Amid the rising cost of living, it is difficult for low-income families to make ends meet. According to a recent report, such families are worse off than they were 10 years ago. While you are to ensure financial security for your kids’ future, you are even struggling to cover the cost of your meals. According to a report by BBC, a part-time nurse cannot afford enough food for her three children and herself, so she skips meals sometimes.
This deplorable scenario is the experience of many, and going to bed hungry is now the new normal for them. It is still not clear when the prices will go down. Households with two working members suspect that they would have to find another way – probably a second job – to make ends meet.
Budgeting could be a solution, but as long as overspending is the cause for being unable to keep your head above water. If you have already cut back on your discretionary expenses and are still struggling to have sufficient money to meet your day-to-day expenses, you will have to find a way out.
How Bill and Lena survived their finances
Here is a case of Bill and Lena, a low-income working family, who shared their experience of how they managed to find some room to make ends meet.
Bill and Lena are a married couple who are blessed with two children: a 9-years-old son and a 7-years-old daughter. Bill works full-time on minimum wage while Lena does not.
| Monthly income | Amount (£) | Monthly expenses | Amount (£) |
| Wage | 1,009 | Rent | 925 |
| Taxcredits | 691 | Council tax | 96 |
| Child benefits | 146 | Electricity | 243 |
| Housing benefits | 415 | Food | 385 |
| Council tax support | 36 | Loan repayments | 182 |
| Travel | 110 | ||
| TV/phone/broadband | 76 | ||
| Total | 2,297 | 2,017 |
Because children are under the age of 10, they can share a bedroom. As a result, the couple was losing 14% of their rent, amounting to £130. Compared to the cost of living, benefits should have risen by 2.2% but were capped at 1%, meaning the reduction in real income by £10.
What options did they think of?
It was difficult for the couple to make ends meet, and then they decided to consider the following options to keep the wolf from the door.
· Lena looked for work.
Lena decided to get some work because it was hard for them to live off just one income source. A full-time job was also an option, but she managed to find work for 16-hour a week. Not only did it allow more cash to come in, but it also increased childcare benefits.
· Considered renting out an extra room
Occupancy charges could have been avoided if the couple had rented out the extra room. They decided to do the same thing. It allowed them to have some extra cash coming in, which could minimise the loss as under occupancy charge to some extent.
What do low-income families do to make ends meet?
You cannot sit on your hands thinking that only the government has to grapple with the issue of soaring prices. Here are some of the ways how low-income families can make ends meet.
· Find more work
It is hard to get by with only one income source. If it is difficult for you to get a job because of rearing kids, you should think of getting freelance work. You can also do a part-time job if possible. Try looking for some jobs that provide an option of working from home.
Since both partners will be working, more cash will be coming in, meaning more room in your budget. You will likely stop living hand to mouth with an additional income source.
· Manage debt
Debt is one of the causes that put a lot of burden on your pocket. You should carefully plan around your debt, so it does not push you back any further. Try to get rid of them as soon as possible so you can concentrate on budgeting.
Debt payments kill your money, due to which you are left with very little to live off. It keeps you taking out loans, and eventually, you end up with a debt spiral. Be careful with your spending. You may have to live off a lean budget at this crucial time.
If any emergency crops up, you can think of taking out a cash loan in 1 hour in Ireland. Instant funding will help you tide over during financial emergencies.
· Do not stop budgeting
Even though you are an expert at money management, you should still make a budget every month. You can fail to lose track of your expenses, resulting in mismanagement. Prepare a monthly budget and adjust it according to your needs and goals.
It is good if you can make a manual budget, but there are also some budgeting tools. Just link them to your account, and you will get all information in one place. When you have all information in one place, you will have a clear idea of how much you have spent and how much you are left with.
To wrap up
Amid the skyrocketing prices, it isn’t easy to make ends meet. The government has its own constraints for not being able to bring the prices down, but it does not mean that you will bury your head in the sand. Now you will have to take care of your budget.
Make sure that you have enough wiggle room, so you do not run out of money to make ends meet. Now is the high time you whittled down your expenses. Stick to your new budget and ensure it works in your favour.
Apart from it, you should grab more work. Even a part-time job will be sufficient. It will be good not to have debt. If you have outstanding dues, try to lower them. Use a budgeting app to be in better control of your money.
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