Financial Advice for Less Well-Off Individuals

Life is different for each and every person. People have different work lives, different families, and different situations. Some people make millions per year while others make thousands. Some individuals are able to independently support themselves which other may receive assistance from friends, relatives, or even the government. Despite the stereotypes and assumptions which are usually made regarding high-income people and low-income people, the great equalizer comes in the form of benefits of financial advice.

Granted, financial recommendations for someone who earns $100,000 annually will be different from a person who earns a yearly income of $10,000. Nevertheless, the following strategies and hints are great for less fortunate individuals.

Engage in Extremely Frugal Money Management

When funds are tight, frugality is absolutely paramount. While saving money can be difficult when funds are low, there are generally certain steps which can be taken to truly get the complete bang for one’s buck. KNS Financial has some excellent tips: first and foremost is seeking out banks which do not bill monthly fees or otherwise require customers to maintain a certain amount of funds within the account. There may also be certain banks which choose not to bill low-income customers with overdraft fees.

Another excellent way to stretch money is selling items which are in reasonable shape, yet not used very frequently. Some people do this by having yard sales, listing their items on Craigslist, or pawning them at applicable shops. Upon attaining these extra funds, putting them aside is a really proactive way of getting used to saving money.

Other simple, yet effective ways of frugally handling money include, but are not limited to, buying groceries on sale, walking (or carpooling), using utilities conservatively, and unplugging devices which are not being currently. This can truly add up and save money, especially when done habitually.

Look for Relatively Inexpensive Ways to Increase Income

While saving and being frugal with current funds is a great first step, it will only do so much for low-income people. The best thing that less fortunate people can do for themselves is increase their earnings. In 2018, there are a variety of available options, even for individuals who were recently laid off, currently in between jobs, or otherwise unemployed. The gig economy is a truly innovative and lucrative tool for people to take advantage of. Those who do not have computers or laptops in their home can go to the library and use the internet to create profiles on freelancing job boards such as Upwork, Freelancer, or Fiverr. Other options include driving for Lyft or Uber or renting out rooms on Airbnb.

A Final Word

At the end of the day, rising above poverty ultimately entails two life changes: decreasing expenses and increasing income. Ideally, doing both of these things simultaneously is the best course of action. Not only are lowered expenses and surging income a blueprint to escaping from poverty, but it also sets less fortunate people on the track to achieving wealth. Although Rome wasn’t built in a day, it did come into being with consistency and time.

The same dynamic applies to the aforementioned steps which will eventually engender the rise from financial hardship to financial prosperity.

 

By Gabrielle Seunagal

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