Many people today want a balanced life between career and daily life. Not infrequently, began to emerge people who were willing to  resign  from their work to start a more peaceful life and avoid stress.

They usually migrate to smaller villages or cities in order to avoid the saturation of the busy city. Some are willing to become a   true freelancer so they can have time flexibility. However, all these things sometimes have to be paid with a fairly high risk: reduced income.

When you know that your salary is declining, you need to take steps to manage your finances effectively. These are tips about anything and how you reduce costs when deciding to have a lower income.


1. Avoid flowering debt


To start saving more, you must overcome your debt directly. In particular, debt with high interest rates such as credit cards or personal loans. Because, they will force you to pay the debt along with the interest, when you have money or not

When paying off debt, you need a plan so you can pay it off on time, without making you feel burdened for longer. If you already have debt, prioritize paying debt that has high interest first.

Then, when you have paid it off, as much as possible do not get entangled again with interest-bearing debt, such as a credit card. Ask your bank to reduce the credit card limit to half of your salary, so you feel able to pay it.


Also Read:  Avoid Financial Traps Wisely Manage Debt


2. Reduce your biggest costs


Trying to save when income is low can be very difficult. Sometimes, it seems impossible to reduce even three or five hundred thousand rupiahs every month.

About, like cooking food at home and unsubscribe from cable television, what else can you do to cut expenses? Instead of trying to reduce small expenses, focus on larger expenses, so you can make more significant results.

For most people, housing costs tend to be the biggest part of their expenses. If you are renting a house, consider moving to a smaller house or living with a roommate.

If you are paying home, pay attention to whether your interest costs are calculated  fixed  until the payment due date or move dynamically every year. You can also rent a room or parking space to earn extra income.


3. Take advantage of free things


Take advantage of something “free” while you can. As a low-income family, you might be eligible for a tax reduction, or cheap home loan from the government. If you have children, there is no need to hesitate to register your child as a recipient of the Indonesia Smart Card at both primary and secondary levels, up to the tertiary level.

KIP is a government program to reduce the cost burden of the underprivileged people in order to be able to pursue higher education.


4. Keep your budget


To save more, you have to control how much rupiah you spend. Select the product category you want to buy, and keep the rest of your budget as lean as possible. You really have to sacrifice until your finances return to health.


Also Read:  Consumptive Goodbye, It’s Time You Become a Frugalist


Learn to spend in moderation. Example; reduce how often you eat. You can still enjoy good food in restaurants, maybe only a few times a week.


5. Starting a side business


If you can’t cut costs anymore than you already have, consider diversifying your income by starting a side business to earn extra money. In addition to a full-time job, you can get a freelance job   as a provision for you to earn another income.


Also Read:  Effective and Simple Time Management Methods for You Who Have a Side Business


Many side jobs that you can do directly at home in your spare time. Think about what you do well, what hobbies can make money, or what you already enjoy that can be turned into a side job.

For example, your hobby is baking, try to sell it to your colleagues through WhatsApp Group. You can be an agent of a goods or service company, such as an insurance agent or cosmetic agent.

You can also become an insurance agent for Cigna Indonesia. By becoming an agent, you can offer insurance products face to face, so that customers can consult directly about what protection is most appropriate for them.


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