How to Save Money on a Fixed Income
A major component of living well on a fixed income is sticking to a prudent budget and practicing good money-saving strategies. With that said, some St. Louis residents may be in the dark on the best ways to budget and save money. In this guide, the finance professionals from Green Light Auto Credit shed some light on how to save money on a fixed income. Some of the strategies we’ll cover include:
- Cutting unnecessary spending
- Lowering your monthly entertainment costs
- Managing/eliminating debt
- Lowering your food bill
- Paying with cash more often
Get the details on these tips and more with us, below.
7 Best Ways to Budget and Save Money With a Fixed Income
- Cutting Unnecessary Spending: At the end of a rough day, splurging on a new appliance or piece of clothing you’ve been eyeing for a while is sometimes all it takes to make you feel better. We’re all tempted by these purchases from time-to-time, but when you’re trying to save money while on a tight budget, they should be regarded with careful consideration. A helpful strategy is to set a limit that your savings must reach before you allow yourself to make any purchases that fall into the “want” category.
- Lowering Monthly Entertainment Costs: Between going out for food with friends, trips to the movies, monthly streaming subscriptions, and more, monthly entertainment costs pile up quickly. Consider having at-home potlucks or partaking in free activities like day hikes with your friends, and limit your monthly subscription services to just one. Additionally, while no one likes to sit through advertisement breaks, most streaming services offer a lower-cost subscription when you allow them.
- Manage and Eliminate Debt: Florissant locals are sometimes astounded by the monthly interest they carry with credit card debt. High-interest debt can eat up your savings rapidly, so a top priority should be paying it down as fast as you’re able to.
- Lowering Your Monthly Food Bill: Limiting the money you spend on eating out each month is a key factor in lowering your food bill, but rethinking your approach to grocery shopping can help, too. Try planning out a weekly meal menu based on coupons you find for local stores, avoid unplanned purchases like candy or ice cream, and steer clear of end caps, which are often stocked with those unplanned purchases.
- Paying With Cash More Often: When you do treat yourself to a mall outing or dinner with friends, try paying with cash. This will help you stick to a set budget and make you more aware of how much you’re spending.
- Lowering Big Expenses: Are there savings opportunities within your larger expenses? Perhaps you could refinance your auto loan, or maybe you’re driving an SUV that could be traded in for a more cost-effective sedan. If you’re newly retired, could you seek out a less expensive place to live? Common scenarios such as no longer needing to live near a city for work or your kids moving out could present a great opportunity to downsize or move to a cheaper area.
- Zero-Sum Budgeting: Setting a zero-sum budget means that every dollar of your fixed income has a designated place to go before you receive your check. Any leftover funds should be put on an automated deposit into a savings account. With a zero-sum budget, it’s easier to avoid unnecessary spending.
Learn More With Green Light Auto Credit
Whether you’re looking for the best ways to budget and save money or you’re researching auto loan solutions for SSI or SSDI, Green Light Auto Credit can help! We’re a trusted resource for Herculaneum drivers, providing financing for all types of credit. Fill out our contact form online to start a conversation today!
