How to save money on a low income for a mortgage FREE budget spreadsheet link

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Here at WIS, we talk about all things to do with money, mortgages, and positive money mindset.

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In today’s video, we’ll be discussing how to save money on a low income. We’ll cover everything from budgeting and investing to paying off debt.

1. Budgeting

There are two main things to consider when budgeting:

• Your income
• Your outgoings

Use a spreadsheet to track your finances — we’ve created a simple one for you (link provided).

Categorize Your Expenses

• Essentials: Rent, mortgage, council tax, etc.
• Non-essentials: Eating out, cinema, etc.
• Future plans: Weddings, holidays, etc.
• Debt repayment: Credit cards, loans, etc.

Tips for Budgeting

Review your payments — cancel subscriptions you don’t use.

Work out how much you’d like to save first, then cut back on non-essentials to hit that savings goal.

Follow the 80/20 method: Spend 80% of your income, save 20%.

Remember the 10% rule: Pay the minimum repayment plus 10%. On a 25-year mortgage, this could help you repay it 3 years earlier.

2. Pay Yourself First

Most people spend first and save later.

Instead, set up an automatic transfer into your savings account on payday.

Treat savings like a bill that must be paid.

This ensures you always save, rather than relying on what’s left at the end of the month.

3. Pay Off Your Debt First

Always pay at least the minimum payment.

Add the extra 10% rule whenever possible to reduce debt faster.

If you have multiple credit cards, start by clearing the smallest balances first — this gives motivation as debts disappear.

Consider debt consolidation if your debt feels unmanageable.

4. Pay Things Off Yearly Instead of Monthly

Spreading costs monthly can feel cheaper but often includes:

• Extra fees
• Higher interest

If you can afford it, pay things like car insurance or tax annually. It can save you money in the long run.

5. Set Goals

Decide how much you want to save and write it down.

Use sticky notes with your goals and place them around your home for daily reminders.

Having a clear vision keeps you motivated.

6. Build an Emergency Fund

It’s important to have savings separate from your regular pot.

Aim for £1,000 as a starting point.

This covers unexpected expenses like car repairs, without needing to rely on credit cards.

Final Note

For financial advice, you can always contact us here at WIS.