She Strengthens

Finding Financial Freedom on a Limited Income

As someone who has struggled with mental health issues and lived on a tight budget, I know firsthand how daunting it can be to manage your finances. But I’ve learned that with determination and the right strategies, it’s possible to turn your financial situation around, even on a limited income.

Hitting Rock Bottom and Getting Back Up

A few years ago, I found myself in a situation where I had to rely on social assistance to get by. I had to leave my job, move back in with my family, and drop out of school due to my deteriorating mental health. It was a tough time, but it forced me to take control of my finances and figure out how to make the most of what little I had. Fast forward to today, and I’m proud to say that I’ve increased my net worth by over $6,000.

Prioritizing Debt Repayment

One of the key steps I took was to prioritize paying off my high-interest debt. I had over $3,000 in credit card debt, which was weighing heavily on my net worth. I transferred my credit card balance to a different bank to take advantage of a promotional interest rate, and then threw everything I had at paying off the debt. I also made sure to put any extra income towards debt repayment. Today, I’m over 80% done paying off my credit card balance, and it’s made a huge difference in my financial situation.

Saving for the Future

Once I had made progress on my debt repayment, I turned my attention to saving. I committed to saving a fixed amount each month, and eventually built up an emergency fund equivalent to three months of living expenses. Having that safety net in place has given me a sense of security and peace of mind. Now, I’m working towards saving up to move out of my family’s home and into my own apartment.

Creating a Budget That Works

The final piece of the puzzle was creating a budget that worked for me. I used budgeting apps and financial journaling to track my income and expenses, and to make sure I was staying on top of my financial goals. Having a clear picture of my finances has given me a sense of freedom and empowerment. I no longer feel guilty about spending money on things I enjoy, because I know exactly how they fit into my overall financial plan.

Taking Control of Your Finances

Conventional financial advice often doesn’t take into account the realities of living on a low income. But by making small changes and taking control of your finances, you can start to shift from feeling helpless to feeling empowered. Whether it’s paying off debt, saving for the future, or simply tracking your expenses, every little bit counts. With time and effort, those small changes can add up to major improvements in your financial health.