Why Saving Can Be Hard For Low-Income Families
The best way to be Self-Sufficient is to have money set aside for those unexpected events that happen in life. Having a savings account is very important and is a vital tool in being Self-Sufficient. However, for most Low-Income Families and individuals who are just trying to make ends meet. Putting money aside for savings is almost next to impossible. So how does a Low-Income family build a savings account? It is a simple solution. You pay yourself first, and then everything else comes after.
When it comes to money, you have to be selfish to a point. To be able to take care of oneself means making some hard choices. I will be the first to admit, it’s hard to put money into savings when there is a gas bill to be paid, or a cable bill, or an electric bill, or even a medical bill that needs to be paid.
The best way to figure out how much you can put into savings each pay period, is to figure out how much your take home pay is, and then figure out the average amount for all your bills for each month.
This task will do two things. It will highlight where you might be able to cut back, and you will get a better overall picture of your financial standing. Once you have all of that figured out take 10% of your take home pay and see how that will affect your ability to get all the bills paid on time. If it has a negative effect, then cut back to 5%, which should be a safe amount to put into savings.
Now if you are able to set up an automatic transfer each payday then do it. It will make putting that money into savings easier, and more than likely you won’t even miss the money that is put into savings. One other thing you might want to do, is have a very strict rule of not touching your savings unless it is for an emergency, or if you have reached your goal amount for whatever item you have been saving up for. Although it is always a good idea just to keep that money right where it is
Being Self-Sufficient isn’t easy. However, I find that when it is hard to do. It is that much more worth doing. There is a serious issue for low-income families and individuals having the ability to save money for emergencies and other things. Because they are so focused on paying the bills and making it from paycheck to paycheck. They don’t think about anything beyond the next paycheck. It’s a flaw that they have no control over because they live in a system that goes out of it’s way to keep the poor where they are, and to help the rich become even richer.