Perth News

Managing on a low income

Many Western Australians believe that they don’t make enough money to save. As a result, this has become one of the most common reasons why they won’t even try saving.

For someone to be able to save money, he needs to pay attention to his day-to-day expenses. The small expenses that you make everyday are important because if you left them unchecked, these expenses tend to pile up. It might be easy to overlook these small amounts of money but they will turn into hefty sum at the end of the month.

Perth news
Low income

In order to save some money, some people choose buying used stuff instead of buying brand new. Yes, some used items can be quite difficult to be found in a good condition. However, you should also consider the amount of money you will be saving. Thrift shops generally sell clothes in good condition, varying from decent to brand new. Aside from clothes, you can also buy used gadgets, appliances or even car, but you need to make sure to ask an expert’s advice if the current condition of the item is worth the price.

Smart budgeting and financial management is incomplete without tracking your expenses. Obviously, you will never truly know how much money you’re spending or saving if you don’t diligently track it. Without expense tracking you won’t know in which area you’re overspending, which area actually needs more funds and which expenses can be cut altogether. Tracking your expenses doesn’t have to be difficult especially nowadays when you can use a lot of personal finance apps you can download for free.

Finally, you should get out of debt. This is so important especially if you have low income. At some point you must consider living frugally for a year or two, so you can put your extra cash towards your debt. When you don’t have credit card debt, loans, car and house mortgage – that is when you have financial freedom.

For more on how to manage your money if you have low income, read this: https://www.moneysmart.gov.au/managing-your-money/budgeting/managing-on-a-low-income