It might not always seem possible to save money when you don’t make much money. Frugal living YouTuber Austin Williams recently shared a video documenting his top 10 frugal hacks that help everyday Americans do more than just survive on a low income.
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Keep reading to find out which frugal hacks are worth implementing to save money.
1. Act Like You’re on a Low Income
This is a tough mindset to embrace, especially if your co-workers or friends don’t act like they’re on a low income.
However they may behave, Williams recommends exercising caution with every dollar you spend and to avoid spending money carelessly. Otherwise, you’ll wind up spending what little money you’ve earned before you even receive it.
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2. Stop Overvaluing Your Time
It’s a hard truth to digest, but Williams said your time is ultimately not worth that much when you don’t make much money. As a result, it doesn’t make sense to spend your money on things or services that help you save time.
Williams uses the example of spending $20 on Uber Eats. This might help you save 30 minutes on meal prep and transportation time, but a person who earns $10 an hour would need to work two hours to make this money back again.
“When you’re on a low income it’s often cheaper to do things yourself instead of paying someone else to do it because the amount that they’re charging is often worth more than how much you’re making,” said Williams. “Until your time is worth more, do everything yourself.”
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3. Find the Cheaper Alternatives
There’s a cheaper alternative for just about everything in life, from taking public transportation instead of buying a new car to shopping for generic brands over name brands at the grocery store.
Some of these alternatives aren’t always readily visible, so Williams recommends doing the legwork to research and find them on your own.
4. Shop at ‘No-Frill’ Places
Typically, shopping at aesthetically pleasing places means paying expensive prices. Williams recommends those searching for the best deals shop at “no-frill” places where the focus is on low prices. Think Walmart, Goodwill and Great Clips.
What a no-frills place lacks in a memorable experience, like fancy shelving or nice lighting, it makes up for in passing the savings off to customers.
5. Skip the Small Things
Being on a low income means skipping the little treats that start to gradually add up, like daily coffees or snacks at the gas station, because every dollar takes more of your time to earn.
Williams uses the example that someone who makes $100 a day, and then purchases a coffee and doughnut at the gas station for $7, a vending machine snack for $3 and a lottery ticket for $5, has already spent 15% of the day’s earnings.
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6. Drive a Crummy Car
In his low-income days, Williams said he drove a 1999 Dodge Intrepid and a 1986 Toyota Camry. These were both such unreliable cars that Williams could only drive them throughout his town as going any further wasn’t possible.
As bad as these cars were, Williams said they were at least paid off. If you get yourself a cheap car, Williams recommends pairing it with an AAA membership for $70 a year to cover emergencies. Cheap cars help drivers avoid car payments and save up enough money to eventually purchase a more reliable car.
7. Know the Lay of the Land
Williams uses the example of paying for parking when you decide where to go, which is typical of most major cities and an added expense for a low-income earner. However, knowing the lay of the land allows you to better understand where free street parking is located so you can save money.
This is also applicable for figuring out where the discount stores are and the cheapest grocery stores and gas stations.
8. Just Say No
Simply put, just say no if you can’t afford to engage in an activity or buy something that’s out of your budget. As Williams said, every no means saying yes to your financial future.
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9. Master the BYO Lifestyle
You’ll never generate any wealth at all if you spend more than you earn. To set yourself up for a lifetime of prosperity, it’s important to create a strict budget and stick to it.
Make sure that in addition to all of your unavoidable expenses, you’ve got a significant line item for saving and investments. Every month that you can come in under budget, you’re adding to your pool of lifetime wealth.
10. Live With a Scarcity Mindset
Those that act like they have a lot of money will wind up wasting what little money they do have and struggle to make ends meet.
Until you’ve built a solid financial foundation, Williams said you need to act like resources are limited because as of the moment they are. “If you act as if resources are limited and are conscious of your spending, you will eventually get to a point where you can live with a responsible abundant mindset.”
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Source
- Austin Williams, 10 Easy Ways To Save Money on a Low Income
This article originally appeared on GOBankingRates.com: 10 Frugal Hacks To Save Money on a Low Income, According To Austin Williams
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