How to Tackle Your Finance When You Don't Make More than $45K

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Table of Contents

Starting even Before You are Ready

Inspiration usually comes during work, rather than before it.
Madeleine L’Engle

A Weekly dose of financial content worth indulging. How to save and invest more on a low income. Wealth is Possible.

Intentionally Rich even with $45k worth of Finances

In 2019, a little more than 53 percent of Americans had an annual household income that was less than $75,000.

The bulk of the jobs earning around $45,000 or less is segregated to the service industry with Retail accounting for 80 percent.

It’s safe to say that a majority of financial literacy information is centered around people making over $80,000. This means that financial experts need to do more to reach the common household.

Can the average person making $45k eventually become a millionaire? That answer is yes, however, it will not be easy. You have to start with a plan and you have to decide how you go about executing said plan.

Budget Ratio Calculator and Financial Guard Rails

Using the Net Max Budget ratio calculator available on the resource page of this website, you can mimic what the rich do. The goal of the calculator is to provide guard rails. Think of this like the extra wheels as you learn how to ride the financial bike. Key things to remember:

No more than 25% of your after-tax should be listed under Housing Costs,
No more than 8% on your transportation, and
Finally, DIIP – Decrease Expenses, Increase Income, Invest as Much as possible, and Pay down Debts.