The art of living on low income – Best ways to manage funds

With the ever-rising prices of our daily consumables, living on the same income has become the biggest challenge. The increasing level of inflation is nowhere matched with an increase in our pay scale. Therefore, we must be able to manage our income and expenses. Here are some of the tips that can help us cope with such circumstances.

1. Track your expenses

This is the first thing we should do. Track our expenses to figure out where exactly is our money going. Next, make a list of all the items that are unnecessary and therefore, can be avoided.

2. Try saving!

Plan our budget in a way so that we are covered for the entire month and yet we are able to save a small portion of our income. Even though saving is not easy but one can always try to balance our books and yet save an incremental amount.

3. Avoid buying what is not needed

Once we have made the list, the next most sensible approach is to avoid buying items not needed. Even though it is difficult to resist buying some of the best products in town, we should try to curb our desires and focus on necessities. Asking ourselves if we really need a new product before buying it out of our budget, can help us manage our funds effectively.

4. Choose less costly substitutes

Until our financial position is stable, we can choose to buy substitute items that may be of lower quality than the ones we normally buy. This will help us cut on our costs further. A little research online or may be in a supermarket will help us find something similar at cheaper rates.

5. Look for discounts

There are always amazing discount packages being offered at supermarkets and big stores. Purchasing of day to day necessities are unavoidable. However,  they can be bought at discounted prices and we will be able to save a significant amount of income in the process.

6. Consider trying on used items or take them on rent

If we plan on using a few things for a short time, we can try used items which are in good condition and cheaply available. Also, renting things out instead of buying them can be a good option as there won’t be anything to worry regarding the arrangement of a specified sum for it.

7. Say no to debt

While obtaining a debt during difficult times may appear to be a very lucrative option, it can be the most dangerous one. It’s like a poisonous snake stuffed in a cute rabbit costume. This is mainly because the accumulated interest payments along with the principal repayment turns out to be much more than we would have actually received.

We always prepare for our worst times yet unexpected bad days leave us in distress. Desperate times call for desperate measures; hence, these tips can be adopted temporarily to survive the unfavorable financial conditions.