How can low-income families save money?
Saving money is often key to getting onto a more solid financial footing, but for millions of people and families across the country, this isn't always an easy prospect. Many are just scraping by with low-paying jobs and plenty of bills to pay, and the idea of putting any money aside for a rainy day may seem impossible.
However, there are a number of strategies people with minimal incomes can utilize as a means of potentially saving a significant sum over the course of the year, according to a report from TIME. The first step is a relatively simple one: Stop spending money on frivolous items. Consumers of any income level who take a close look at what they spend may find to their amazement that they've spent way more than they probably thought on impulse purchases or things they don't need. By shopping a little smarter and thriftier, they may be able to free up hundreds of dollars a year.
Easier said than done
It might also be wise at this time to start thinking about automatically saving money from a given paycheck. For instance, if a person gets $400 per week, they might be wise to simply put 10 percent of that amount aside. Saving $40 out of $400 still leaves many families with a relatively healthy income, and may not seem like a lot, but simultaneously will start to make savings look impressive in a relatively short period of time. After just six months of setting aside $40 every week, a family would have more than $1,000 in savings.
Of course, for many families this might not be an option, simply because of how big their monthly bills are. Between rent, utilities, and food alone, most families will burn through $400 a week relatively quickly, and in these cases it might be wise to investigate other ways to save on these necessary expenses. That could include taking the time to search for coupons, trying to find more affordable coverage providers for cable or cell phone service, and so on.
The more consumers can do to make sure they're saving money, the better off they're going to be when it comes to paying the bills every month. That, in turn, can be a positive for their alternative credit scores, including those from PRBC; these ratings are now being used with greater frequency to judge risk when it comes to people who have limited credit histories.