Save Money on a Small Income | St. Johns Bank
Trying to save money on a small income can feel like a cycle that never ends.
You intend to put money aside at the beginning of the month, something comes up and because you don’t have the money in an emergency fund beforehand, you end up using any spare money towards everything other than your savings account. Sound familiar?
It can feel frustrating trying to save on a small income. Although it is a challenge, here are a few tips from our St. Johns Bank team to help you put money away when it feels like you barely have any wiggle room in your budget.
Pay Off Debt First
This almost sounds counterproductive because the point is to put money aside, not spend more of it, right? The reality is that, if you carry debt, you are continually paying more and more in interest as time goes on.
The average Gen X-er carried $140,643 in debt in 2020. While debt comes from a variety of things, there is a good chance that if you have debt, you are paying interest on it.
If possible, put any extra funds toward debt payoff. This will save you money in the long run on interest, and will eliminate any monthly payment you currently have. Then, you can put that money toward savings!
Find Frugal Alternatives
Cooking at home is a great money-saving alternative to buying takeout. Fortunately, there are many other ways to save a few dollars here and there that can add up over time.
Have you checked out your local library recently? If you are an avid reader or have children, you may be purchasing books, CDs or other materials that can be found, for free, at your library! Many libraries even have apps where you can “borrow” audiobooks, free of cost.
Speaking of children, it can be challenging to find fun activities that don’t break the bank. There are a bunch of free local attractions right here in St. Louis that can provide entertainment for the whole family!
When you’re living on a small income, putting money into savings can feel impossible. With some small lifestyle changes that allow you to spend less of your paycheck, you can then put that money toward an emergency fund!
Do you have a savings account? Contact us to open one up and begin your savings journey today!