How I Saved Money When I Was Poor

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How I Saved Money When I Was Poor

Summary

  • When I was poor, I relied solely on cash to manage my spending. This was my simple way of budgeting.
  • I had a personal training client who paid me $2,000 a month in cash. I ensured this was the money I lived on.
  • All the money from my business and credit cards went directly into my bank account, and I didn't use it for daily expenses.
  • I kept only the cash payment in my wallet for living expenses. This forced me to budget carefully and live within my means.
  • I always made sure I had more cash saved in my wallet than I anticipated spending. This helped for times when payments from my client were delayed.
  • Having a buffer of extra cash was key for times when there were unexpected delays in payments. This ensured I could always afford food and necessities.

Video

How To Take Action

I would suggest starting with a cash-only budgeting method. This means covering daily expenses using just the cash you have on hand. Decide on a fixed cash amount each month and keep it physically separate for living expenses. This makes it easier to stick to a budget and avoid overspending.

A good way of doing this is by setting up separate accounts. Let any business income go straight into a bank account you don’t touch for daily needs. This creates clear boundaries between your business funds and personal spending, helping you focus on saving or reinvesting money for growth.

Always carry a little extra cash than you think you’ll need, acting as a buffer for unexpected situations. This simple habit can prevent stress due to payment delays or unexpected expenses. This buffer ensures you’re prepared for instances like delayed payments from clients, so you can still afford necessary costs like food or fuel.

To enhance your financial health without extra costs, practice regularly checking your cash flow. Consistent monitoring helps you stay aligned with your budget and adjust as necessary. It’s a quick way to identify and control overspending areas. By implementing these strategies, you can effectively manage your resources while minimizing stress and maximizing opportunities for personal or business growth.

Full Transcript

when I was poor I only spent cash so my easiest way of actually creating a budget was that I had a personal training client who paid me $2,000 a month in cash and so 100% of my money that came in through the business and credit cards and everything else went into my bank account and the only thing I knew I could live on was inside of my wallet I would always make sure that I had more than that to make it for the next payment because sometimes the guy would take a day or two you pay on Wednesday rather than a Monday or whatever and I need to make sure that I had food for chy

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