In the current economic climate, Low-income families You face enormous challenges. One of the biggest obstacles is living in fear that a minor accident or missed work day will push the family into poverty.
Financial instability is a phenomenon faced by thousands of families.
Working full time, taking care of a family, and trying to meet their basic needs can feel overwhelming and isolating. Fortunately, there are several strategies you can implement to help you move from low income to financial stability.
Essential tips to help low-income families thrive
To improve your financial situation, you must first Learn how to manage your money. If you need help getting started, here are some tips to show you how.
1. Utilizing the Bank’s resources
Being unbanked or underbanked creates many financial barriers. Instead of turning to payday lenders or other unsavory sources for your financial needs, here are some tips for accessing banking resources without getting scammed.
Get a secure credit card
If you don’t qualify for a regular credit card but want to get started Improve your credit ratingA secured credit card is a great first step. With a secured credit card, you make a deposit of generally a few hundred euros.
Once you do that, you can borrow against that amount. Often, after using the card responsibly for a while, you can upgrade to a regular credit card. A secured credit card can also help boost your credit score enough to apply for a new card.
Open a checking account
A checking account is one of the essential tools that you should have in your personal finance arsenal. Unfortunately, some low-income families are denied access to traditional checking accounts. A setback is often due to past issues such as unpaid fees or bad checks.
If you don’t have access to a traditional checking account, consider a Online checking account. These accounts generally have more requirements than traditional checking accounts, such as monthly fees. However, they are often better than alternatives such as money checking services.
Consider alternatives such as Lending Circles
You can also turn to non-traditional sources of money. One of those places is the Lending Circle.
These groups of people lend money to each other at little or no cost. The group helps each other raise money for things like down payments, car loans, or… Debt repayment.
The Lending Circle works by asking each member to contribute a fixed amount each month, such as $50. Then there is a rotation of which member receives the money collected that month.
If your lending circle has ten members who each contribute $50 per month, each month one member receives $500, the process rotates until everyone has a turn.
2. Take care of your health
The saying goes: we have nothing if we don’t have our health. But our health is often one of the first things we give up when our bank account is down.
Although many medical expenses are unavoidable, the more you take care of your health, the less you will end up paying for health care over time. Low income family can try these tips to invest in their health.
- Replacing meat meals with fruits and vegetables can save you around €23 per week.
- Quit smoking a pack of cigarettes a day, and you can save about $13,000 a year.
- Schedule regular check-ups and address any health problems as they arise.
- Try to lose weight if you are overweight.
By using the above strategies, you will improve your health in the long run and learn how to stay healthy while sticking to your budget.
3. Make more money
One of the best ways to move from low income to middle or even high income is Earn more money. Of course, this is easier said than done, but there it is Ways to increase your income.
Go back to school or take classes online (low cost or free)
Attending higher education is a big commitment and can take away some of your current income. However, it can greatly increase your future chances. If you’re not ready to go back to a traditional school, there are many educational resources online that are free or inexpensive.
These include Coursera, which can give you the skills you need to advance your career or start a new one.
If you want to go to school for a degree, there is also financial aid available for low-income families. Among the most popular forms of assistance are grants and scholarships.
Ask for more money
Another way to make more money? Ask about it. Negotiate a raise with your current employer It is one of the fastest ways to increase your income. You are likely to be late for the increase.
Start a complementary activity
finally, Starting a side business Another way to increase your income. Although not all low-income families have enough time for a side activity, you should consider it if you have some flexibility in your schedule.
a complementary activity It is one of the best ways to move from low income to middle income and beyond. Remember, you want to be intentional and save some of any overtime or extra income you earn.
Be informed, make a plan and take advantage of the resources available.
Help exists for low-income families, but you must take the first step to receive it. You can start moving your family in the right direction by educating yourself and being proactive about your finances.
Remember to follow the advice here that applies to you and your family. By implementing financial strategies such as increasing your income, taking advantage of lending circles, and focusing on your health, you will see a huge difference in your finances.
Also, taking advantage of government resources can be a short term solution to support your family. Don’t forget that you can Overcome your financial difficulties !