The quickest way out of poverty: 4 smart saving and spending tips

Many personal finance surveys show that over 60% of young people in Vietnam have almost no emergency savings, while living costs are constantly increasing. Therefore, phrases like "how to escape poverty quickly" and "how to stop being poor" are becoming some of the most searched topics on Google.

The truth is that escaping financial hardship is not due to luck, but comes from changing how money is managed, controlling spending, and creating additional income streams. By understanding how money works, anyone can gradually improve their financial life.

In this article, you will discover practical principles that can be applied immediately: from adjusting spending habits, building your first savings, to increasing income and gradually achieving financial freedom. If you are looking for the quickest way to escape poverty, the simple guidelines below will help you start today.

Tip 1: Change your mindset about money

Step 1: Set clear financial goals

Define specific money goals

• To improve your finances, you first need to know what you are aiming for. This is a fundamental step in personal spending management and is also a method many experts recommend when seeking the quickest way to escape poverty.

• Ask yourself: how much money do you want to save, how long do you want to be debt-free, or what income level do you want to achieve each month?

• Write your goals down on paper or record them in a money management app to easily track progress.

• The clearer your goals, the easier it will be to implement your plan to escape financial hardship.

Divide goals into short-term and long-term

• Many people give up halfway because their goals are too big. An effective way is to break them into smaller steps.

• For example:

  1. Short-term goal: save 1–3 million VND per month.

  2. Medium-term goal: create an emergency fund for 3–6 months of living expenses.

  3. Long-term goal: increase assets or invest to improve income.

• When you achieve each small goal, you will be motivated to continue your journey of personal financial improvement.

Budget for unnecessary expenses

• One of the crucial steps to get out of financial distress is to control easily incurred expenses such as eating out, online shopping, or entertainment.

• Set a maximum spending limit each month for this category.

• For example:

  • Entertainment: 500,000 VND/month

  • Miscellaneous shopping: 700,000 VND/month

• This helps you save money for more important goals like saving and investing.

Self-discipline when exceeding budget

• If you spend more than planned one month, adjust immediately the following month.

• For example:

  1. This month you overspent by 300,000 VND.

  2. Next month, reduce your budget accordingly to compensate.

• This method helps you develop smart money management habits, avoiding uncontrolled spending cycles.

• By maintaining discipline for a few months, you will start to see your savings grow. This is an important step that helps many people find the quickest way to escape poverty and build a more stable financial foundation.

Step 2: Stop comparing yourself to others to reduce poverty

Stop comparing your finances with others

• Many people fall into financial difficulties because they try to live like their friends or those around them. This is a common reason why finding the quickest way to escape poverty becomes harder.

• When you spend to "keep up" with others, you can easily end up spending beyond your financial means.

• Instead of caring what others are buying or how they are living, focus on more important questions:

  1. What is your monthly income?

  2. How much can you spend and still save money?

  3. How can you live within your financial means?

• Good money managers always set personal goals instead of chasing others' living standards.

Don't tie your self-worth to shopping

• A common mistake in personal spending management is thinking that buying expensive things means success.

• In reality, this thinking can easily lead you to:

  • Overspend unnecessarily

  • Buy things that are not truly used long-term

  • Fall into consumer debt

• A person's worth is not in the phone, clothes, or car they own. Once you let go of this mindset, you can more easily focus on the goal of escaping financial hardship.

Reduce the influence of advertising and consumer trends

• Many media contents are designed to stimulate purchasing desires.

• Such as:

  • Fashion magazines

  • Content about new technology

  • TV shows flaunting luxurious lifestyles

• When exposed too much to these contents, you can easily feel "lacking" and want to buy more things.

• A practical way to control spending is to limit exposure to unnecessary purchasing stimuli.

Prioritize durable products over chasing brands

• When buying things, focus on quality and durability rather than just the brand name.

• Some simple principles:

  1. Choose products that last a long time.

  2. Compare quality before buying.

  3. Don't pay extra just because a brand is "hot."

• This shopping approach helps you significantly save costs in the long run and is a crucial step in your journey to improve personal finances and find the quickest way to escape poverty.

Step 3: Track daily expenses

Record all expenses incurred

• If you want to improve your finances and find the quickest way to escape poverty, you need to know exactly where your money is going.

• Record every expense, no matter how small, like a cup of coffee or parking fee.

• You can use one of these simple methods:

  1. Write in a daily spending notebook.

  2. Save shopping receipts.

  3. Track via a money management app or bank statements.

• This small habit helps you identify unnecessary expenses and spend smarter.

Categorize expenses into groups

• After recording expenses, divide them into groups for easier control. This is a common method in personal financial management.

• For example, basic spending groups:

  1. Food

  2. Housing or rent

  3. Transportation

  4. Electricity, water, internet

  5. Insurance

  6. Entertainment

  7. Clothing and shopping

• At the end of each month, sum up each group and calculate its percentage relative to your income.

• If a group accounts for too high a percentage, it's a sign you need to adjust to avoid spending beyond your financial means.

Think in terms of "work hours" before buying

• When you're about to buy something you don't really need, try converting its price into hours of labor.

• For example:

  • If you earn 60,000 VND/hour

  • An item costs 600,000 VND

  • This means you have to work 10 hours to buy it.

• This mindset helps you think more carefully before spending money and reduces impulsive purchases.

Anticipate major annual expenses

• Many people face financial difficulties because they forget to account for recurring expenses.

• For example: car insurance of 7,200,000 VND per year.

• Instead of waiting until it's due, break it down into your monthly budget:

  • 7,200,000 VND ÷ 12 months = 600,000 VND/month

• This method helps you be more proactive in your spending management plan.

Determine how much you can spend each day

• To manage money effectively, you should know how much you can spend each day.

• Follow these 3 simple steps:

  1. Take your total monthly income.

  2. Subtract fixed expenses such as housing, utilities, and transportation.

  3. Divide the remaining amount by 31 days.

• The result will give you a safe daily spending limit, helping you maintain financial discipline and get closer to your goal of escaping financial struggles.

Step 4: Debt repayment plan

Create a clear debt repayment plan

• If you are facing financial difficulties due to credit card debt, car loans, or student loans, the first thing to do is to create a specific debt repayment plan. This is a crucial step in the journey of how to get out of poverty quickly and stabilize personal finances.

• List all existing debts:

  1. Amount owed

  2. Interest rate

  3. Minimum monthly payment

• Then identify the debt with the highest interest rate to prioritize paying it off first. This helps reduce the total interest paid in the long run.

Pay extra when possible

• Even paying a small extra amount each month can significantly shorten your debt repayment period.

• For example:

  • Pay an extra 200,000–500,000 VND each month for the main debt.

  • Or make a few extra payments during the year when you have supplementary income.

• This method helps reduce interest and accelerates the process of getting out of debt.

Accept short-term spending cuts

• When focusing on rapid debt repayment, your budget may become tighter initially.

• However, this is a sensible strategy because:

  • You reduce interest costs.

  • The repayment period is shorter.

  • After you're debt-free, all your income will be yours.

• Many people significantly improve their financial lives after just a few years of disciplined spending management and planned debt repayment.

Understand the true cost of debt

• A common mistake is only paying the minimum on credit cards.

• This causes debt to drag on for many years, with a very large increase in interest.

• Check:

  1. How long it will take to pay off the debt if you only pay the minimum.

  2. The total amount of interest you will have to pay.

• Seeing the actual figures will give you stronger motivation to pay off debt quickly and escape financial pressure.

Try to renegotiate loan interest rates

• In many cases, you can ask your bank or lender to review the terms of your loan.

• Some options you can try:

  • Request a lower interest rate.

  • Extend the repayment period.

  • Consolidate multiple debts into one lower-interest loan.

• Proactive communication can significantly reduce your interest costs and make your personal financial improvement plan easier.

Step 5: Start saving money

Develop a habit of saving even small amounts

• Many people think you need a high income to save, but that's not true. A crucial step in getting out of poverty quickly is forming the habit of putting money aside before spending.

• You can start very simply:

  1. Each month, set aside a small amount like 500,000 VND or 1,000,000 VND.

  2. Transfer this amount to your personal emergency fund.

  3. Maintain this regularly every month.

• After some time, your savings will become the foundation to help you stabilize your personal finances.

Build an emergency fund

• An emergency fund helps you avoid debt when unexpected situations arise such as:

  • Illness

  • Temporary job loss

  • Car repairs or unforeseen expenses

• A common goal is to save 3-6 months' worth of living expenses.

• Having this fund will reduce financial pressure and make it easier to focus on your plan to improve income and manage money.

Save for long-term future

• Besides an emergency fund, you should also consider long-term financial plans.

• For example:

  1. Retirement fund

  2. Long-term investment fund

  3. Education fund for yourself or your family

• Early preparation helps you harness the power of long-term accumulation and increases your chances of financial freedom in the future.

Set up automatic savings

• A very effective way to manage personal spending is to set up automatic transfers for savings.

• You can:

  • Automatically transfer money from your payroll account to your savings account each month.

  • Schedule a fixed transfer immediately after payday.

• When money is transferred out first, you will automatically adjust your spending based on the remaining amount.

Don't use savings for impulsive spending

• Savings should only be used for important goals or emergencies.

• Avoid using savings for temporary needs such as:

  • Impulse shopping

  • Unnecessary upgrades to belongings

  • Exceeding planned entertainment expenses

• Maintaining discipline with your savings will gradually help you escape financial difficulties and build a solid financial foundation.

Tip 2: How to avoid spending traps and debt

Step 1: Limit lending money

Prioritize your own financial stability

• When you're facing financial difficulties, lending money to others can worsen your situation. If your goal is to find the fastest way to get out of poverty, you need to prioritize addressing your own financial obligations first.

• Make sure you have:

  1. Paid all necessary bills.

  2. A basic emergency savings fund.

  3. Not being burdened by debt or a lack of spending money.

• Only provide financial support to others when your budget genuinely has a surplus.

Avoid creating additional financial pressure

• Lending money when you are not financially stable yourself can lead to many risks:

  • Lack of monthly spending money

  • Not enough money to pay debts or bills

  • Disrupting your personal spending management plan

• In many cases, loaned money may be repaid late or not at all, disrupting your financial improvement plan.

Provide other forms of support if needed

• If you still want to help family or friends, you can choose less risky ways:

  1. Help them find suitable financial solutions.

  2. Share tips on money management and saving.

  3. Offer support with your time or advice instead of money.

• This approach allows you to provide necessary support without affecting your own goal of overcoming financial difficulties.

Step 2: Avoid high-interest quick loans

Do not rely on high-interest loans

• When in urgent need of money, many people turn to quick loans like payday loans or same-day loans. However, these are often financial traps that make finding the fastest way to escape poverty more difficult.

• These loans often have:

  1. Very high interest rates.

  2. Short repayment periods.

  3. Large penalty fees for late payments.

• Therefore, the total amount you have to pay back can be much higher than the amount originally borrowed.

Understand the risks of quick loans

• Many people initially borrow a small amount to solve a temporary problem, but then fall into a debt spiral.

• Some common risks include:

  • Debt growing rapidly due to high interest rates

  • Having to take out new loans to pay off old ones

  • Prolonged financial pressure

• This disrupts your personal spending management and financial improvement plans.

Prioritize safer financial solutions

• Instead of quick loans, you can consider less risky options:

  1. Adjust your monthly spending budget.

  2. Find temporary income sources or a part-time job.

  3. Use your emergency fund if you have one.

  4. Consult with a bank to find loan solutions with reasonable interest rates.

• These options help you resolve financial difficulties without increasing your debt burden.

Focus on building a sustainable financial foundation

• Avoiding high-interest loans is a crucial principle in personal financial management.

• By controlling spending, saving regularly, and limiting bad debt, you will gradually improve your finances and move closer to your goal of escaping financial hardship.

Step 3: Understand loan costs

Calculate all costs before borrowing

• Before borrowing money or purchasing on installment, you need to understand the total actual cost. This is an important step in personal financial management and helps avoid falling into a debt trap when looking for the fastest way to escape poverty.

• Consider the following factors in advance:

  1. Monthly payment amount.

  2. Time needed to pay off the loan.

  3. Total interest paid over the entire loan term.

• This helps you know exactly if the loan is suitable for your financial capacity.

Understand when paying interest is reasonable

• Not all loans are bad. In some cases, borrowing money can help you achieve long-term financial goals.

• A common example is a home loan.

• Many people can't afford to buy a home outright, so they need a mortgage. If:

  • The house price is reasonable

  • The monthly payment is equivalent to or less than rent

• Then a home loan can sometimes still be a good choice for a long-term financial stability plan.

Be cautious with loans for depreciating assets

• Some assets lose value over time, especially vehicles or technology equipment.

• When borrowing money to buy these assets, you might encounter situations where:

  1. The asset's value depreciates quickly over time.

  2. The remaining debt is higher than the asset's value.

• For example, after a few years of use, a car might sell for less than the amount you still owe the bank.

• This creates significant pressure on your personal financial improvement plan.

Be wary of market risks

• Not just vehicles, real estate can also depreciate if the market declines.

• In such cases, the asset's value might be lower than the remaining loan amount.

• Therefore, before borrowing money to buy a large asset, carefully consider:

  • Long-term repayment ability

  • Market fluctuations

  • Safety level of the investment

Read credit card terms carefully

• A common mistake is not reading the terms and conditions carefully when using a credit card.

• In many cases:

  • Interest rates can increase after a promotional period.

  • Penalty fees may apply for late payments.

• Therefore, always read the fine print in contracts carefully. This helps you avoid additional costs and protect your plan for managing expenses and escaping financial hardship.

Step 4: Avoid impulsive purchases

Always plan before buying

• A crucial principle in personal spending management is to only buy what has been planned. This is also a practical step that has helped many successfully apply the fastest way to escape poverty.

• Before spending money, ask yourself:

  1. Is this item truly necessary?

  2. Is it within my monthly budget?

  3. Will buying it affect my savings goals?

• When you shop with a plan, you will have better financial control and avoid wasting money.

Limit visits to places that encourage shopping

• Shopping malls, large stores, or e-commerce platforms are often designed to stimulate purchasing desires.

• If you are prone to impulsive spending, reduce your frequency of visiting these places.

• Some simple ways to control it:

  • Don't go shopping without a clear purpose

  • Limit browsing shopping apps in your free time

  • Only buy when truly necessary

• This method significantly reduces unnecessary expenses.

Always bring a shopping list

• Before going to the supermarket or shopping, prepare a list of things you need to buy.

• Simple principles:

  1. Only buy what's on the list.

  2. Avoid adding unnecessary items to your cart.

• This small habit helps you maintain discipline in your monthly spending plan.

Surround yourself with people who have saving habits

• Financial habits are often influenced by the surrounding environment.

• If you often spend time with people who spend uncontrollably, you may also be easily drawn into that spending habit.

• Conversely, when you interact with people who have habits of:

  • Saving

  • Budgeting

  • Smart money management

• You will learn many experiences that help improve your personal finances.

Wait a few days before buying an expensive item

• When you want to buy a high-value item, take some time to think before deciding.

• A popular method is the 48–72 hour waiting rule:

  1. Write down the item you want to buy.

  2. Wait a few days before deciding.

  3. If you still feel it's necessary after that time, then buy it.

• In many cases, the urge to buy will diminish, and you will avoid unnecessary expenses, thus getting closer to the goal of escaping financial hardship.

Step 5: Use credit cards wisely

Limit card use if spending is difficult to control

• Credit cards can be convenient, but if you consistently overspend, you should consider limiting their use. This is a crucial principle in personal financial management and helps many people find the fastest way out of poverty.

• When using credit cards uncontrollably, you are prone to:

  1. Spending more than your actual income.

  2. Not realizing how much you've spent.

  3. Accumulating debt and high interest rates.

• If you find yourself in this situation, a simple solution is to temporarily stop using cards and revert to direct payment methods.

Prioritize cash payments

• Paying with cash helps you better perceive the amount of money you are spending.

• When you pay directly, you'll see the money in your wallet decrease, making it easier to consider before buying.

• Conversely, when using cards, spending becomes "less tangible," leading many people to overshop easily.

• This is a practical tip to help control spending habits and personal financial management.

Choose credit cards with real benefits

• If you have good financial discipline and still want to use a credit card, choose a card that offers clear benefits.

• Some criteria to consider:

  1. No annual fees.

  2. Cashback on spending.

  3. Perks that match your usage needs.

• These benefits can help you save additional costs if used correctly.

Always pay on time

• The benefits of a credit card are only truly valuable when you pay off your debt on time.

• If you pay late, you may incur:

  • High interest rates

  • Late payment fees

  • Damage to your credit history

• Therefore, the most important rule when using a credit card is to always pay the full balance on time. This helps you leverage the convenience of the card while maintaining your plan to improve your finances and escape financial hardship.

Tip 3: Secrets to cutting daily expenses

Step 1: Cut expensive habits

Re-evaluate daily spending habits

• To improve your finances and find the fastest way out of poverty, you need to look at small but recurring daily expenses.

• Many expenses that seem insignificant can add up to a very large amount over a month or a year.

• Ask yourself:

  1. What are you spending money on every day?

  2. Which expenses are essential, and which can be reduced?

  3. Which habits are causing the biggest "leaks" in your budget?

• Once you identify expensive habits, you can easily adjust them to manage your spending more effectively.

Eliminate long-term costly habits

• Some spending habits can significantly impact personal finances over the long term.

• Common examples:

  • Smoking, which costs money and can lead to future medical expenses.

  • Uncontrolled consumer habits that persist for many years.

• Changing these habits not only saves money but also improves health and quality of life.

Reduce daily beverage costs

• A small but very common expense is buying beverages every day.

• For example:

  • Buying coffee to go every morning.

  • Frequently buying bottled water or soft drinks.

• You can save money by:

  1. Making coffee at home.

  2. Bringing a personal water bottle to use throughout the day.

  3. Finding simple recipes for beverages to replace expensive ones.

• This alone can significantly reduce monthly expenses.

Bring food from home instead of buying out

• Buying lunch every day can become a significant expense if maintained over the long term.

• A simple solution is to prepare food from home.

• You can start step-by-step:

  1. Bring lunch to work 2–3 days a week.

  2. Utilize leftovers from dinner the night before.

  3. Plan your weekly meals to save costs.

• This habit significantly reduces spending and supports personal financial management plans.

Avoid spending money on gambling

• Many people frequently buy lottery tickets or engage in other forms of gambling hoping to make quick money.

• However, this is rarely an effective way to improve finances.

• If your budget is limited, spending money on these activities can hinder your goal of escaping financial hardship.

• Instead of relying on luck, focus on saving, managing expenses, and increasing income to achieve long-term financial stability.

Step 2: Buy used items to save money

Prioritize buying good quality used items

• A practical way to reduce spending and apply the fastest way out of poverty is to consider buying used products that are still in good condition.

• Many items are only used for a short period after being purchased new, so they are still almost new.

• You can save significantly when buying:

  1. Home furnishings

  2. Household appliances

  3. Vehicles or electronics

• This way of shopping helps reduce costs while still meeting usage needs.

Find cheap clothes at thrift stores

• Thrift stores or secondhand markets often have many like-new items at a fraction of the cost of new ones.

• Many people resell clothes because:

  • No longer fit

  • Seldom used

  • Change of style

• If you choose carefully, you can buy quality clothing at a low cost, helping you manage personal finances more effectively.

Consider refurbished electronics

• In addition to used items, you can also opt for electronics that have been refurbished by the manufacturer.

• These products typically:

  1. Have undergone technical inspection.

  2. Operate as stably as new devices.

  3. Are significantly cheaper than new products.

• This is a reasonable choice for those who want to save money but still need quality devices.

Utilize old furniture for renovation

• If you enjoy being creative or doing DIY projects, old furniture can become very valuable after renovation.

• You can:

  1. Buy used tables and chairs at thrift stores or flea markets.

  2. Repaint or replace the upholstery.

  3. Repair minor details.

• With a little effort, you can transform an old item into beautiful furniture at a much lower cost than buying new.

• Utilizing pre-owned items not only helps save money but is also a smart strategy in personal financial management, helping you gradually get closer to the goal of escaping financial hardship.

Step 3: Cut monthly expenses

Review all fixed costs

• An important step to improve personal financial management and find the fastest way out of poverty is to review your regular monthly payments.

• These expenses typically include:

  1. TV or entertainment packages

  2. Internet, phone

  3. App or online platform fees

  4. Gym or club memberships

• List all these fees and calculate the total monthly cost to see how much you are spending.

Cancel services you don't actually use

• Many people still pay for services they hardly use. This is the easiest expense to cut.

• For example:

  • Premium TV packages that are rarely watched

  • Phone data plans larger than actual needs

  • Paid apps that are seldom used

• Canceling these services helps reduce costs with virtually no impact on your life.

Evaluate the effectiveness of membership fees

• Some services require annual or monthly membership fees.

• Before continuing, ask yourself:

  1. Do you use that service regularly?

  2. Are the savings greater than the membership fee?

  3. Are there cheaper alternatives?

• For example, if you join a shopping club, calculate if the total savings on purchases are truly worth the membership fee.

Find cheaper alternatives

• If a service is truly essential, you don't necessarily have to cut it completely. Instead, look for a lower-cost version.

• For example:

  • Choose a phone or internet plan that better suits your usage needs.

  • Find a cheaper gym.

  • Choose a basic service package instead of a premium one.

• This way, you can maintain essential habits while still optimizing spending and improving personal finances.

Review recurring costs every few months

• Service usage needs can change over time. Therefore, review your fixed expenses every 3–6 months.

• This helps you quickly identify unnecessary fees and adjust your budget accordingly, thereby getting closer to the goal of escaping financial hardship.

Step 4: Compare prices before buying

Always compare prices between products

• When on a limited budget, comparing prices before buying is an important habit in personal financial management and a practical step in how to quickly escape poverty.

• Before purchasing any product, especially high-value items, take the time to:

  1. Compare prices between multiple stores.

  2. Compare different brands.

  3. Check product quality and durability.

• Even saving a small amount on each purchase can significantly reduce long-term costs.

Regularly review services you are using

• If you have been using the same service for many years, the market may now offer cheaper alternatives.

• For example, you should re-compare:

  • Car insurance

  • Internet or TV packages

  • Phone services

• Regularly surveying the market helps you find better prices and optimize your monthly spending.

Leverage online shopping when beneficial

• In many cases, online shopping can be cheaper than buying directly from a physical store.

• However, you need to pay attention to:

  1. Comparing the total price after adding shipping fees.

  2. Checking the seller's reputation.

  3. Reading reviews from previous buyers.

• By shopping smart, you can save significantly on essential needs.

Use discount codes and promotional vouchers

• Many stores offer discount codes or promotional vouchers to help reduce shopping costs.

• Some places even accept discount vouchers from competitors.

• Before paying, you can:

  • Find discount codes online.

  • Check the store's promotions.

• This habit helps further reduce costs without changing your shopping needs.

Avoid traveling far just to save a small amount

• Sometimes a store has cheaper prices, but it's located very far away.

• If you have to travel a lot, the cost of gas and time might outweigh the money you save.

• Therefore, calculate the total cost before deciding to go shopping.

Be wary of "too good to be true" offers

• One common spending trap is sales on items you never intended to buy.

• Simple principle:

  1. If you didn't plan to buy it in advance, skip it.

  2. Cheap doesn't mean necessary.

• In many cases, not buying anything at all is the best way to save, helping you get closer to your goal of escaping financial hardship and building a stable personal financial foundation.

Step 5: Actively negotiate prices

Don't be afraid to ask for a better price

• A simple but rarely used method in personal spending management is to actively ask service providers for better offers. This is also a practical tip that helps many people save money and get closer to the fastest way to escape poverty.

• In many cases, businesses are willing to lower prices or offer discounted packages to retain long-term customers.

• So, don't hesitate to ask about:

  1. Current promotions

  2. Lower-priced service packages

  3. Loyalty customer benefits

Leverage loyal customer status

• If you've used a service for a long time, that can be an advantage when negotiating.

• When contacting a provider, you can:

  • Mention how long you've used the service.

  • Ask if there are any special offers for existing customers.

  • Compare with competitor prices to suggest a better rate.

• Many companies are willing to adjust prices to keep customers.

Apply to monthly recurring services

• Some common services where you can negotiate or find cheaper packages include:

  1. Internet and television.

  2. Mobile phone service.

  3. Car insurance or personal insurance.

• Even a small reduction in these service costs can lead to significant savings over the year.

No risk in asking

• It's important to remember that asking for a better price costs you nothing.

• The worst-case scenario is the provider declines, but in many cases, you can still get:

  • Direct discounts

  • More suitable service packages

  • Temporary promotions

• Therefore, actively negotiating is a small but very useful habit on your journey to improving personal finances and reducing the burden of expenses.

Step 6: Reduce spending on food and entertainment

Control entertainment spending

• Entertainment activities like dining out, visiting amusement parks, or attending events can consume a large portion of your budget if not properly managed. To apply the fastest way to escape poverty, you need to reasonably manage this spending category.

• Some simple ways to reduce costs:

  1. Limit your monthly entertainment budget.

  2. Choose lower-cost activities.

  3. Plan ahead instead of spontaneous spending.

• Controlling this spending group helps to stabilize personal finances while still maintaining an enjoyable life.

Cook at home instead of eating out frequently

• Eating out frequently is one of the expenses that can increase fastest in monthly spending plans.

• An effective solution is to learn to cook simple meals at home.

• You can:

  1. Prepare ingredients in advance and store them in the fridge.

  2. Learn a few quick recipes for busy days.

  3. Plan your meals for the entire week.

• Cooking at home significantly reduces costs and is also healthier.

Host gatherings at home

• Instead of meeting friends at restaurants or eateries, you can invite everyone to your home.

• A popular suggestion is a potluck, where everyone brings a dish.

• Benefits of this approach:

  • Reduced food costs

  • More comfortable atmosphere

  • Still allows time to socialize with friends

• This is a budget-friendly way to maintain social activities.

Find free or low-cost entertainment activities

• Many cities often have free or low-cost entertainment activities.

• For example:

  1. Free music performances.

  2. Community events or local festivals.

  3. Walking or exploring new areas in the city.

• These simple activities still provide enjoyable experiences without impacting your personal budget.

Avoid unnecessary shopping when attending events

• When attending events or traveling, many people have a habit of buying souvenirs even if they don't really need them.

• To control your spending habits, ask yourself:

  1. Is this item truly useful?

  2. Do you really need it, or are you just buying it on impulse?

• Avoiding small but unnecessary expenses helps save significantly in the long run.

Look for deals before participating in entertainment activities

• If you plan to attend an event or entertainment venue, look for deals before buying tickets.

• Some common ways to save include:

  • Buy tickets online early for discounts.

  • Look for promotions or discount codes.

  • Choose low-cost community events.

• Planning ahead allows you to still enjoy life while maintaining your goals of improving personal finances and escaping financial hardship.

Step 7: Do it yourself to save money

Utilize your ability to do household chores yourself

• An effective way to improve personal finances and apply the fastest way to escape poverty is to do simple tasks yourself instead of hiring services.

• Many daily tasks can be done entirely by yourself, for example:

  1. Washing clothes at home instead of using laundry services.

  2. Cleaning the house or tending to the garden.

  3. Handling small tasks in daily life yourself.

• By reducing service costs, you can save a significant amount each month.

Learn basic repair skills yourself

• Many people often call repairmen for small household repairs, when in reality, you can learn and do them yourself.

• Some simple tasks you can do yourself include:

  • Fixing a leaky faucet

  • Repainting walls or furniture

  • Installing or replacing small appliances at home

• DIY helps you save on repair costs and improve your personal skills.

Utilize free knowledge resources online

• Today, learning how to do a new task has become easier thanks to the internet.

• You can:

  1. Watch detailed instructional videos.

  2. Find step-by-step guides or articles.

  3. Enroll in short courses or basic skill tutorials.

• Many people now learn new skills by searching for information online.

Small habits that reduce long-term spending

• As you become accustomed to doing more things yourself in life, living expenses will significantly decrease.

• Small skills like repairing, cooking, or upcycling items can help you save money for many years.

• This is a practical strategy in personal finance management, helping you gradually improve your finances and get closer to the goal of escaping financial hardship.

Step 8: Save on home utilities

Reduce monthly energy costs

• Electricity, water, and air conditioning costs can account for a significant portion of a household budget. Optimizing these expenses is a practical step in personal finance management and helps many people effectively apply the fastest way to escape poverty.

• Some small changes in daily habits can help reduce monthly energy bills without affecting quality of life.

Maintain good insulation for your home

• Heat loss causes air conditioning or heating systems to work harder, increasing electricity costs.

• You can reduce this by:

  1. Checking and sealing gaps around windows or doors.

  2. Improving ceiling or roof insulation if possible.

  3. Checking areas prone to cold or heat escape.

• These adjustments help significantly save energy costs in the long run.

Adjust temperature appropriately

• Just changing the air conditioner or heater temperature by a few degrees can significantly reduce electricity costs.

• Some simple principles:

  • Do not set the temperature too low or too high compared to actual needs.

  • Adjust the temperature lower when no one is home.

  • Use an automatic thermostat if available.

• This helps optimize costs while ensuring comfort in daily life.

Prioritize energy-efficient appliances

• When purchasing household electrical appliances, prioritize products with low power consumption.

• Some options to help reduce electricity costs:

  1. Energy-efficient household appliances.

  2. Using LED lights instead of incandescent bulbs.

  3. Choosing products with energy-saving certifications.

• Although the initial cost may be higher, you will save significantly on electricity bills in the long run.

Turn off devices when not in use

• A simple but very effective habit is to turn off electrical devices when not in use.

• You should:

  • Turn off lights when leaving a room.

  • Unplug unused electronic devices.

  • Avoid leaving devices on standby for too long.

• These small actions help reduce electricity consumption and contribute to improving your family budget plan.

Build long-term savings habits

• By maintaining energy-saving habits, you will significantly reduce your monthly living expenses.

• The saved money can be used to:

  • Increase your emergency fund

  • Pay off debt faster

  • Invest for long-term financial goals

• This is a simple yet effective step on your journey to improving personal finances and escaping financial hardship.

Step 9: Avoid unnecessary bank fees

Choose the right bank and credit card

• A small but often overlooked expense in personal finance management is bank and credit card fees. If not careful, these fees can accumulate into a significant amount each year.

• When opening an account or applying for a card, prioritize:

  1. Banks with low or no maintenance fees.

  2. Credit cards with no annual fees.

  3. Services with transparent incidental fees.

• Making the right choice from the start helps you save money and get closer to the goal of the fastest way to escape poverty.

Only withdraw money at your bank's ATMs

• When withdrawing money at ATMs not belonging to your bank's network, many places will charge an additional transaction fee.

• To avoid unnecessary costs:

  • Prioritize withdrawing money at your bank's ATM.

  • Check the list of free ATMs within the same network.

• This small habit helps reduce incidental expenses in daily life.

Pay bills on time

• Late payment fees are one of the most common and easily avoidable fees.

• To limit this situation, you can:

  1. Set monthly payment reminders.

  2. Set up automatic bill payments.

  3. Regularly check your account to avoid missing deadlines.

• Paying on time not only helps avoid late fees but also maintains a good credit history.

Find banks with free accounts

• Many banks and financial institutions now offer accounts without maintenance fees.

• When choosing, you should look for:

  • Free checking accounts.

  • Savings accounts with no management fees.

  • Convenient digital banking services.

• Reducing these fees helps you keep more money each month and supports your goal of improving personal finances.

Monitor recurring fees

• Periodically check your account statements to identify unnecessary fees.

• If you find fees too high, you can:

  1. Switch to a different service plan.

  2. Negotiate with your bank.

  3. Switch to a bank with lower fees.

• Controlling fees well helps you optimize your budget and gradually escape financial hardship.

Step 10: Try no-spend days

Set a goal for a few no-spend days each month

• A simple but effective method in personal finance management is to create "no-spend days." This is also a habit that helps many people get closer to the fastest way to escape poverty.

• On these days, you try not to spend money on anything that is not absolutely essential.

• You can start with small goals:

  1. 2–3 no-spend days per month.

  2. Then increase to 1–2 days per week.

• This habit helps you better control small but frequent expenses.

Turn saving into a fun challenge

• Treat no-spend days as a personal challenge.

• Ask yourself questions like:

  • Can I live today without spending any more money?

  • Is there a way to use what I already have at home?

• This mindset helps you develop a saving mentality and smarter spending habits.

Utilize what you already have

• On no-spend days, try to use available resources.

• For example:

  1. Cook from food already in the fridge.

  2. Entertain at home instead of going out.

  3. Use existing items instead of buying new ones.

• This helps you realize that many needs in life can be met without spending extra money.

Turn saving into a lifestyle

• When practiced regularly, "no-spend days" will become a part of a frugal lifestyle.

• You will gradually:

  • Reduce impulsive purchases

  • Understand your true needs

  • Optimize monthly spending plans

• This is a small but effective strategy to help you gradually improve personal finances and escape financial hardship.

Tip 4: How to increase income and earn extra money

Step 1: Increase income to escape poverty

Find a better-paying job

• If you've tried saving but still face financial difficulties, the next solution is to increase your income. This is a crucial step in the fastest way to escape poverty and helps improve personal finances long-term.

• You can start with simple steps:

  1. Update your CV or job application.

  2. Look for job opportunities on recruitment sites.

  3. Network with people in the same field to expand career opportunities.

• With a higher income, you'll find it easier to save and achieve financial goals faster.

Find promotion opportunities in your current job

• Before looking for a new job, see if your current company offers growth opportunities.

• Some ways to increase income at work:

  • Take on more responsibilities or new projects.

  • Propose a promotion when you have enough experience.

  • Explore internal training programs to enhance your skills.

• Advancing within the same company often helps increase income without changing your work environment.

Proactively ask for a raise

• If you love your current job and have contributed a lot to the company, asking for a raise is perfectly reasonable.

• Before discussing with your supervisor, prepare:

  1. Specific achievements and work results.

  2. The value you bring to the company.

  3. Average salary for similar positions in the market.

• Thorough preparation will increase your chances of receiving a better salary.

Invest in learning new skills

• In many cases, low income stems from a lack of skills or expertise.

• Therefore, further learning can open up many new career opportunities.

• You might consider:

  • Earning additional professional certifications.

  • Taking vocational skills courses.

  • Improving your educational qualifications if necessary.

• Investing in knowledge and skills is one of the sustainable strategies to help improve income and escape financial hardship in the long run.

Step 2: Create additional income streams

Earn money from personal skills

• If you want to improve your finances faster, you should find additional income sources outside your main job. This is a practical strategy in the fastest way to escape poverty and helps increase personal financial stability.

• Consider your existing skills and leverage them to earn extra money, for example:

  1. Work freelance in your current specialization.

  2. Consult or support projects for individuals or small businesses.

  3. Take on short-term project-based work.

• Supplementary income can help you increase savings or pay off debt faster.

Work part-time jobs

• If your current job makes it difficult to earn extra income from your expertise, you can still find simple part-time jobs.

• Some common after-hours jobs include:

  • Mowing lawns or garden care.

  • Hourly house cleaning.

  • Walking pets or pet-sitting for neighbors.

• These jobs don't require complex skills but can still significantly boost your income.

Sell products you create yourself

• If you have a creative talent, selling handmade products can become a good source of income.

• Some popular ideas:

  1. Sell handicrafts or decorative items.

  2. Sell handmade products on online platforms.

  3. Sell at local stores or weekend markets.

• This is a way to turn personal hobbies into a real income source.

Earn money from short-term tasks

• In addition to long-term work, you can also participate in short-term money-making activities to increase your income.

• For example:

  • Participate in paid surveys.

  • Join market research groups.

  • Work as a mystery shopper to evaluate services.

• Although the income from these jobs isn't significant, if done regularly, they can still substantially support your spending management plan.

Combine saving and increasing income

• Financial improvement is most effective when you both reduce spending and increase income.

• When you have additional funds, you should prioritize:

  • Paying off debt faster

  • Increasing savings

  • Investing for long-term goals

• This combination helps you gradually escape financial hardship and build a stronger financial foundation.

Step 3: Sell unused items

Liquidate unnecessary items

• Many people don't realize that they have quite a few items in their homes that can be converted into cash. Selling unused items is a quick way to increase cash flow and support the goal of the fastest way to escape poverty.

• Check things like:

  1. Old but still working electronics.

  2. Seldom-used household appliances.

  3. Excess furniture or unnecessary decorations.

• Selling these items helps free up living space and adds money to your personal savings fund.

Organize a garage sale at home

• If you have many items you no longer use, organizing a garage sale is a simple way to quickly sell many items at once.

• You can:

  • Gather items that are still in good condition.

  • Set reasonable prices for easy sale.

  • Inform neighbors or the surrounding community.

• This is a way to turn surplus items into cash in a short amount of time.

Sell valuable items on online platforms

• For high-value or specialized items, selling online often yields better results.

• You can:

  1. Post listings on classified ad sites or e-commerce platforms.

  2. Take clear photos and provide detailed product descriptions.

  3. Compare market prices to set a reasonable price.

• This method helps reach more buyers and increases the chances of selling at a good price.

Consign clothes at a consignment store

• If you have clothes that are still nice but you no longer wear, a consignment store is a good option to consider.

• The process is usually quite simple:

  • Bring your clothes to the store for quality inspection.

  • The store sells the products on your behalf.

  • You receive a portion of the money after the item is sold.

• This method helps you earn extra money without having to find buyers yourself.

Turn surplus items into additional income

• Selling unused items quickly helps you get more money to:

  • Pay off debt

  • Increase emergency fund

  • Supplement your personal spending plan

• This is a simple but effective way to improve your finances and gradually escape the state of being short on money.

Daily money-saving tips

Accumulate loose change daily

• A simple yet effective saving method in personal financial management is to keep all loose change after shopping.

• You can:

  1. Place a savings jar at home.

  2. Put all loose change into it every day.

  3. When full, take it to the bank to deposit as savings.

• After a few months, this seemingly small amount of money can become a significant addition to your savings fund.

Prepare money for recurring bills in advance

• An effective money management tip is to pre-calculate your total annual bill costs.

• You can do this as follows:

  1. Add up the total costs of bills from the previous year.

  2. Divide that amount by 52 weeks.

  3. Round up to have a safe buffer.

• Don't forget to include quarterly or annual bills to avoid being short on money when payment is due.

Choose versatile clothes for multiple uses

• When buying clothes, prioritize items that can be used in various situations.

• For example:

  • Outfits that can be worn for work and meeting friends.

  • Basic styles that are easy to mix and match.

• This helps reduce unnecessary spending and optimizes your personal spending plan.

Utilize discount coupons when shopping

• Discount coupons or promotional codes can help you save on essential purchases.

• Before checkout, make sure to:

  1. Check for promotions.

  2. Look for online discount codes.

  3. Compare prices between stores.

• This habit helps reduce shopping costs without changing your consumption needs.

Save small amounts every day

• Improving your finances doesn't require drastic changes overnight. Instead, start with small steps.

• You can:

  • Set simple savings goals.

  • Track your progress weekly.

  • Reward yourself when you achieve goals (not by shopping).

• This approach helps maintain motivation on your journey to the fastest way to escape poverty.

Create a savings fund for special occasions

• A useful financial tip is to create a dedicated savings fund for large expenses such as holidays or vacations.

• For example:

  1. Open a separate savings account for gifts or travel.

  2. Deposit money into it each month.

  3. Deposit more than the intended spending amount.

• When it's time to spend money, you won't have to withdraw from your emergency fund or borrow money.

Maintain long-term saving habits

• Effective money management is not a short-term action but a long-term habit.

• By maintaining small principles like saving loose change, controlling bills, and spending wisely, you will gradually build a stable personal financial foundation and move closer to the goal of escaping the state of being short on money.

References

1. Man vs Debt. (n.d.). Meet Joan: Paying off debt and transforming finances. Retrieved from http://manvsdebt.com/meet-joan/
2. My University Money. (n.d.). How to avoid always being broke. Retrieved from http://myuniversitymoney.com/avoid-always-broke/
3. Shin, L. (2015). 44 ways to make more money. Forbes. Retrieved from http://www.forbes.com/sites/laurashin/2015/02/26/44-ways-to-make-more-money/
4. Money Under 30. (n.d.). Side hustle: Why not earn extra income? Retrieved from http://www.moneyunder30.com/side-hustle-why-not-11145

Content editor: Ashley Wright Nguyen.

Information consulted and verified by expert: Priya Malani.