5 of 32

Write now Article Tools

8 tips on how to manage on a low income

You look around you and it seems everyone is doing better than you. They have bigger houses, better jobs, more expensive clothes and cars, and bigger boats. All you have is a small income, and bills you struggle to keep up with. How can you manage on a low income?

First, don't keep up with the people around you. Not everyone who has a 4 bedroom house can afford it, as the country has seen with the house bust. A better job can always be lost when the branch office is closed down. These things can just be someone trying to look successful when they really aren't. Wouldn't you rather be successful than just look it? Here are 8 tips on how you can manage with what you have.

#1 - Live at a place you can afford

Experts say that if you are spending more than 30% of your income on rent or a house, that's too much. This is because you have other bills, and if you spend too much on the place you life, you won't have enough left over to eat, pay bills, and put a little savings away. If you have a low income, it can limit your choices of where you live. But you still have options - government subsidized housing, renting a little ways out of town is always cheaper, sharing a place with roommates, or renting a room in a house are all options on how to lower your rent costs. If you spend too much on rent, you will fall farther behind each month.

#2 - Own a car only if you need to

Cars are money pits. Never let someone tell you that a car is an investment. An investment is something you buy that goes up in value. A car will always go down, unless it's old enough to be a classic car which is a different matter. What do you need a car for? That is the most important question and is closely followed by asking how much you can afford to spend on a car. After you are done with payments, insurance, gas, and repairs it can burn up a lot of money that you didn't expect. Compare that to taking the bus all the time - a monthly bus pass is likely less than you would spend on gas for a month, let alone all those other expenses. If you already own a car, and it's too expensive - it's never too late to get rid of it and start taking the bus. If you don't like taking the bus, just keep in mind the 100s of dollars you are saving each month that is your ticket to the better things in life that you want.

#3 - Don't eat out more than once a week

One of the easiest ways to spend your money is one going out for food all the time. By the time you

• 1
• 2
• 3
• next page >>

Add your voice

Know something about How to manage on a low income?
We want to hear your view. Write now!