HOW TO SAVE MONEY IF YOU EARN LITTLE: 5 PROVEN IDEAS (PART5)
HOW TO SAVE MONEY IF YOU HAVE LITTLE INCOME?
There are many ways to save money, but if you have never done it before or if you are currently in a tight financial situation, I advise you that instead of setting a long-term saving and investment goal (one that your mind can reach to feel like something difficult to achieve and therefore you are going to put it aside), start with easy savings challenges to meet.
WHICH IS BETTER: SAVE OR INVEST?
Although they are two different things and with different purposes, both are equally important for a good financial planning strategy, with a view to creating wealth.
As a general rule, saving should come before investing, since savings are there to cover those expenses that, during any eventuality, we will need to keep up to date to avoid incurring debt and maintain a decent lifestyle.
Instead, when we talk about investing money, we should think of long-term "savings", dedicated to increasing our quality of life and meeting future goals.
Now, choosing between saving and investing will depend on the current situation of each family or individual and they're short- and long-term goals; as well as your risk tolerance.
HOW TO SAVE MONEY EFFECTIVELY: 5 OF THE BEST WAYS TO SAVE MONEY IN NO TIME
1. DOWNGRADE YOUR CELL PHONE PLAN AND SAVE HUNDREDS A YEAR
Do you really need that unlimited data plan? These days we have free WiFi access in most public places, so with a little planning, you'll probably only need a 1 or 2 GB plan.
2. MAKE A GROCERY LIST BEFORE LEAVING HOME
Many times we go to the supermarket to get only a couple of things that we need and end up buying much more than what we originally needed. Make a list before you go out, and save money by sticking to it.
3. EVERY MONTH, PAY YOUR CREDIT CARD BALANCE IN FULL WITHOUT FAIL.
If you have a balance on your credit card, put this as a number one priority and eliminate that debt as soon as possible. The interests in credit cards are very high and will quickly eat up any savings capacity you have.
4. RADICALLY REDUCE YOUR EATING OUT
Eating at home is much cheaper, healthier, saves money, and can be fun. Organize a meal at home with family or friends where everyone brings something, and thus you will spend time with the people you love, economically.
5. STUDY FOR FREE WITH AN ONLINE COURSE
Do you think you need a master's degree to advance professionally? Or do you simply want to train to do your current job better? If so, consider taking online courses.
Nowadays it is not necessary for us to spend hundreds or even thousands of dollars to obtain training since online platforms such as Coursera or Edx allow us to take courses for free.
We can also earn certificates from the world's most prestigious online universities at a fraction of the cost if we choose to study virtually.
For example: Do you need an MBA to advance your career? Coursera has a completely online MBA, at a fraction of what it would cost you to attend almost any university in person, which translates into an excellent savings strategy and professional growth at the same time.
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