Budgeting is the most effective way to control your cashflow when you’re on a low income and living off of the interest you earn. If you make regular purchases that save money with your Personal bank accounts, you’ll have more money to spend on the things that matter to you.

Plan Your Spending

Remember, the more money you have, the more you can spend. Budgeting is all about the discipline of making sure your money goes where it needs to go, and it’s an investment you’ll enjoy, we just suggest to use tools like the budget app from Sofi, to make things easier.

Related: How to Create Your Budget

Step 1: Identify the Money You Want to Save

What are your goals? The first thing you need to do is decide what it is that you want to get done. If you want to save money for retirement, ask yourself if you want to save for a down payment for a house or a down payment for a car. Do you want to pay off your debt? Do you want to invest in your retirement or your children’s education? Do you want to keep going to work or retire early? If you’re unsure what you want to do, you probably shouldn’t be saving for retirement. Instead, put those funds towards a down payment or other important purchases. Next, figure out what your monthly expenses will be. You might find that you’re spending more than you made last year on rent or other utilities. That’s okay; in order to build up your nest egg, you need to take on more responsibilities. If you make more than you spend in a month, you can reinvest your savings, earning interest, or make a contribution to your 401(k). If you make less than you spend, you can sell some of your things to fund those expenses. To do both, follow these five steps:

2. Don’t pay more for the same products. If you’re shopping for a new home, don’t pay more for a brand-name unit than a smaller one. If you’re shopping for a new computer, don’t spend more for an upgrade than a basic one.

3. Buy cheaper. When you shop for something, make sure you pay for the best possible deal. Sometimes, the same product will cost more if you buy it second-hand, for example.

4. Don’t be scared of brands. A good place to start is by asking friends who already own a store how they like the brand. If you love that store’s products, you’ll probably love this one, too.