Many families around Britain are feeling the pinch and the trend doesn’t look like subsiding anytime soon. We recently wrote an article about the possibility of people on low incomes being entitled to benefits and working tax credits. Now we will be looking at how people on low incomes can budget, plan their finances, use online loans to start a business and succeed with a sideline buisness.
Budgetting is key
As with all forms of financial planning, you first have to work out your budget by knowing what money is coming in and what is going out. This will give you a clearer picture about where your money actually goes during the week or month including paying rent/mortgage, council tax and insurance etc. By figuring out where you are spending your money, you will be able to see where you might be able to make some savings, helping you live within your means.
Unfortunately, it can be very difficult to change your incomings which means it is more likely that you can gain control over your outgoings, including shopping around for cheaper and smarter deals, not just in the supermarket but also on your household bills, travel and leisure costs. Keeping a spending diary is a great way to keep on top of your spending but also to monitor the savings you make when you shop smarter. Implementing small changes such as using comparison sites and cancelling direct debits for subscriptions you no longer need can make a big difference.
Making savings in order to live more comfortably within your means is one thing, but saving cash for something big like a holiday can be much trickier. A great way to start is by setting a savings goal, which means you will be more motivated to save as you will have an end in sight. Even if you don’t have anything specific in mind that you want to save for then it is always a good idea to have some savings in an easy access account for when an emergency arises – but always make sure you are getting a competitive rate of interest on your savings!
Let’s imagine, for the purposes of this article, that you live in a remote town that is quite a long way from the bigger cities and that you do not go to one of those cities regularly. It is fair to imagine that in such a small town, you would have troubles finding more than one, perhaps two payday loan businesses, if any. Now, imagine that you need a quick payday loan and that you do not want to get ripped off. In a small town settlement with one or two businesses offering payday loans, your choice is very limited, which means that you will most likely have to agree to an interest rate that is just too much.
For those with a less than perfect credit rating this can also pose problems. With loans bad credit it does not matter where you are from. People from London have the same choice as the people from the most remote town in the Hebrides.
It does not matter where you reside, as long as you have an internet connection and an account in a bank. Not only does this allow you to choose between more payday loan businesses, but it also allows you to simplify the process that is entirely electronic and that takes just a few minutes.
Reduce on costs to save in long-run
When times are tough and we have to start penny-pinching then the first thing we tend to sacrifice is our annual holiday, which is a shame because we all need to escape every now and then. Well, even when the finances are tight, it is still possible to reduce the cost of holidays.
Depending on your circumstances when booking a holiday, it could make sense to book early if you know exactly where you would like to go, alternatively, for the best savings you can book late and get the cheap deals. If you have the time you could plan and book your flights and accommodation separately or buy an all-inclusive package holiday with everything thrown in for the biggest savings. Whatever your circumstances, be sure to shop around both online and on the high street for the best deals – and this goes for buying your foreign currency as well as purchasing the best value travel insurance.
Everybody is feeling the pinch at the moment but it can seem particularly worrying if you earn a low income, however, there are always ways to cut costs, spend savvy and live frugally and if all else fails then there are plenty of loan options out there that can help tide you over until payday.
Need some extra cash become an entrepreneur
We’re all feeling the pinch at the minute and with stagnating wages coming up against rising living costs, perhaps now is the perfect time to start the business you always dreamed of.
If you have put dreams of owning your own business on hold because you are worried about packing in the day job in such turbulent times, then think again. Many business owners start their fledgling enterprises on the side in their spare time, often utilising finance through their personal credit cards or using an online loan to kickstart the process.
Start as a sideline business
Starting your venture as a side-line means you will need to be realistic. You won’t be a millionaire overnight, in fact, it may not even pay the bills but don’t let this put you off – you will have an opportunity to do something that you are passionate about.
If you haven’t yet had your Eureka moment then fear not, it doesn’t mean you cannot pursue your passions and hopefully earn a little more cash on the side. There are some great places to start as a part-time entrepreneur that require little cost except your time.
If you have a hidden talent or skill that the world should see then that would be a great start for a business but if not then there are plenty of alternatives. Direct selling is a scheme in which you can gain business experience by running your own micro business selling the products of a larger franchise – this model makes up the UK’s largest provider of part-time earnings.
Grow your own
Growing your own is a big hit in Britain at the minute with more and more people utilising their gardens to plant vegetables, herbs and flowers which can then be sold at local markets. Perhaps you could spot a niche which may increase your chances of selling your produce such as micro herbs which are a staple of every chef’s table and becoming increasing popular on dinner plates across Britain thanks to gourmet cookery books and TV programmes.
Come dine with me
If you are a whizz in the kitchen then perhaps you could consider a side-line dining club in which you cook up a storm for guests who pay to dine at your home. This would allow you to indulge your passions whilst meeting new people and, of course challenging your skills in the kitchen and testing your business sense.
Managing your time
Becoming a part-time entrepreneur can be extremely rewarding and there are many benefits, particularly if it is in your spare time, however, it is not without its pitfalls. The main upside is that you will still maintain a steady income from your full time job, meaning that financing your venture needn’t be done using loans or credit but means all your bills and living expenses will be covered as you venture out on your own.
You will, however, have to consider the impact that starting up on your own will have on your personal life and personal finances as you will become far more time-strapped than before and the stress levels could potentially rocket as you try to juggle two jobs and your family life.
But, if you are wanting to change your life and challenge yourself in new ways…what are you waiting for?