Each time your paycheck flows into your bank account, it flows right back out to the companies you owe money to. And you’re left wondering where it all went.
The reality is, research shows that half of Canadians live paycheck to paycheck. And when you’re trapped in this cycle, you can’t afford to save.
Or, can you?
If you’re asking yourself, “How can I save money on a small salary,” here’s a rundown on the best tips on how to save money this year.
Let’s get started!
How Can I Save Money on a Small Salary? Take a Look at Your Housing-Related Spending
If you’re wondering how to save money from your salary, consider trimming your housing costs. This is an important part of any personal savings plan because your house is likely one of your biggest monthly expenses.
As a general rule of thumb, you should shoot for keeping your housing costs at less than 35% of the income you bring home each month.
If you own your home, be sure to keep close track of how much you’re spending on your utilities. Then, try to cut back wherever you can so that you can save more of your money.
For instance, avoid wasting water, and keep your lights off when you’re not using it. In addition, keep your thermostat down during the cold months, and keep it up during the summer months.
Also, try to keep your house in the best shape possible by performing home maintenance tasks. This can prevent you from having to make expensive repairs down the road.
Extra Housing Cost Tips
If you have a larger space than you need, consider renting out one of your rooms as well. This may help you to decrease your house payment each month.
If you rent your residence, considering finding less expensive housing in your area. Alternatively, you could ask your landlord if you can perform some work on their property to decrease your rent payments. Then, you can stash the surplus in your savings account.
If you’re into property management as a career, you might also want to get an apartment where a property manager role needs to be filled. If you end up becoming the property manager, you’ll likely receive a free apartment.
If you’re serious about saving money each month, you may want to evaluate your entertainment spending habits as well.
The truth is, frequenting bars, restaurants, and movie theaters can quickly add up. So, try to start instituting potluck dinners in your home rather than gathering at local eateries with family and friends.
Also, try to stick with watching movies at home rather than going to the theater. Then, place what used to be your movie theater money in your savings account.
You can additionally save money by capitalizing on free entertainment opportunities, like hiking or biking.
If you do go out for entertainment, try to stick with venues that offer coupons or deals to save you some money.
Also, try to avoid going shopping as a form of entertainment. The more you can avoid purchasing items you don’t need, the more you can save money for a rainy day.
Another important way to save money is to re-evaluate how you shop for your groceries.
It’s easy for a four-member family to spend around $1,000 per month on groceries. However, if you plan out your meals, you may be able to trim this total by 50%.
For starters, create a menu for each week. Then, stick with this plan during your shopping trip so that you don’t spend more money than you need.
Also, try to plan your meals around what is on sale from one week to the next.
Furthermore, try not to buy junk food, like chips, cookies, and soda. These items can be costly financially in addition to being costly to your health.
Learn how to prepare food from scratch versus purchasing pre-made food can also help you to trim your grocery expenses and stash more cash.
More Tips on How to Save You Money
If you’re wondering how to increase savings, another wise move is to automate your savings. This is invaluable no matter how little money you may bring in each month.
If you schedule a specific amount of money to go into your savings from each paycheck, you’ll quickly get used to not having it. And this will allow you to save sums of money over time with minimal effort.
Of course, sometimes unexpected financial emergencies happen. So, if you still find yourself in a bind, you may want to consider applying for an online loan as well.
This type of cash loan can help you to supplement what you have saved up on your own to meet any immediate financial need.
How We Can Help
In addition to answering the question “How can I save money on a small salary,” we offer convenient loans for people who need cash fast.
What’s great about working with us is that more than 90% of our customers receive same-day loan request answers. In addition, our loan applications are paperless; you simply complete the application online and wait for us to send cash to your bank account.
We also offer loans that do not require credit checks. And our payment schedules are extremely flexible.
Get in touch with us to learn more about how our loans can quickly give your bank account a boost when you need it the most this year.