While it’s true that money can’t buy real happiness, having it is the only way to buy things that can put a smile on our faces. Without it, we can’t have the things we need to survive or live comfortably, such as food, shelter, and clothing. While earning a huge amount is easier for many people, some are struggling to find a job and others are earning low to moderate income.
Low- to moderate-income earners are making ends meet but are finding it difficult to improve the quality of their lives. Their earnings are just enough to sustain their daily needs. Some are paying rent while others are struggling to get out of the debt trap. Sometimes, they manage to have a little extra for other things such as travel, simple luxury, gadgets, appliances, and recreation.
If you are one of the many low- to medium-income workers, you know how difficult it can be to manage your finances well. This guide will help you set your priorities and find ways to have a better future.
This rule is easier said than done, especially for low- to medium-income earners, but there is no harm in trying. Many people have tried adopting the “savings first” habit and it changed their lives for the better. The best practice is to save at least 10 percent of your monthly income.
Experts say that in order to be prepared for emergencies, you should have at least three months’ worth of salary in your savings account, but if you don’t have it yet, it’s never too late to get started. Start with a small amount and try to increase it over time. This will help you develop a good habit of saving for the future. It will also give you the funds for emergencies and other expenses.
Prioritize Needs Over Wants
It’s normal for us to aspire for things that will make our lives easier and more comfortable. We want this and that, but the problem is that not everyone can afford such things. If you are earning low to medium income, it’s likely that you just have enough for the things you need. For now, you should let go of the things you want and focus on things that are more important, such as food, education for your children, and a place to stay. If you get better at saving and growing your money, you can buy those “wants” in the future.
Be careful where you put your money into. Make the right investments to ensure a better future for your family. For example, you can invest in affordable stocks or start a small business using the money you saved. You should also get an insurance policy that comes with an investment facility so that you can protect your finances against critical illnesses and liquidation. It will also ensure that you will have money when you retire.
If you are currently renting a place, you may apply for a USDA loan so that you can have your own house in the future. This type of loan is specially designed for low- to medium-income home buyers. It comes with affordable rates.
Lastly, you should look for other sources of income so that you can earn and save more money. The more you save, the better your future will be. You will also have an extra amount to buy the things that will improve the quality of your life. Start doing the things mentioned above today and you will enjoy the benefits in no time.