Budgeting tips when you’re on a low income
Source: https://www.moneyadviceservice.org.uk/en/categories/low-income-survival-tips
Getting by on a low income takes careful organisation – here are a few positive steps you can take to make it easier.
Work out your budget
First of all, you have to know what money is coming in and what’s going out – and when. Making a budget gives you a clear picture of where your money goes, and shows you where you might have a chance to save money. It will also help you see whether you are living within your means.
Look at ways to cut costs and shop smartly
It can be difficult to change the amount of money you have coming in – but you have much more control over what goes out. Your budget shows you where your money’s going, so you can see if there’s anything you can easily cut back on, or shop around for a better deal.
As a first quick and easy step, use our cut-back calculator to see how you can save by cutting out things you buy regularly that are perhaps non-essentials. This isn’t to say that you shouldn’t enjoy treats, but you might be surprised at how much small things – like a daily coffee when out – add up!
Energy saving grants if you’re on a low income
If you make your home more energy efficient you’ll be able to save money on gas and electricity. If you’re on a low income you can often get an energy efficiency grant to help with the costs.
Get holidays for less
If you want to get away, it pays to shop around. There are huge savings to be made if you do your homework. For money saving tips when booking a holiday see our guide below.
Claim all the benefits you’re entitled to
It’s easier than you might think to check that you’re getting all the benefits you’re entitled to if you’re on a low income.
Some benefits are one-off payments to help with a particular set of circumstances like cold weather, while others, like Income Support, top up your regular income. A careful check can make sure you’re getting everything you should.
Emergency borrowing to make ends meet
In some circumstances, you might be able to get an interest-free government loan to help you make ends meet at a difficult time.
Other loans
Be very careful of other kinds of borrowing. Things like payday loans, log book loans and doorstep lending can seem like an easy source of cash, but they could end up making a bad situation worse.
They’re often a very expensive way of borrowing money – so always try to find other ways to borrow if you can. Ask your family if they can help, or consider joining a credit union – they’re set up to offer banking services to people who would otherwise find them difficult to get. Follow the link below to find out more.
