How to save money with minimum wage
Although it’s not always the case, earning minimum wage or less can make it difficult to save money.
Sure, you might want to have money for emergencies (or just for fun), but if you feel like you’re living paycheck to paycheck and are struggling to make ends meet, starting saving may seem a long way off. In fact, you can start saving at minimum wage.
Here are some tips to help you get started and build a regular savings habit.
Make a budget
A budget is a spending plan that directs your money toward your goals. As soon as you own BudgetingYou can plan ahead how you will spend your money for the next week or two or the entire month.
Many people find that when budgeting, they can identify areas where they spend a lot of money. This is money that they often end up devoting to their savings goals. For example, you may be able to reduce the amount of money you spend on fast food or entertainment and spend it on savings instead.
There are a variety of budgeting methods, from complex applications to simple paper and pencil. For my part, I tend to use a pen and paper!
Reduce your expenses
Once you’ve categorized your expenses, look at categories of expenses that you can eliminate or reduce Increase your savings. Here are some ideas to get you started:
- Accommodation – Consider finding a roommate or moving in with family.
- cell phone – Choose a cheaper plan.
- communications – Trade Uber rides for public transit.
- wireless – Share with a neighbor and split the bill.
- outings and recreation – Set a limit on how much you’re willing to spend each pay period when eating out.
Increase your income
Just because you earn minimum wage doesn’t mean you can’t. Increase your income. There are many ways to earn money in addition to minimum wage:
- Drive with inDrive or Uber.
- Food delivery with Uber Eats or Deliveroo.
- Grocery delivery with Shopopop.
- Babysitting with Yoopies.
- Sell items on Leboncoin, Ebay or Facebook Marketplace.
- Rent extra space in your home Airbnb.
- Share your car to earn money with GetAround.
Once you’ve earned extra money, commit to putting some or all of it into your savings accounts. Make sure you do it on purpose, or you’ll end up screwing up spend money You earn more!
Automate your savings
Once you determine your budget and find some extra money that can be transferred to your savings accounts, you can be sure to meet your savings goals with a little automation.
If you have direct deposit, your employer should be able to split your paycheck into separate accounts. You can complete a new direct deposit form and indicate the amount you would like to deposit into your savings account.
Use savings and budget apps
Your savings goals should figure prominently in your budget. If you don’t want to automate your savings through direct deposit, you can also use apps like revolution To help you save money without much hassle.
Use investment apps
Investing in stocks Similar securities can yield returns of 5%, 10% or even more thanks to the “magic” of compound interest.
the investment applications They differ in their approach and the way they work, but for the most part they are easy to use.
the Robo-advisors Your money can be invested for you. If you don’t feel comfortable with it Search for stocks And try to get to know yourself Stock marketThese apps can help you Start investing anyway.
Typically, you will be asked about your investment goals and the apps will make investment decisions for you. As long as you make regular contributions to your account, the investment will work for you. You officially have no more excuses not to start investing!
If you want to use investing as a way to increase your savings, here are some apps to check out:
IQ Option
IQ Option can help new investors They start with just €10, which leaves them with no excuse not to invest.
my small investment
If you are looking for a bot advisor, why not invest with it my small investment ? Mon Petit Placement automatically invests your money based on your risk tolerance, leaving you nothing to do but watch your investment grow.
Low annual fees and a minimum investment of €300 to start letting everyone in Your portfolio growseven with a file Limited budget.
Conclusion
Earning minimum wage doesn’t have to stop you from reaching your savings goals. While there are challenges in starting and maintaining a good habit of saving on minimum wage, it is not impossible.
With a little creativity, discipline, automation, and commitment, you can achieve any financial goal, including saving and investing.