How To Plan A Budget On A Low Income
Budget planning is essential if you’re battling inflation or stuck in a low-paying job. Sometimes, low-income individuals and families might find it challenging to make ends meet, but a proper budgeting strategy will help make things much more manageable.
No matter how much you make, there are quite a few ways to get more in control of your finances. Keep reading to discover our top tips on saving money for your goals, even with a low income.
How Can I Plan A Budget On A Low Income?
List Your Income
You can’t plan a budget if you don’t know how much you earn. So, make sure to list all of your sources of income. Those include salaries, side hustles, child support, social security, and so on. Use the lowest monthly income as a benchmark if your income tends to vary.
List Your Expenses
When listing your monthly expenses, take care of your Four Walls first. Write down how much you spend on shelter, utilities, transportation, and food. Next, include all the other monthly payments that did not make it into one of the Four Walls categories.
For example, monthly subscriptions, insurance, debt payments, and so on. After that, think about any other expenses that you might have. You wouldn’t have to get the exact costs; you need to know where your money goes.
Follow The 50-30-20 Rule
Now, take a look at your expenses. Ideally, you should spend 50% of your income on the Four Walls and other ‘needs’ and 30% on your ‘wants’ (usually includes anything related to entertainment). The 20% of your income that is left should be set aside to form an emergency fund.
If you can save more money, you should do that. But if your ‘needs’ or ‘wants’ require more than 50% and 30%, you must start looking for ways to cut costs and increase your income.
Find Ways To Increase Your Income
Learning how to plan a budget on low income won’t make sense if it doesn’t allow you to start working towards your goals. That’s why trying and discovering ways to increase your overall revenue is essential.
- Ask for a raise – it can be a stressful experience, but you’ll be surprised to find out that around 70% of workers who find the courage to request a higher salary get some increase.
- Get a side hustle – nowadays, there are plenty of ways to earn a few extra bucks. You can freelance, babysit, or make money by completing online surveys.
- Apply for government programs – you might be able to take advantage of such government programs for low-income families as SNAP, Medicaid, CHIP, etc. Go to benefits.gov to determine what federal, state, and local programs you may qualify for.
- Food: try meal planning, shop at cheaper grocery stores, and use coupon apps.
- Utilities: change your air filters to increase the efficiency of the equipment, adjust your AC or heat, run your dishwasher and washing machine during off-peak hours, and install LED lights.
- Transportation: use a bicycle if you can, join gas rewards programs, use rideshares more, and carpool to work.
- Entertainment: search for free events in your city, take advantage of free museum days, and have family game nights.
- Shopping: remove your credit card information from your favorite retail websites and always compare item prices before purchasing.
When Can I Apply For An Installment Loan?
If you have just found out how to plan a budget, the chances are high that you haven’t yet managed to establish an emergency fund. And even if you have been saving for months already, it doesn’t necessarily mean that you’ll have enough cash to take care of an emergency when it happens. In such a case, an installment loan is a convenient option to deal with unexpected medical bills, car repairs, and other urgent expenses.
Why Choose Delaware Title Loans, Inc.?
When applying for an installment loan, choosing a reputable lender that can be trusted and will keep your personal information confidential is vital. Delaware Title Loans, Inc. ticks all these boxes. Furthermore, you can expect the following benefits:
- You might get approved for a signature installment loan in only 30 minutes.
- We consider borrowers from all credit backgrounds.
- You do not need to provide collateral to take out a loan.
- You might be able to qualify for up to $1,500.
- You might receive the cash the same or the following work day.
Get Much-Needed Cash In The Shortest Timeframe!
Knowing how to plan a budget is essential, and low-income individuals are no exception. But no matter how good you are at cutting costs, life happens, and, at one point, you might have to deal with an expensive bill that needs to be taken care of.
That’s where we at Delaware Title Loans, Inc. can help. We have simplified the installment loan process, and, in some cases, you might get your hands on urgent cash the same day. Fill out the online request form to get started right now!
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.