There are plenty of people who exist on a low income and are completely happy with their lot. Perhaps they have a job that isn’t particularly responsible, allowing them plenty of time and energy to concentrate on more interesting things – like their family or a hobby. However, some people find living on a low income makes them anxious, for a number of reasons.
You may have been used to having savings in the past, or you may simply be worried about something happening that tips you over the edge into debt. Living from pay-check to pay-check can be very worrying if you don’t have any savings to back you up. You may also be worried that you may have to borrow from friends and family in case of unavoidable over-expenditure, especially if you’ve always been able to pay your own way before.
*Fear of unemployment
Very few jobs are safe these days. You never know when your job could suddenly be cut, or you are forced to take a pay-cut. If you are already struggling, you may worry about how you would cope if that happened. You may be entitled to benefits, but it often takes time to sort these out, so you may have a period of time when you have to rely on other people or you go into debt, with no knowledge of when you will find your next job.
*Concern about the future
If you’re single, you may be particularly concerned about your future and how you are going to care for yourself, especially when you reach retirement age. You may be entitled to a state pension, but this will not be very much; yet you don’t earn enough to pay into a pension programme. Having family to rely on may help, but, if you are independent, you will still want to be able to pay your own way.
*No emergency funds
Emergencies do happen. You may go on holiday, have your wallet stolen and need to get funds transferred. You or a family member or pet may be ill and need emergency care or a period of rehabilitation. However, if you’re on a low income, the chances are that you won’t have the necessary funds available and will have to borrow. This can be very stressful, especially if you can’t see how you are going to pay the money back.
*No way of investing to make more money
You may have plenty of business ideas and want to set up your own business. You may want to buy a house so that you have something to leave your children. You may simply want to invest money in a bond or high interest account to make the most of your money. However, if you’re on a low income, you can’t do any of this. When young, you may not be at all bothered by this, but as you get older, it is likely to make you feel very anxious.
If living on a low income makes you feel anxious, then it is time to do something about it. There are always extra ways to make some money if you look for them. Don’t sit at home feeling anxious about your situation without doing something about it.