5 Ways To Save When You Are A Low Income Earner

Financial stability is something everyone wants to achieve. The best way to go about it is saving and investing. However, most people feel like they can’t save or invest because they earn very little money. This is not true because, no matter what you earn, you can still save.

Savings don’t have to be big you can save as little as 20 shillings a week and it would still make a difference.

Here are ways you can save When You Are A Low Income Earner

1. Cut down housing costs

Yes we all want to live in nice neighborhoods but if you cannot afford a 3 bedroom apartment in one of those posh areas there is no need to try.

I recently heard a story about someone who earns 20K but leaves in a one bedroom house that costs 11K. First of all this person is alone there are no kids so there is no reason why he can’t stay in a bed sitter. He can easily find a nice bedsitter for half that price and have more money left over to put into savings.

Remember your rent should not be more than 25 percent of what you earn.

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2. Plan your shopping.

There is nothing worse than impulse buying. This destroys your budget and ensures that you do not get to save anything.

So it is important that you come up with a shopping plan detailing how much it will cost to buy all the things you need and sticking to it.

Don’t go buying things you had not planned for. This will free up more money that can go into saving or investing.

3. Look out for deals

There is no point in spending 50K buying something that you can buy at 30K. Before buying stuff you should always window shop and ensure that you are getting the best possible deal.

Being a smart buyer is one way to ensure you are always cutting down expenses which is a god way to save.

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4. Check the small stuff.

In order to increase your savings you need to find the places you can save even 20 shillings. Nothing is too small when it comes to savings. So check on your spending habits and see where you can cut costs.

For example, pack lunch to work every day to ensure you don’t send too much on food, walk home from work if possible and take cheap transport i.e. use buses that cost less as opposed to spending more in fancy matatus.

5. Stay Out Of Restaurants

This does not mean that you should never eat in a restaurant. What is means is that you should not make it a habit.

Why should you spend thousands of shillings every week eating in expensive restaurants when you could save the money and invest instead?

You can eat at a restaurant once every two weeks instead of every weekend and this will provide you with some extra cash that you can use to better your financial situation.

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Just because you have a small income does not mean that you cannot save or invest to better your financial situation. It is high time we get rid of the misconception that saving is only for people who earn a lot of money.

Do you have any more tips? Leave them below.

The writer is a Digital Marketer at Career Point Kenya. Email: michelle@www.careerpointkenya.co.ke