Do you have a small salary? This is not necessarily a problem! Obviously, like everyone else, you undoubtedly dream of earning more money… But with a good budgetary organization, your small salary will allow you to save some money. Be careful, you have to review everything and make the right decisions to live better with a small income. Today, I am giving you an action plan to optimize your salary as much as possible, weigh your decisions, reduce unnecessary purchases, and ultimately succeed in saving. We explain everything to you!
Here is the first thing you will need to do. Indeed, you must first make a list of your fixed expenses. These are the ones that allow you to live and that you cannot avoid. You will thus find for example your rent, your telephone plan, your electricity and gas costs, your home and automobile insurance, your mutual health insurance and possibly the credits to which you have subscribed. These expenses are not easy to reduce, so you will need to count them as a basis in your budget strategy. This is the very first thing you will need to do.
This is followed by what is called variable expenses. You can then list these expenses which vary from month to month but which remain necessary for your everyday life. We find, for example, food, health costs, expenses related to gasoline or public transport, birthday gifts… These costs can quickly be quantified, but are again difficult to limit. However, you will have to check what your variable expenses are for the last six months, and make a high estimate of this budget.
Next, let’s talk about impulse spending. These are the ones that you can quickly reduce. By indicating them clearly on a document, you will quickly understand that you are spending way too much money on unnecessary things ! This calculation will probably be very useful and informative. These are all the purchases that are not necessary for your daily life. For example, did you buy the brand new smartphone while your old one was still working? This is an impulsive expense that you could have done without. These impulsive expenses unfortunately infect your financial balance. If you have a low salary, it is essential to reduce these costs to save money!
Now, you have the three expense items. So you end up with three columns which are fixed expenses, variable expenses and impulsive expenses. You can add the three amounts, and compare to your monthly income. And so, you will see the difference. That is to say, you will be able to know precisely what you have left at the end of the month to save money. Unfortunately, many times you will find that you have almost nothing left! And this is where you will have to change your consumption habits. Maybe you can save some money in these three columns, and thus have a larger remaining budget at the end of the month? This budget analysis is very important because it will allow you to realize your financial capacity.
Now that you have all the cards in hand, you will be able to manage your budget. This is a very important step if you have a small salary and you are having difficulty saving every month. First of all, you must plan a monthly budget that should not be exceeded in order to save money. Say you want to save 200 euros per month, you have to withdraw these 200 euros from your salary in order to create a tailor-made budget without taking this money into account. So, at the end of the month, you can be sure that you will have at least that amount left to set aside. You should know that this process does not happen overnight, and that you have to limit your budget as you go to change your consumption habits. The first few months, you have to check your account regularly. Thus, you will be able to adjust your expenses: if you have spent more than planned, you will have to restrict yourself at the end of the month. Never forget your basic goal: to save money with a small salary!
You will understand, your small salary is not necessarily a handicap. But it requires a very strict organization of your expenses. You have to do a complete balance sheet of your budget and identify unnecessary expenses. By clearly setting yourself a savings goal, you will be able to hold on more easily and thus reduce certain impulsive expenses (these are the easiest to reduce at first) Saving money is very important to avoid being in the red when a misfortune falls on you. Managing a budget cannot be improvised with a small salary. Your turn !
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