Saving money for fulfilling the future requirements is the inborn desire of all the employees working in the organization. Planning and proceeding with such financial desire are just like a child’s play for the employees having a six-figure salary. But, what will be the case for employees surviving on a lower income? Obviously, it will be comparatively difficult.

If the employee’s income is low and below the median range of amount, entire saving strategies automatically fail. Understanding and implementing the creative set of efforts yet result positively in maximum savings in such situations as well.

Let us discuss the best possible efforts and strategies to save more from a smaller salary without any further worries:-

1. Limiting the housing cost: Housing cost proves to be one of the biggest expenses for a lower or middle class family. The housing cost easily drains out the savings without any prior intimation. The employees with lower income can manage to have more money available for saving by keeping such costs low and investing with creativity. One of the most applicable golden rules to be implemented is to keep the complete housing costs below 35% of the total earned salary. In such a case, money management will have golden wings to fly with adequate financial planning for all the upcoming needs.

2. Adequate management of the entertainment costs: There must be an administrative grip over the extra entertainment costs. Employees with smaller salaries must avoid restaurant culture frequently or hitting up the bar doors after the work schedules. Moreover, purchasing expensive movie tickets for entire office colleagues on every single weekend activity must be avoided with priority.

The following list of measures needs to get implemented in this regard:-

• Enjoying the lunch and dinners at home instead of frequently visiting expensive restaurants with colleagues.
• Enjoying favorite movies at home along with popcorn and soda despite of visiting the expensive malls like PVRs.
• Scheduling outside lunch and dinner like activities only once in a month instead of doing it frequently.

3. Buying the stuff as and when necessary: It has been noticed that the savings most often suffers due to unnecessary expenditures. Employees without having a future vision to save the money expend their hard earned money without even thinking a little. Visiting the branded shopping malls and purchasing the stuffs without need creates a troublesome situation for the lower income family. It is accordingly needed to think before investing in extra stuffs to handle the financial situations creatively. Self commitment to limited purchasing is required keeping a view upon the salary and the savings account.

4. Limiting the expenses on purchasing the grocery items: Groceries have been noticed to be one of the most frequently buying stuffs for the lower as well as the medium class families. It is accordingly needed to keep track of the expenses concerned with the unnecessary buying up the grocery items.

The following list of points proves to be the most beneficial ways for saving money on the groceries:–

• Preparation of the effective menu plan every single week.
• Following the commitment to follow the prepared menu plan with dedication.
• Planning up the shopping menu keeping an eye over the discounted sales.
• Avoiding the frequent purchase of frivolous food items such as soda, chips etc.
• Avoiding such purchases even proves beneficial in health procurements.
• Avoiding buying up the costly packed food items and preferring to prepare them conveniently at home.

5. Effective utilization of zero sum budget: It refers to proper management of every single penny before getting it credited inside the salary account. Keeping an idea and accordingly moving ahead with the financial management helps the lower income employees as well to save as well as expend the planned sum of money. If the employees feel their money unutilized they may proceed towards a bank fixed deposit or investing the same under mutual funds or buying insurances with guaranteed returns. In addition, the appropriate insurances even cover the life risk acting as one of the greatest family supports.

6. Understanding the latest investment plans with banks and insurance companies: Most of lower-income employees often avoid investing their money in insurance and fixed deposits. They always consider themselves below the defined criteria of availing the unexpected profits after investing. One of the most important points needed to be kept in the mind is the tendency to save utilizing all the investment angles.

Bank FDs, Bank RDs, LIC, GIC, Mutual Funds, Gold, Properties etc are few of the best investment options. Prior to the investment, savings is essential which can be done by the appropriate planning. It is not necessary to save a huge sum of amount at a time but proceeding to save pennies from the employee’s salary automatically becomes bigger. After getting them invested, money becomes multiplied to boost up the level of confidence in all aspects.

To cap it all, it must be understood that money makes a big difference and it always matters the most. No one is going to see the employee’s salary received every single month in the salary account. The thing which will matter the most will be the lifestyle which he/she follows with that much amount of salary. In such a case, creativity and creative financial management will always matter. Employees with a bigger salary will even not be able to maintain a lifestyle like that of the employees with smaller salary.

Understanding the financial management strategies, saving the hard earned money and getting them invested accordingly grows up like a fruit tree after the defined time interval. The result will be an awesome lifestyle with stress free schedules. Such employees must develop a habit to study the creative finance blogs and money saving strategies. Moreover, they must even contact the concerned officials by visiting such places and gather the essential set of information using the voice call facilities. Ultimately, everything will be made aligned and more savings can definitely get enjoyed by the employees with smaller salary.