HOW TO BUDGET MONEY ON LOW INCOME – 5 IDEAS
Overview
At some point we’ve all made less than we’d like, but it’s still possible to budget money on low income. In fact, it’s a necessity.
For whatever reason, you’re not bringing in the amount you want to. But, you’ve still got to eat something, sleep somewhere, drive something, and wear something. How do you make that happen?
Here are a few ideas you can try to help you budget money on low income:
- Start A Side Hustle
- Live Below Your Means
- Consider Renting Cheap Or Downsizing
- Share Your Expenses
- Look For Ways To Cut Costs On Recurring Expenses
Let’s take a look at each of these ideas a little more closely.
(If you aren’t familiar with how to set up a budget, I recommend following the link below to get started there.)
Budget Money On Low Income, Idea #1: Start A Side Hustle
Alright, let’s put it all out in the open: You don’t feel like you make enough money to get by. Maybe you don’t. The first solution might actually be to make more money. In recent years, that’s quite a bit easier than it sounds.
Gone are the days when a second job meant delivering pizzas (though that’s still a good one!) or flipping burgers on someone else’s schedule. With the invention of ride-sharing services like Uber and Lyft, food delivery services like Uber Eats and DoorDash, and grocery delivery services like Instacart and Shipt, anyone can pull in some extra income whenever they have a few minutes to spare.
These are excellent options. I have personal experience with delivery, and between the base pay and the tips, you can make some decent money doing this just a little bit each day!
For those who prefer to set your schedule but also work from home, there are plenty of online opportunities to freelance in just about any field imaginable. Even those that require little to no background knowledge.
If you want to learn more about getting your income up, I have an entire section of this site dedicated to offering ideas and options. Check it out under “Extra Income” or click below.
Budget Money On Low Income, Idea #2: Live Below Your Means
Now, I know this is personal finance advice 101, but I do think it bears mentioning considering the topic of this article.
When you have a low income, you can’t budget your way into a high income lifestyle. Even a budget can only take you so far. Hence why I started with the suggestion to earn an extra income.
A difficult word for all of us to learn is “no.” But, when you find yourself earning a lower income, it’s a word worth learning. Especially when you see the social media posts of all your friends living it up and feel like you’re somehow missing out. Remember, they are only showing you the fun, not the bills.
Set your budget in place for the lifestyle you can honestly afford, not the one you wish you could afford.
Budget Money On Low Income, Idea #3: Consider Renting Cheap Or Downsizing
Speaking of social media posts, anyone else here get a little exhausted from the boots, blue jeans, and sweaters sitting on the front porch of a brand new massive house holding a sign that says “home sweet home” pictures? I mean, okay, congrats and all, but still.
There is such a temptation once we start making comparisons to want to rush out and put ourselves in bad financial waters for the instagram pictures. Don’t do this!
Instead, consider downsizing into something that frees up more of your money for you to live on and enjoy. My wife and I did exactly that.
Budget Money On Low Income, Idea #4: Share Your Expenses
Continuing on the downsizing idea, why not look for a roommate or two while you’re at it? Even if you own your home, having a friend or two paying you rent for a bedroom might be a way to generate an extra income for yourself.
In an apartment situation, it’s a no brainer. Just one roommate might cut rent in half. That’s not to mention utilities.
You can look for ways to share costs outside of living expenses as well. For instance, if you live near a coworker you might consider carpooling or finding some other sort of ride sharing opportunity.
Anywhere you can identify an opportunity to trim a line item in your budget by sharing that cost with someone else is a great chance to free up a little more money.
Budget Money On Low Income, Idea #5: Look For Ways To Cut Costs On Recurring Expenses
Finally, there are just some things you know you’ll pay for each and every month. Sometimes these things aren’t necessarily even “needs,” but just things you know you’ll want to spend some money on. That’s fine! But get creative about how to cut costs.
For instance, what if I told you cable was overrated? It is. You can pick and choose from a huge variety of streaming services and put together a great entertainment package that fits your preferences for a fraction of a traditional cable package.
What if I told you that you could eat breakfast and lunch for $20 a week? It’s true. I outlined exactly how to do it.
If you get creative enough, living on a smaller income is not only possible, but perfectly enjoyable!
Conclusion
Budgeting on a lower income is certainly going to require a little bit more creativity and flexibility than budgeting with larger numbers. But, it’s far from impossible. In fact, using the ideas we touched on here (and exploring them a little deeper through the links above) just about anyone should be able to create an enjoyable lifestyle, even on a lower income!
Let’s review our ideas one more time:
- Start A Side Hustle
- Live Below Your Means
- Consider Renting Cheap Or Downsizing
- Share Your Expenses
- Look For Ways To Cut Costs On Recurring Expenses
And as always, regardless of your money goals, you can “Bank on a Budget” to get you from where you are to where you want to be!
Set your budget in place for the lifestyle you can honestly afford, not the one you wish you could afford.
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