Hacks To Help You Save Money While On a Low Income

It may not be easy to do, but saving some serious cash while on a low income is still possible with a few steps and adjustments made to the budget. This becomes more important when one considers how 25 million households in the United States actually live paycheck to paycheck – and saving becomes least priority.

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Have a shopping plan every time

Don’t enter the mall or grocery store without a clear idea of what you’re going to buy – this will make you more vulnerable to overspending or shelling out cash for unnecessary items. Have a written budget every month, which will help you allocate your limited resources while avoiding impulse buying.

Get used items!

Look at thrift store or classifieds for when you need a new car, electronics, or furniture, and you’ll actually be surprised at the wide range of good-quality second-hand items to choose from. Go for killer deals that will satisfy your need while helping you save some cash.

Keep high housing costs at bay

Typically a family’s biggest expense, housing costs, can drain your budget quite quickly. If renting, find cheaper housing, or talk to your landlord about trading work on the property for some rent deduction. For homeowners, cut down on utility costs as much as possible, rent out a room or space in the property, and maintain the house to keep it in great condition and avoid expensive repairs.

Go for a zero-sum budget

This means structuring your budget in a way that each dollar is already allocated before you even get your paycheck. Any money left after expenses best goes to savings, such as a retirement fund.

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Performance Settlement helps its clients consolidate and manage their debts through debt payments in amounts much less than originally owed. Learn more about its services on this page.

Young And In Debt: Millennial Money Mistakes That Lead To Financial Mess

Millennials’ financial lives are complicated. On average, the generation carries about $35,000 in debt due to their student loans. Living financially healthy is a struggle, and many millennials just give up altogether. Here are money mistakes that lead millennials to debt and how they can avoid them.

Skipping a budget: Creating a budget (and sticking to it) is vital if young professionals want to have a healthy financial state. Budgeting helps ensure that money is spent on the things that matter most (e.g., utility bills, loan payments).

Giving into trends: If a young adult is having major “FOMO” (fear of missing out), they tend to spend money on things they could not actually afford like expensive gadgets, designer fashion pieces, and luxurious travels. However, this habit can hurt their finances. Delayed gratification can help young adults save money for their future needs.

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No specific goals: Many millennials do not know what they want for themselves, so they aim their hard-earned money aimlessly on things that they do not need in the long run. The solution? Have a set of long-term financial goals. When they plan out what they want, they will tend to plan their spending as well.

Relying on a single source of income: With the financial crisis getting worse each year, having a single source of income will not do the trick if millennials want to live comfortably. Investing in stocks, having a side job, or enrolling for a time savings account can help these young professionals earn more without having to do more.

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Performance Settlement provides trustworthy debt resolution services to clients. To learn more about its services, visit this website.

Practical ways to pay off your student loans

The idea of paying back student loans continues to cause much stress among graduates, with payment plans often dragging on for years. But you don’t have to enslaved by repayments, provided you follow the practical steps outlined below. 

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One thing to keep in mind is that it’s perfectly fine to have less money now and pay off these loans sooner. Given your career choices and the decision to, say, start a family down the line, you’d probably have more headaches from arising new expenses in the future if you delay payments. 

One pragmatic tip is to set up auto-pay for your loans. This goes a long way toward repaying faster and lowering your interest rates by about .25 percent. If your bank account gets deducted a set amount by default monthly, you’ll start to have the mindset that it’s a mandatory expense instead of money you can still spend. 

Another scheme you can plan is to make two payments monthly. This doesn’t necessarily mean making double payments but dividing the total in two, based on your 15th and 30th salary periods. This would make less dent in your regular earnings, and you’d notice the deductions less. 

You can likewise opt to run a small business on the side or commit to doing a little overtime work at your current day job. Just make sure that you’re keen on using the extra income solely for student loan repayment. Doing this early on after schooling is ideal before other quality-of-life expenses come up and become necessary. 

Lastly, opt to carpool to work instead. The amount you save on gas monthly can then be funneled to debt repayment. Fuel expenses will get cut in half, just like deciding on using your car alternatingly throughout the work week. 

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Performance Settlement offers a tailored, trustworthy debt resolution service that helps clients consolidate and pay off debts for much less than amounts originally owed. Visit this blogfor similar reads.

Debt Stress: A Real Issue

Debt can be felt in more ways than financial. For a lot of people, debt introduces problems like stress and anxiety. And suffering from such conditions can affect other people like children, friends, and relatives. Debt stress is a real wellness issue and here are some ways to manage it.

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Debt stress can manifest in many ways such as restlessness, sleep deprivation, depression, and anxiety. In some cases, this resulted in serious health conditions such as migraines, heart diseases, and a weakening of the immune system. 

All these factors can affect one’s work and ultimately, their ability to pay off these debts. So be wary of these signs. If not taken seriously, debt stress can bring forth further complications such as fear of paying bills, acting in denial of one’s situation, or downright getting mad at life or other people. 

Regardless if it’s a stack of credit card or medical bills, debt problems should not be handled alone. Talking to other people like family and friends can help reduce tension. Opening up with the topic in mind may prove difficult, but being open to financial and emotional situations can clear things up. They may even help come up with solutions that can help. 

When in debt, always try to stay positive regardless if the situation was an error in judgment or due to unforeseen circumstances. Tracking your progress is a sure way of motivating yourself into feeling better about your predicament. 

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Performance Settlement assists its clients in consolidating their debts and paying them off for less than what they originally owe through third-party trusts accounts. For more on Performance Settlement and its services, click here.

How To Save Money Even When On a Low Income

The goal for many folks is to build wealth and save enough money for certain life goals, such as traveling, buying that dream home or car, or achieving a comfortable retirement.   But how are these possible when one is barely surviving financially?  CNN notes that 25 million households in the United States are living paycheck to paycheck, and money could be tight.  Here are ways to still save money and reach financial targets on a low income.

Cut down on major expenses

Go beyond cutting back on small expenses.  Focus on the bigger ones for a more pronounced impact on one’s budget.  Housing costs, for instance, can be dramatically slashed by downsizing to a smaller home or living with roommates or friends.  This can have a greater effect than, say, the usual tricks such as cooking meals at home.

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Get and stay out of debt

Get a good picture of your current financial situation by listing down existing debt and their respective amounts, terms, and monthly payments.  Make more than the minimum payments, as paying debt longer means delaying financial freedom due to ongoing interest.  Be prudent in using credit cards.

Keep entertainment low-cost yet still fun

Having fun does not mean spending a fortune.  Host potluck dinners at home instead of eating out.  Hold movie nights at home and take advantage of free activities such as hiking or free city concerts.  Use coupons or discounted deals for monthly outings and dates.

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Buy only what’s necessary

Don’t upgrade your smartphone or gadgets when not absolutely necessary.  Forego a shiny new purchase if it merely speaks to one’s temporary wants.

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Tips On Managing Your Debts

Mismanagement of debt can lead to long, sleepless nights and great financial and emotional stress. Not to mention they keep you farther from financial freedom.  Here are tips on better handling your finances and existing debts.

The first advice is to prioritize your payments.  Focus on keeping current on secured debt like auto loans and mortgages.  Give high priority to debts related to necessities such as utilities and those you can't just let go of, including student loans and unpaid federal taxes.  The next priority will be unsecured credit-card debt.  

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Second, budget and negotiate.  For example, don’t underestimate the power of speaking with your credit card company to request for a lower interest rate.  Do not wait until you fall behind on payments; you'll get more yes answers and cooperation if you're still current with payments.

Another tip is to consolidate your obligations.  This could be done by putting multiple credit card and loan bills into one loan with a single monthly payment.  One way is to combine student loans, as consolidating them allows for a weighted average of all interest rates.  Another is to transfer debt to a lower-rate card, as some credit cards offer a zero-percent interest rate on balance transfers for a limited time.

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Finally, hire a credit counselor.  Doing things on your own can sometimes get too nerve-wracking.  A counselor will have a debt-management plan in mind and will negotiate on and in your behalf with most creditors to lower rates and eliminate late fees and other penalties.    

Performance Settlement helps clients consolidate and pay off their debts through strategies and solutions tailored to their needs, including the establishment of a third-party trust account. For similar reads, visit this blog.