How to Save Money When You are on a Fixed Lower Income

Getting your very own Georgia dream house can be difficult, especially if you’re surviving on fixed lower income. You even barely get to save any money. But how do you save your hard earned cash when you’re only living paycheck to paycheck?

Getting a house means that you have to make a certain amount for a down payment. Most mortgage companies in the U.S including the ones in Georgia, would ask for at least 20% down payment before they can process your loan. Since you’re only earning a minimum wage, saving for it would be challenging. But you can still try to save little by little. Here are some tips on how you can do that:

Pay off Your Debt

It may be hard, but you need to plan on how to pay off your debt. Prolonging your bills can only make matters worse. Try to tackle the ones with the highest interest first. High- interest rates from personal loans or credit card will only charge you with fees and interest charges if you don’t tackle your overdue balance. As soon as you’re about to finish paying off your debt, try to avoid getting any more high-interest debt.

Cut Down On Your Expenses

Be a bit creative to cut down a few your expenses. You can try home- cooked meals instead of eating out during your lunch break, or try to cancel your cable for a while until you save a bit of extra. Prioritize the things that you really need. If you’re still renting, try to downsize to a smaller home or ask someone to be your roommate. You can also try to rent out one of your rooms if you have an extra space or even a parking spot. These will greatly help you save more money for your initial down payment.

Consider Government Assistance Benefits

Government benefits such as EITC and 401k are some things that you may want to consider to speed up your savings for a down payment. Earned Income Tax Credit aims to provide assistance for working people who generate low to moderate income. You should meet certain requirements and file a tax return to file for EITC. EITC helps reduce the amount of tax that you owe and may even give you a refund.

According to brokers from Georgia, 401k is a retirement savings plan that is sponsored by an employer. It will help you save and invest a portion of your paycheck before the taxes are deducted. The money that you will get from your retirement plan will depend on your vesting period. Vesting is the amount of time that you must work for your employer or company before acquiring your 401k.