A step by step guide on how to get out of the paycheck to paycheck life and create a sustainable plan with your finances.
Chapters
00:00 Introduction
00:59 My Income Situation
02:20 How I Organize My Money
06:24 How I Budget My Money
10:17 What I Do When I Get Paid
13:17 How I Manage My Money On A Low Income
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Currently I am on a low income; however, despite being on a low income, I am still able to make ends meet, save, and invest my money. In this video, I want to walk you through a detailed explanation on exactly how I manage my money on a low income.
1. My Income Situation
In this video, I want to be completely upfront with you on my personal financial situation. I am currently living on about $2500 a month after taxes. My income is extremely unpredictable, but over the last year I have managed to live off of an income of about $30,000 a year. Despite this, I am not living paycheck to paycheck, but I have a large amount of savings and investments in case of an emergency.
2. How I Organize My Money
Organizing your money is the first step in gaining control over your personal finances. My personal plan consists of the following: (1) I put all of my money in a no fee bank account; (2) I organize my money in a checking account (which is for spending), a savings account (which is for emergencies), and an investment account (for growing my money); and (3) I put all my expenses on a credit card that I pay off at the end of the month. I find it extremely important to have your money divided in between accounts so that each dollar has a home and a purpose.
3. How I Budget My Money
Regardless of your income (but especially on a low income), you need to create a budget so you are not spending more than you are making. My personal budget plan consists of the following: (1) Track all your expenses, so you know exactly where your money is going; (2) See if your spending is sustainable, which means to see if you are spending more or less than you are making; and (3) Examine all of your expenses one by one and see if they can be lowered or completely cut out.
Regardless of what your financial situation is, we all have areas of our finances that can be improved. Creating a budget that is sustainable where you are spending less than you are making is extremely important.
Expense Tracker:
4. What I Do When I Get Paid
I believe in making my finances as simple as possible and so I have created a simple plan to pay all of my bills in full every month without taking on any debt or taking money from savings. I do the following when I get paid: (1) Pay myself first, which is to set aside a specific amount of money each paycheck in my savings account; (2) Pay off my credit card which I put the majority of my expenses on and make sure at the end of the month the balance is paid; and (3) pay my non credit card expenses by manually paying them or putting them on auto pay.
Whenever I get paid I follow this simple financial process.
5. How I Manage My Money On A Low Income
I manage my money by keeping my money organization simple, creating a sustainable budget, and keeping my finances simple. When I focus on developing a plan, I am able to make living on a low income more manageable. It is important to remember that regardless of your income, you should focus on creating a good relationship with your finances.
**This video is intended for entertainment purposes only, none of it should be interpreted as financial advice. Links above are affiliate links where if you click and order, I will receive a commission at no cost to you. **
What are some other "how to" videos you are interested in seeing?
This is really useful video. Appreciate you sharing some of your finances – transparency is getting more and more rare these days. Cheers.
If you pay your insurance by the month it is costing you sometimes up to 5% more I used to pay my insurance once a year but now I have to do it twice a year that’s the way they roll
Low income ? Work harder then
Making money is not the same as keeping it there is a reason why investments aren't well taught in schools, the examples you gave are well stationed, the market crisis gave me my first millions, people shy away from hard times, I embrace them.. well at least my advisor does lol.
This video has been very helpful. Thank you.
Great ideas. I'm trying to learn from u.
I love these videos! I hope you continue to creat content for many more years to come…
I am so impressed You explained everything so well . I have to start on investing I am almost there .
How were you able to save $60k? Any advice is appreciated
I have the same practise every month! Closely the same with you even the accounts. Great minds think alike 😏 Except im keeping cash more rather than putting it to investment. I’d probably do the same now cause am tempted to use for unnecessary things.
2500 sounds great. My income is way below that.
I just have to applaud your content man, well done. I remember having a consultation with a financial analyst last August, and it was incredibly insightful. Can’t stress enough how helpful experts in this field are!
How on Earth is your health insurance only $200/ month? I’m in California and pay 4 times that amount!
You’re doing a great job. Thanks for the video – very helpful advice.
Thank you for making this video and sharing your numbers Austin. I was crushed when my life changed and I had to live on disability in one of the most expensive cities in Canada. But as you, when you live simple, organize your expenses, manage your savings, it is possible. I still miss my life healthy and with higher income, but this is where I am and gotta make the best of it. I count every blessing and celebrate even the little steps. Keep sharing this type of videos.❤ Gracias Agustin 🙂
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Hi! The expense tracker is on « view only » is it normal? 🙁
😅
I live on 1120 a month
I can’t tolerate the panic and boredom of tracking and then not allowing myself to eat out and buy what I seem to need. Budgeting is useless for me. I will spend what I will spend in order to have mental energy and not die from boredom