When it comes to pay packets and earnings, fingers are not equal. Now, everybody I know would like to have a managerial position in a thriving blue chip organization. You know what I mean; a fat salary, stock options, paid vacations and a 401k retirement plan the whole works. Unfortunately, wishes are not horses and, as a result not everybody can have the job he or she desires.

So, if you earn a low income, how do you manage? Remember that you have bills to pay obligations to meet and even standards to uphold all on that low income.

Well, in my opinion, the magic is simply this.

Be realistic
Recognize the fact that your income is low form the very outset. This means that you can now plan your budget on that low income. There is no point expecting the moon on your income you will only get disappointed.

Shop right
Fortunately for you, you don't have to shop in the same place that the well paid guys do. So, use your head and shop at bargain stores. Buy good second hand clothes (secretly) and even used electronics as well. The fact is, if you don't tell people yours goods are second hand, they will never know. And you still get to keep your dignity!

Pay cash
This is not a paradox,it is a fact. For the guy that's short of cash, nothing is as cheap as paying cash.

How? Very simple if you make payments by check, you lose some money to bank charges. You pay with a credit card and you lose more money. But, believe it or not, cash transactions actually cost you less!

Avoid Credit
You earn a low income so you are tempted to borrow money or buy things on credit right? My advice is; don't do it. Borrowed money is usually repaid with interest and goods bought on hire purchase usually cost more so avoid these like the plague.

Don't eat out
You may think money spent on meals and snacks are inconsequential. But try adding up how much you've blown on restaurants and fast food joints over a six month period and you'll be shocked at how much it amounts to. The wise thing to do is to cook your own food. It is much cheaper and more to the point, you are guaranteed nourishing food prepared under hygienic conditions.

Have options on basic necessities
We live in a modern world. As a result, things like electricity, Internet access, central heating and mobile phones have become basic necessities. However, the good thing is that they don't all charge the same prices for their services. So, do your home work and choose the one that's likely to cost you the least.

Finally, live within your means and avoid cash advance or pay day loans. You can definitely manage on a low income if you apply these tips judiciously.

So, as you can see, it's not magic; Just old-fashioned common sense.

Learn more about this author, Emmanuel Osondu.
Click here to send author comments or questions.

---

Add your voice

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