Money Management Tips for Low Income Earners

Metros continue to offer more job opportunities and attract highest salaries, compared to the low cost of living in tier 2 cities which is still open to comparison. Of course, individuals living in the metros enjoy their share of advantages, however it’s still an expensive bet. Metros have been quite high-priced whether it is India or abroad. The prevailing standard of living of cities like Delhi/NCR, Mumbai, Bangalore and Chennai are set apart & can be compared to the world class cities.

Below highlighted are the costs of living in different metros of India:

1. 1 bedroom apartment rentals range from ₹4,000 to ₹20,000 in main cities and ₹2,000 to ₹10,000 in outside areas.
2. 3-bedroom apartment rentals range from ₹10,000 to ₹30,000 in main cities and ₹7,000 to ₹20,000 in outside areas.
3. One time meal for one cost from ₹50 to ₹200 at local joints, while it costs twice the value at expensive restaurants.
4. Public transport costs from ₹350 to ₹1,200 depending on the mode of transport.

We have only marked a few relevant examples of the monthly costs however these are way above the iterated numerical. A basic budget is built after managing the costs of utilities, landline/mobile bills, groceries, clothes, daily essentials, etc.

How to manage your budget in a Metro city with limited income?

Obviously, it’s difficult to survive without a hefty income in cosmopolitan cities. Your monthly expenses will be greatly hindered without a high salary. It will be difficult to sustain and save for life financial goals and medical emergencies. So, if you receive a small income, then it’s advisable to plan your budget accordingly. Ideate on effective strategies to save along with your spending.

Highlighted below are the top money management tips for low-income earners:

1. Build a Monthly Budget on Priority– Create a monthly budget & strictly adhere to it. No matter what you earn, keep a constant track of the earning & spending.
2. Bring Down your Expense levels– Try to cut down on your high expenditure levels to accommodate unavoidable spending. Evaluate your budget regularly & eliminate frivolous expenses. Replace your current help with a less costly option.
3. Consolidate Existing Debt– If you have an old debt, which entails high-interest on credit card loans, then better consolidate them by opting for a cheaper line of credit.
4. Focus on Additional Income Streams– Watch for newer streams of earning & diversify your portfolio. Every piece of work can help to add to your current income. Whether it’s a part time or full-time work. Use the additional income to make investments of value & good returns.

How Can Home Credit Help You Manage Expenses?

Home Credit Mobile App offers an intrinsic feature of Personal Finance Manager (PFM). This allows customers to check their expenses & financial accounts on a single mobile screen. The information is essentially gathered from the transactions on the customers mobile. However, the feature is enabled exclusively for customers with 7th digit odd phone numbers only.

In case of financial needs, Home Credit Instant Loan for low earning people can be helpful to manage daily expenses in an effective manner. Our instant personal loan applied on our mobile app works as a financial support for crisis and requirements, whenever the need falls upon you due to shortage of funds.

The ‘low processing fee’, ‘fast disbursal’ attributes make instant loans quite affordable. So, essentially you can use this source of money for purchasing essentials, consolidating debts, paying utility bills & high interest credit.

Read more: Availing Instant Cash is now a Reality