Ditch The Daily Grind - 4 Strategies For Low-Income Earners To Build A Foundation For Wealth

Ditch The Daily Grind - 4 Strategies For Low-Income Earners To Build A Foundation For Wealth

It’s easy to get disheartened about your financial future and goals when you’re going through a difficult time. What’s important is that you don’t let these feelings consume you. It's not going to be easy but with an open mind and some good advice, you can still get your life on track for prosperity. Here are five strategies to help create a solid foundation for wealth-building:

[ photo: pexel.com by victor freitas ]

1. Don’t Turn To Credit Cards

No matter how urgent the emergency, getting a credit card should never be your first choice. Too often, this decision ends up being the beginning of a vicious debt cycle for people in need of help. If you haven’t got sufficient savings in your emergency fund and cannot borrow from a relative or friend whom you trust, look into no-interest loans for low-income earners instead.

2. Earn More, Spend Less

Remember to follow this rule, even when you’re back to stability. Increasing your earnings while remaining a low-spender is key to maintaining your net worth while you focus on wealth creation. Despite what one may think, earning more is usually the easier part. A side gig or second job is the more common way people boost their income. If you have a technical skill or an area of expertise you can help or educate others in, selling your services is another option.

It can be challenging figuring out where you can spend less when you’re earning a low income to begin with. In some rare cases, it might not be entirely possible. To begin, take note of the bare minimum spending you need to maintain a healthy lifestyle and reduce costs spent on anything extra like entertainment subscription services, alcohol or gym memberships.

3. Don’t Dispose: Repair, Recycle or Sell

It’s always wise to be mindful of your possessions and their value. So many people take their belongings for granted in their pursuit of what’s new and improved. If a piece of clothing, shoes, vehicle or technology that you own has suffered a bit of damage, don’t dismiss getting them repaired. 

A lot of the time it will cost a fraction of the price of replacement. When you are trading up to a new item, there’s no harm in listing your old belongings on your local classifieds, online bidding sites or at a garage sale for some extra cash and free pick up.

4. Negotiate Your Bills

The benefit of using service providers in competitive markets like utilities, telecommunications, insurance, and even banking, is that you, the consumer has the upper hand when it comes to negotiating a better deal. There are a few ways you can go about this without any need for aggression or threats to take your business elsewhere.

Simply make a note of any alternative services that are cheaper than yours and let your provider know that you’d prefer to stay with them if they can beat or match the price. Don’t be afraid to throw in the ‘loyal customer of x years’ card and you’ll find that a lot of the time, they will!

Getting out of financial difficulty is not as simple as reading a list and keeping a positive attitude. To see results, you need to put the above points in action and always keep your end goals in mind to drive you. You’ve got this!