How to Live on the Minimum Wage

When you are trying to live on a tight budget you must know exactly what your incomings and outgoings are. Hazarding a guess at, for example, what you spend on food and travel each week could spell disaster. Sit down as a family and make a list of what is spent each week. If anything it is better to overestimate than guess a lower figure. If you have no other means of balancing your household accounts do it the old fashioned way. Buy a cheap notebook to use to detail your household bills, wages, and general spending.

• Make sure that you list everything that you may spend, even occasional items such as new shoes or a visit to the dentist.
• At the opposite side of the page list all the money that comes into your household each week. Take into account wages, benefits and additional earnings. Do not include money such as overtime, if it is not guaranteed.
• Use monthly or weekly figures, depending on how often you are paid.
• Add up both the incomings and the outgoings columns and see if these two balance. Obviously, if the outgoings are more than the money you have coming in, you could be in trouble. Hopefully, you will have more money coming in than going out.

However, whatever the outcome of working out your finances, you will at least have a clear picture to work on. Make a note of any savings that you already have, so that you know what money is available for emergencies or as a contingency fund.

If you can economise on certain goods or services you will have more money to play around with. Make sure though that you do not:-

• Economise on you and your family's diet, so that it becomes unhealthy.
• Affect your health needs.
• Remove essential items.
• Go without heat when it is needed.
• Miss payments on your home. We all need a roof over our heads. This must be your number one priority.
• You must pay taxes, such as the Council tax  in the UK. Non-payment may get you a jail term.

Look at your last shopping receipts and consider:-

• Are you shopping at the cheapest store?
• Do you waste money on lots of luxury items, that are not necessary?
• Could you buy a store's own brand for less?
• Are you buying lots of ready meals and processed foods? These are often expensive, overall, but low in nutrition.

Try to make sure that you DO NOT buy:-

• Lottery tickets.
• Alcohol.
• Small servings, as bulk buying is usually cheaper.
• Expensive dog or animal treats for your pet. With a good, basic diet these are unnecessary for your pet.
• Cigarettes. If you smoke try to give up or at least cut down. Many smokers find that it is cheaper to smoke roll-ups but it is not good for you.
• Newspapers or magazines.
• Mobile phone top ups, unless they are really necessary. Perhaps just using a landline would be cheaper, overall.

When finances improve you can purchase any of these, or maybe buy as an occasional treat, but they are not necessary as a part of daily life.

There are many ways that you can save money. Even if it is only a small amount remember that every little helps. Some of these ways to save money will have a good effect on the environment, and that is an added bonus. Try to :-

• Recycle what you can.
• Sell or trade used goods, such as books, CDs, DVDs and clothes, at car boot or garage sales.
• Look around second hand and nearly new shops for bargains. In the UK if you shop at charity shops that are in the "posh" parts of town you can pick up bargains for next to nothing that, for example, may have only been worn once.
• Avoid the sales unless there is something specific that you need. It is all too easy to buy a "bargain" that is not really a bargain if it was not needed.
• Save fuel energy at home. Turn off the lights in unoccupied rooms, turn the thermostat on central heating, air conditioning and refridgerators down just a notch. Even a small reduction will save you plenty.
• Use low voltage lamps around the home istead of bright lights, where suitable.
• Do not leave appliances such as computers and televisions in Stand-By mode. Turn them off at the plug instead.
• When you have to replace white goods, such as washing machines, buy the most eco-friendly models as they will be cheaper to run.
• Turn off microwaves, when not in use. If you do not it is an expensive way to simply have a clock in the kitchen.
• Wash your laundry at a slightly cooler temperature.
• Simiarly use faster and lower temperature cycles on your dishwaher.
• Better still wash the pots by hand.
• AVOID using the tumbledrier unless you really have to.
• Maximise the loads in your dishwasher and automatic washing machine.
• Fit energy saving light bulbs around your home. They are not as expensive, than of late, and they will help cut your fuel bills.
• Shower, rather than bathe, if at all possible.
• Save small coins in a money box or simply a clean, empty jam jar. This could prove very useful if, one particular day, money is scarce.

It is all too easy to almost blindly wander around the shops, arriving home with far more than you intended to buy. Make a shopping list before you set off and stick to it. If your usual supermarket, or shop, increases its prices look around for a more competitive deal.

Look out for buk buying bargains. As long as the use by date is well in advance stock up. Huge boxes of washing powder and dog biscuits, for example, can save you plenty of money, as opposed to buying smaller versions. Just make sure that you do not bulk buy and end up throwing some of the item away, as it has gone off. This will actually waste money. Work out what is appropriate for you and yours.

Shop around to get the best deals for your:-

• Insurances
• Internet provider
• Energy supplier.
• Mortgage provider.
• Telephone service provider.
• Bank.

Use the Internet to research the best deals around and swap accordingly.

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• As long as you are fit and well, and the area is safe, there is no reason why you cannot walk to work. In the UK just getting of a bus at a fare stage, and walking the distance of a couple of bus stops, can save you money. Walking one way, either to or from work could keep you fit and save you even more cash.
• If ithe journey will be too long to walk look at buying saver tickets for public transport. These usually work out much cheaper than buying single tickets.
• If you drive to work see if it is possible to car share with a colleague. This way you could take the driving in turns and half your costs. Always be aware of health and safety though and do not compromise these just to save a few pennies.
• Get on your Bike. Cycling can keep you fit and help you travel for little if any cost.
• Shop around for the fuel for your car, instead of just buying from the nearest petrol station. Prices vary a great deal.
• Perhaps even consider trading your car in for a cheaper model. One that will be cheaper to run and that you may get some cashback with also.

There are many sites, on the Internet, where you will be rewarded with cash back for simply clicking through the cashback site to do your shopping. Make sure though that you are not buying non-essential, frivolous items unless you can afford to.

In the UK there are certain benefits that you can claim, even though you are working. Most of these are means tested. Research your options. Either look online, check out your local library or ask at the Citizen's Advice Bureau. In the UK. there is Council tax benefit, Income tax credit, Housing benefit and more. There is no shame in claiming any of these. They were created to help those in need.

FIND OUT WHAT BENEFITS WOULD BE AVAILABLE TO YOU AND YOUR FAMILY AND CLAIM THEM.

If you are claiming any means tested benefits you must be careful about earning any extra money. However, if your circumstances allow you to earn extra money try:-

• Mystery shopping.
• Writing reviews and articles online.
• Delivering neswpapers and or leaflets.
• Selling products such as Avon cosmetics.
• Buying and, or, selling on EBay.
• Offering to shop, clean, garden. dog walk and the like for friends, neighbours and family for a fee. You could also advertise your skills in your local newsagents.
• To have the whole family on board.
• Remember to keep within the law of the land though.

Although the labour market is struggling, at the moment, you still need to be optimistic and take the long view. Start thinking about what would be a suitable career for you. If you are young you will not want to live on the minimum wage forever. Check out the possibilty of improving your long term prospects by:-

• Undertaking any appropriate training.
• Going back to college or take an appropriate course of study.
• Revamping your CV or resume.
• Being keen and enthusistic at work.
• Checking out the chances for promotion in your job.
• Taking any overtime that is offered.
• Giving you job 100%
• Once you have proved yourself indispensible ask for a pay rise. Employers must not pay less than the minimum wage, but they can pay more.

If you are unsure ask for careers advice. Who knows, there may be a perfect, well paid, career out there, that would suit you down to the ground.

• Try to secure a second job, but make sure that it is physically possible to do the work.
• Avoid credit cards, but make sure that you have ONE for emergencies.
• Make sure that this credit card costs you nothing, if at all possible.
• Try to save some money. If you do, put it into a high interest, no cost account.
• In the UK, put this money into an ISA, individual savings account, as you will pay no tax on your interest.
• If you have an overdraft, ensure that it is interest free and that you keep within the limits.
• Take care of your basics and essentials first.
• If you have no money left for extras then go without them.
• Avoid taking out any loans. In the long run they will only make matters worse.
• If the situation becomes desperate seek advice sooner, rather than later.
• Lobby your Senator or Member for Parliament about keeping the minimum wage and increasing its value.

Deep down you know all of this information makes sense.

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