How I Manage My Money on a Low Income (Budgeting + Saving)

Video Description

A step by step guide on how to get out of the paycheck to paycheck life and create a sustainable plan with your finances. Chapters 00:00 Introduction 00:59 My Income Situation 02:20 How I Organize My Money 06:24 How I Budget My Money 10:17 What I Do When I Get Paid 13:17 How I Manage My Money On A Low Income If you would like to support my channel!: https://www.buymeacoffee.com/williamsauQ Mint Mobile (save on your cell phone): https://mint-mobile.58dp.net/rn6rJQ My Favorite Personal Finance Books Your Money or Your Life: https://amzn.to/3VExSUV The Simple Path to Wealth: https://amzn.to/3RODWJp Die With Zero: https://amzn.to/4bjwQ6D Currently I am on a low income; however, despite being on a low income, I am still able to make ends meet, save, and invest my money. In this video, I want to walk you through a detailed explanation on exactly how I manage my money on a low income. 1. My Income Situation In this video, I want to be completely upfront with you on my personal financial situation. I am currently living on about $2500 a month after taxes. My income is extremely unpredictable, but over the last year I have managed to live off of an income of about $30,000 a year. Despite this, I am not living paycheck to paycheck, but I have a large amount of savings and investments in case of an emergency. 2. How I Organize My Money Organizing your money is the first step in gaining control over your personal finances. My personal plan consists of the following: (1) I put all of my money in a no fee bank account; (2) I organize my money in a checking account (which is for spending), a savings account (which is for emergencies), and an investment account (for growing my money); and (3) I put all my expenses on a credit card that I pay off at the end of the month. I find it extremely important to have your money divided in between accounts so that each dollar has a home and a purpose. 3. How I Budget My Money Regardless of your income (but especially on a low income), you need to create a budget so you are not spending more than you are making. My personal budget plan consists of the following: (1) Track all your expenses, so you know exactly where your money is going; (2) See if your spending is sustainable, which means to see if you are spending more or less than you are making; and (3) Examine all of your expenses one by one and see if they can be lowered or completely cut out. Regardless of what your financial situation is, we all have areas of our finances that can be improved. Creating a budget that is sustainable where you are spending less than you are making is extremely important. Expense Tracker: https://docs.google.com/spreadsheets/d/18BhD1pqfnlmrp_-3zxdPeWTThh9OnNMiA_DkIm5GcuI/edit?usp=sharing 4. What I Do When I Get Paid I believe in making my finances as simple as possible and so I have created a simple plan to pay all of my bills in full every month without taking on any debt or taking money from savings. I do the following when I get paid: (1) Pay myself first, which is to set aside a specific amount of money each paycheck in my savings account; (2) Pay off my credit card which I put the majority of my expenses on and make sure at the end of the month the balance is paid; and (3) pay my non credit card expenses by manually paying them or putting them on auto pay. Whenever I get paid I follow this simple financial process. 5. How I Manage My Money On A Low Income I manage my money by keeping my money organization simple, creating a sustainable budget, and keeping my finances simple. When I focus on developing a plan, I am able to make living on a low income more manageable. It is important to remember that regardless of your income, you should focus on creating a good relationship with your finances. **This video is intended for entertainment purposes only, none of it should be interpreted as financial advice. Links above are affiliate links where if you click and order, I will receive a commission at no cost to you. **