How to Budget Money on a Low Income: 4 Tips

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A healthy relationship with your finances reduces stress and keeps you financially secure. Unfortunately, getting your finances in order is easier said than done since it takes a lot of planning and adopting good financial habits. Plus, it can be more challenging to master how to budget money on a low income.

In line with that goal, this blog will share tips for developing a better relationship with your finances so you’ll know how to make your money last.

Ways to Budget Your Money on a Low Income

1. Build a Healthy Relationship with Your Finances

This step entails understanding your financial situation, setting financial goals, and creating a budget.

As a general rule, you must be aware of how much you spend. This is where budgeting becomes a must. A budget allows you to keep track of your cash flow, identify your top financial stressors, and have a complete picture of your financial status. With these insights, you can make lifestyle adjustments and create goals to improve your financial standing.
Part of your goals may include developing a savings plan to help you fund emergencies or unexpected expenses like house or vehicle repairs. An emergency fund keeps you from having to take out loans or dip into your set budget unless it’s necessary.

Close up of Asian woman's hand putting a coin in a glass jar labeled "SAVINGS" and a pile of coins on a brown wooden table
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2. Stretch Your Budget on a Low Income

A low income requires you to be more proactive and creative in managing your finances. Here are some things to try.

Look for part-time work

Nowadays, you can explore more money-making opportunities, requiring only an internet connection and a standard computer or laptop.

For one, you could apply online as a virtual assistant, data entry staff, etc. Besides letting you earn additional income, online jobs offer great flexibility, allowing you to work remotely and choose your schedule.

Monetize your hobbies

If you like creating or designing, you can invest minimally in supplies and sell your work for a profit. As a graphic designer or crafts maker, you could set your price and earn money for your artwork when people pay you a commission. Alternatively, you could join the influx of entrepreneurs setting up a delivery-only food business if you love cooking. 

3. Look Into Government Assistance Programs

If you have a low income, government assistance programs can help tide you over during a financial crisis and make ends meet for your family. Here are some of the financial assistance programs you can apply to.

Pantawid Pamilyang Pilipino Program

Also known as 4Ps, this social protection program grants financial assistance to eligible households, helping struggling families with expenses related to health and education.


The Kapit-Bisig Laban sa Kahirapan-Comprehensive and Integrated Delivery of Social Services program let community members work on local capacity-building projects. The program’s ultimate goal is to address the most urgent social service needs of poor, marginalized, or geographically isolated communities.

Sustainable Livelihood Program (SLP)

This program from the Department of Social Welfare and Development (DSWD) provides earning opportunities for microentrepreneurs and unemployed individuals. Beneficiaries of this program may also be eligible for small business capital. 

SSS Loans

The Social Security System grants qualified members short-term loans suitable for immediate financial needs.

Checking credit score on a smart phone. The credit score reads, "752".
Image by Song_about_summer from Shutterstock

4. Exercise Credit Management

Excellent credit management boosts your ability to get loans with low interest rates and better terms. Here are a few tips to improve your credit status.

Keep your credit utilization rate low

In simple terms, the credit utilization rate measures how much of your revolving credit you use. It’s essential to keep this percentage low, preferably 30% or less, as anything higher can signify a tendency to borrow more than you can afford.

Pay on time 

Debt and late payments can negatively affect your credit score. As such, you need to pay your bills on time, whether for a collateral loan or a 2nd hand car financing, to build credit faster and easier.

Be Financially Savvy

Finances are a crucial part of life, one you must closely monitor to ensure you stick to your budget, build your savings, and maximize your money-earning opportunities. 

If you need to secure an online loan in the Philippines, consider AsiaLink Finance. The Philippines’ premier online financing company, AsiaLink Finance provides quality financing and loan products to help Filipinos improve their financial standing. Contact us today!

Gab Doromal