HOW TO SAVE MONEY ON A SMALL SALARY IN 2021

 Living on a SMALL WAGE in 2021 can be difficult at the best of times, but saving money on a small salary can be nearly impossible. Almost, but not quite. In today's post, we'll look at a few ways anyone can successfully save money and save money for the future - even on a tight budget...

How to Save on a Small Salary in 2021

The key to saving money on a small salary or income is very simple: you need to start by increasing the gap between what you earn and what you have left (if anything). 

Then, you need to set up a system that will automatically transfer that disposable income into a savings account, rather than swallowing it in your daily life.

But how?

Increase Your Income.

First and foremost, you can find ways to increase your salary and the amount of money you earn, and in doing so, you'll have extra money to put away. While this may sound like a daydream, there are so many options available that almost everyone is capable of doing.

Basically, consider your current paying job - is there a way to work overtime, get a promotion, transfer to another higher paying employer, or even get a second job that matches your primary source of income?

From a slightly more lateral perspective, there are all sorts of small businesses that can be started for next to nothing. My personal favorite is starting a blog - which can be done for just a few dollars each month.

Many bloggers have started with nothing and ended up building an income greater than their full-time job. 

There are, of course, all sorts of other low-cost business opportunities available to you. You could, for example, start a pet sitting business, import products from China to sell on Amazon (better known as "Amazon FBA") or you could write books and publish them on Kindle.

The important thing is: don't think your income necessarily needs to be fixed. Regardless of your situation, there are ways to learn new skills (or use existing ones) to make more money.

Starting a blog, for example, offers total flexibility, and many stay-at-home moms and busy professionals manage to devote a few hours a week to developing their blogs around their other commitments.

Earn A Cashback.

Another great way to save money on a small salary is to earn rewards and cashbacks every time you spend money on everyday purchases. Sign up with cashback apps before you make a purchase, you will receive different product offers that you can claim cashbacks on. If you make a purchase of one of these products, you'll simply take a photo of your receipt, submit it, and receive the money in your account. Once you reach €20, you can claim your money and will receive a check in the mail. Cool!

Over time, these cashback accounts can really start to add up, allowing you to find even more money to add to your savings without necessarily having to change your spending habits.

Challenge Everything.

A few years ago, as I was struggling with my debt, I decided that I needed to check my spending in order to reduce my budget as much as possible. Despite being reasonably frugal at the time (or so I thought), I managed to cut my monthly expenses by over 10% without feeling too pinched.

The secret is to only spend with your debit card for one month. Then, at the end of the month, review your bank statement carefully, checking everything you spent. Ask yourself if there are any expenses you could cut back on completely without too much pain. Also, think about how you can cut back on any other expenses.

I found, for example, that I was paying for some online services that I hadn't even used in months. I've also been able to reduce our TV package, my car insurance, and my cell phone rate, with each change helping me save more money.

So check every penny that comes out of your bank account and aim for incremental improvements each month, getting smarter and smarter with your budget cuts until you regularly have a comfortable amount of money available for your savings account.

Automate Savings.

A common mistake we all make is to consume excess money in our daily lives.

A safer option for those who really want to save money on a small salary is to have your bank automatically transfer an agreed-upon amount of money each time you get paid into your savings account. This way, you'll barely notice the money "disappearing" and won't be tempted to spend it during the month. Remember the old adage: Pay yourself first.

Get the Best Interest Rate.

Finally, as I've mentioned elsewhere, the interest rate you get on your savings can have a remarkable impact on the amount of money you have later in life. Even a difference of 1% or 2% can have a huge impact.

So no matter how much you can save on a regular basis, you owe it to yourself to get the best interest rates possible. If you're willing to take a little risk, you might want to consider turning your back on traditional bank accounts - with their terribly low-interest rates - and instead consider one of the higher-paying options.

As you can see, while trying to save money right now may seem hopeless, there are all kinds of tactics you can use to put money away for the future on a small salary. Even those with small salaries and lower incomes still have a real chance to save gently, no matter how tight your budget may seem right now.