plan suitable for you. You should read current blogs and articles to evaluate the plans and their service qualities of various companies.
6. Minimise waste:
This is for everybody, be you a daily wager or a multi-millionaire. First of all, you start with your food. Take your food as much as you need, don’t waste. Same way cook accordingly. Preserve the residue in the refrigerator and utilize judiciously. If you are in a hotel or restaurant pack the leftover food for yourself or anybody who needs that. This way you are not only saving your money but saving your society too. The next big thing is to save electricity. Instill the habit of switching off the electrical or electronic appliances when they are not in use. There are many wastages in our daily life (need to think about) which we can minimize or nullify with our small behavioral changes. You can also reuse things which are not in their best form but still have a considerable utility. Remember optimum utilization can help you live a better life with limited resources.
If you are on a single income, budgeting is a must. Prepare a budget for the next month at the end of the current month. Budgeting gives you an opportunity to plan things according to its priority. You can have a better control over your expenses and restrict them within their predetermined limit. Budgeting is a tool not only to save expenses but a planner for investments too. It gives you an idea about what is your investment expense ratio and the growth in savings over the time. A comparison of budgets to the corresponding previous period allows you to understand the difference between the key figures and accordingly modify/change plans.
8. Close your credit card account:
If you are living off on a single income, it is advisable to close your credit card account. They are luring and pricey. Most of the credit card gives you lucrative offers every now and then. As an offer message beeps in your mobile, out of normal human behavior, you get excited and distracted at the same time. It leads you to buy things even if you don’t need it. One survey shows that with doing undisciplined shopping through credit cards gradually becomes a debt trap for its customers.
9. Don’t show-off:
Show-off is a killer. Most of us show off things out of a competition. A competition within the society. We show off to our friends, relatives, colleagues and so on. This tendency lets us spend more for things that are either of no requirements for us or are beyond our usual purchasing limit. If you are surviving on a single income such luxury may cost you hard and let you pocket emptied.
10. Go for a passive income:
All the previous points are about saving money, and this one is for generating some extra income from home. How to generate your passive incomes? For example, if you have a big house, you may rent out a part of it. This is a very good source of income for which you don’t have to put any extra effort. Next, if you have skills in different fields, you may go for online part-time jobs. There are various types of jobs over the internet. Be it writing, designing, gift making or anything from your niche. There are various sites providing online job opportunities which not only giving you money but a big exposure to take your skill to a professional level. These side incomes add a great financial support to your single source income.
The points given above are amongst the best ways to save money. They are tried on many occasions. Their outcomes may differ in quantity, but the results are always in positive. You may not have that much of financial worries, but following the above points will always give you the best opportunity to live a better life.