How are you supposed to save income when you have a lower salary? I got you...
Many want to invest or get started with the stock market but they have no idea how they are going to save money to get started.
I am going to break down how to save money even if you make minimum wage.
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Needs verses wants on "low income"
Having a low income means you have to become resourceful and look at what's really important in your life.
What you absolutely need:
1. Food
2. Shelter
3. Transportation
If you want to save and get ahead, you have to be able to sacrifice in these areas so that you have the minimum.
For example...
1. Food
Yes, we all need to eat. But where are we eating at? Is it at the best restaurants? Is it eating out every day?
Are you budgeting for groceries and sticking to it?
2. Shelter
Can you reduce your house size into something that's still comfortable and safe but perhaps lower rent for awhile?
3. Transportation
Maybe you need a car, but are you using the absolute best vehicle to show off to your friends? Or did you get something with a lower payment or even better, pay in cash?
You have the ability to compress what you want down to what you need.
There are other things you can do, too such as:
Analyzing your current bills, even reevaluating your TV/internet provider, your cell phone provider.
Even looking at your car insurance and seeing a different plan. If you save $50/month, you can save about $500 in 10 months.
Remember: This is all temporary.
You only have to sacrifice your "wants" until you are able to save enough.
What if you make minimum wage?
At the time of this post in Michigan, minimum wage is $9.25 per hour.
The state has said that is the value worth of certain jobs. This does not define your value at all as a person.
But here is what I want you to do...
Instead of wishing it were higher, look internally and ask:
What value can I offer that is higher?
How can you use your skills that we all have in a capacity that is offered a higher wage and people are willing to pay for?
There are different skill sets that demand a higher premium.
What skill do you already have or that you can learn that you can see how you can bring in a higher income?
And then meanwhile, do the same analyzation as above and cut the fat off your bills and save the rest.
Even $50-$100 a month is something significant.
How can you add leverage in your life?
When you work, you trade time for hours.
That's not a bad thing, but you can ask yourself, how can I create leverage in my life?
For me, that's the stock market.
It's something that can work alongside you to work while you are at work.
If my money is in the stock market making money for me while I go to work for 8 hours, then that's actually 16 hours of work.
That's just one avenue to creating supplementary income.
You could also create a side hustle or business and have people work for you.
To sum up...
1. Look at your bills and your needs, and see how you can trim some of the wants and put the rest into savings
2. Start to look at your skills and see what else you can learn to bring in higher income
3. See areas where you can build passive income
I know this is easier said than done but take one step at a time. It may not be comfortable at first but it will be temporary.
If you need more help defining your financial goals, get my Beginners Basics course which we are offering for $297 FREE for a limited time: