How To Save Money Fast on Low Income

how to budget and save money on a low income — Tips on how to save money on a low income.

Learning how to save money fast on a low income can feel impossible at times. But I’m here to tell you that not only is it possible, but you can instill these saving methods and hold onto them to change the way you view money for years to come. Learn how to save money in 2024.

No one likes going broke. Money is a facilitator.

Because of this. Many people try as much as possible not to use all of their income. And be left with nothing at the end of the month. And save to achieve various goals that they have identified.

However, for some people, saving may feel like a challenge. This could be because your income is too low.

How To Save Money Fast On A Low Income In 2024

1. Automate Savings Payments

This is one of my favorite tips for how to save money fast for those on a low income.

How it works is that every time you receive pay via direct deposit, a portion can automatically be transferred to a savings or investment account.

Transfer as little or as much as you’d like – even saving $20 a paycheck can really add up over time.

And since it’s money that never really touches your checking account, it’s money you’ll never know you missed.

If you choose to do it manually, you are less likely to remember or follow through on your plan to transfer money.

how to save money with little income — how to save money when your salary is low

2. Budget – How To Save Money Fast On A Low Income

When you don’t have much money, budgeting might sound like more trouble than it’s worth, but it can help you to build your savings.

It’s a key part of how to save money fast on a low income. And this is simply because having a budget opens your eyes to where your money is going and helps you form a financial plan.

You can’t know how much money you have to save until you know how much you’re spending!

Begin to track your spending to understand exactly where your money is going.

Once you have budgeted enough to cover your must-have expenses. A good rule of thumb is to budget 20% of your income to go towards savings.

Budgeting is my bread and butter. When it comes to being smarter with your money, budgeting is where everyone should start. Learn how to budget and save money in 2024.

3. Live a Healthy Lifestyle

You can save a lot by just living a healthy lifestyle. Wondering how?

Medical conditions and illnesses can be draining financially. And to make it worse, you cannot predict when these issues may arise.

You cannot tell if you will be diagnosed with high blood pressure tomorrow, can you? Not to mention the treatment that comes at a cost you must incur to feel better.

4. Lower Car Expenses – How To Save Money Fast in 2024

Owning a car is expensive. Right! You spend thousands of dollars a year on:

Gas.
Insurance,
Car payments,
Registration fees,
Unexpected repairs and
Routine maintenance.

So, first be sure if you can afford a car before you start shopping for one. Then if you buy one, go for a more convenient insurance and car pay-off plan.

You will save hundreds of dollars by doing a little market research on loans, dealerships, insurance, and more. It’s also often more economical to buy used rather than new.

how to save money on a very low income — How to save money on a low salary

5. Meal Prep / Spend Less On Food

Food expenses have the potential to eat up all your income – no pun intended. It is too easy to overspend when a few nights out with friends can easily set you back hundreds of dollars in food and drinks.

Instead, plan your meals ahead and cook for yourself. It may be unpopular advice, but cutting out alcohol will also save you a ton of money.

Eating out is one of the biggest money suckers. And no, I’m not talking about your morning latte. It’s eating lunch out every day and ordering food via delivery apps that become money-sucking.

6. Go To The Library

The library can be a great source of free entertainment when you want to know how to save money fast on a low income. But it offers so much more that it deserves its own mention.

Of course, you can check out books, movies, and CDs. But most libraries offer other things, too.

For example, there might be community events, free local attraction passes, seeds for your garden, and more. Talk to your local librarian to see what is available at your library.

The library is my favorite frugal resource! If you aren’t sure where to find your library, then find it on Overdrive.

Once you get your own library card, you’ll be able to borrow books online via the Libby or Overdrive apps that are connected directly to your local library.

7. Cash Envelope System – How To Save Money Fast Today

Sometimes, good old cash works the best.

Using cash helps control impulse spending (and online spending) as you can physically see your cash diminishing. Rather than using credit or debit cards, you use cash to pay for everything.

The envelope system works by designating cash into different categories such as groceries and entertainment.

You only get what’s in that cash envelope for that category, and once you’re out, that’s it! This really forces you to stay within your budget by keeping it tangible.

Check out Dave Ramsey’s Envelope System Explained

8. Ask For A Raise – How Much Should You Save a Month

It seems so obvious, but people forget to go straight to their source of income for improvement.

If you don’t think you’re getting paid your worth, it’s time to ask for a raise. A performance review is a great time to bring this up and make sure you come prepared.

Research salaries and prove why you’re worth the investment. Be willing to negotiate.

And if they don’t budge, it may be time to start that job search again! But if you do get that raise, be careful of lifestyle creep. Keep the 20% savings rule in mind.

9. Save Spare Change

Start counting your pennies! You’d be surprised how a little bit of change can turn into some serious bills. If you use cash frequently (like the cash envelopes listed above), start collecting your spare change in a jar at your house.

Rather than lug it around in your purse, empty it out, and it will slowly collect into a good chunk of change.

When you have enough. Take it to a coin counter and use the cash you get back to put directly into savings or spend it on something you’ve been saving up for.

10. Get A Side Hustle – How Much of Paycheck To Save

If you have a savings goal in mind, earning extra income on the side can help earn income fast.

Whether that is crafting at home, picking up an online gig, or working part-time at a local store, find something that works best for you and your lifestyle.

You don’t want it to drain you in addition to your current job.

Make this income specifically for savings. Have the money deposited directly into a savings account, so it’s out of sight and out of mind!

11. Cut Entertainment Expenses

Sorry, but that Netflix subscription is not an essential expense.

If you’re big on leisure and entertainment activities, it’s time to cut back and use free and low-cost ways to have fun.

For instance, visit your local library, go for a walk or hike, or have a movie or game night at home. This is one of the best way on how to save money for teens.

12. Change Your Credit Card

By selecting the right credit card, you can either earn points or cash back.

Different credit cards will offer different rewards. You can get points for things such as travel, discounts to your go-to stores, and a percentage back of the money you spend.

Know which of these options works best for your savings goal. Be it extra money to spend, keeping your budget down, or saving for a special item.

Note, always pay back your credit card balance in full every month. This method of earning extra cash only works when you aren’t paying any of it back in interest. Switch From a Credit Card to a Debit Card to Save More Money

13. Lower Your Housing Costs – How To Start Saving Money

One of the largest expenses that take up a huge chunk of cash on people’s budgets has to be housing. Ideally, your housing should not go beyond 30% of your income.

So if you earn Ksh30,000, you should not pay more than Ksh10,000 for your rent. If you live in a house that costs more than 30% of your income, you should consider moving to a cheaper place.

If you live solo, there is no need to live in a two-bedroomed house for Ksh15,000 when a one-bedroom or a Studio apartment is going for Ksh10,000.

That is a whole Ksh5000 bob saved. It would be best not to live paycheck to paycheck trying to live Porsche.

14. Negotiate Your Utility Bills

Did you know that you can actually negotiate your bills?

Twice a year, get on the phone with your:

Gas,
Cable,
Phone,
Internet,
Insurance and
Electricity provider.

Ask if you can get a better rate, and chances are, they can give one to you. Especially if they sense that you’re looking to go to a competitor!

You can also bundle certain things together, like your internet and cable, to earn savings. By one call, you’re making some serious savings every month without evening having to adjust your lifestyle.

The worst they can say is “no,” and they likely won’t even do that. How to negotiate utility bills to save money

15. Evaluate Your Transportation Costs

Cars use up money like no other.

Between

Car payments,
Repairs,
Maintenance, and
Gas, they cost a lot to upkeep.

Consider if having a car in your life is necessary or not. If possible, try to trim down your trips and use public transport whenever possible.

Rideshare apps like Uber or Lyft will also add up over time. Just think, a $10 trip once a week adds up to $40 a month! You can also re-evaluate your car insurance and see if there are better ways to save by switching to a new service provider.

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16. Cut Down Expenses – How To Save Money

If you are a low-income earner looking to save, you might want to look back at your expenditure. You can feel swamped with so many expenses, but some may be unnecessary.

How important to you is your high-quality Wi-Fi subscription than your goal to make a down payment for that piece of land? Once you begin budgeting and tracking your expenses, the areas you can do without, if necessary, become quite evident.

Do you really need that subscription box? Are delivery fees eating up your food budget when you could pick it up yourself? Think of cutting back expenses as a way to get you to your savings goal rather than a setback.

17. DIY What You Can – How To Save Money Fast On A Low Income

You will always have things to replace or repair, and these repairs can be a burden when you’re living on a low income. It won’t be affordable for you to immediately replace everything that breaks or needs fixing.

So, learning how to DIY those repairs and replacements can save you a lot of money because you won’t have to pay for someone to do that for you.

Just go to YouTube or a dedicated website and learn to do it on your own.

18. Try Couponing

Clipping coupons is truly an art form.

You can coupon the old-fashioned way by bringing them into the store with you or loading them on your card (such as Air Miles). Alternatively, you can use cashback deals with apps like Rakuten or Ibotta.

Since many of us are shopping online these days, the modern version of couponing is applying promo codes at checkout. Before purchasing, search for any promo codes online or use an automatic Chrome extension such as Honey.

19. Look Out for Deals and Discounts

With the current challenging economic times, everyone is trying to use the least possible money to survive. To do this, people are going for good quality products but at the lowest cost.

Start looking for good deals and discounts around you and you are sure to find some exciting deals.

Go to a supermarket, walk around check out what you need that has a discount on them. Leave, go to a different supermarket and do the same.

Best Ways On How to Save Money Fast On A Low Income In 2024

Use these money-saving tips to generate ideas about the best ways to save money in your day-to-day life.

20. Pay Yourself First

Set up an auto debit from your checking account to your savings account each payday. Whether it’s $50 every two weeks or $500, don’t cheat yourself out of a healthy long-term savings plan.

21. Set Savings Goals

One of the best ways to save money is by visualizing what you are saving for. If you need motivation, set saving targets along with a timeline to make it easier to save.

Want to buy a house in three years with a 20 percent down payment?

Now you have a target and know what you will need to save each month to achieve your goal. Use banrate savings calculators to make your goal!

22. Eliminate Your Debt

If you’re trying to save money through budgeting but still carrying a large debt burden, start with the debt. Not convinced?

Add up how much you spend servicing your debt each month, and you’ll quickly see. Once you’re free from paying interest on your debt, that money can easily be put into savings.

A personal line of credit is just one option for consolidating debt so you can better pay it off.

23. Spend to Save – How To Save Money On A Low Income

Let’s face it, utility costs seldom go down over time, so take charge now and weatherize your home.

Call your utility company and ask for an energy audit or find a certified contractor who can give you a whole-home energy efficiency review.

This will range from easy improvements like sealing windows and doors all the way to installing new insulation, siding or ENERGY STAR high-efficiency appliances and products.

You could save thousands in utility costs over time.

24. Take a “Staycation”

Though the term may be trendy, the thought behind it is solid:

Instead of dropping several thousand on airline tickets overseas, look in your own backyard for fun vacations close to home. If you can’t drive the distance, look for cheap flights in your region.

25. Utility Savings

Lowering the thermostat on your water heater by 10°F can save you between 3-5 percent in energy costs.

And installing an on-demand or tankless water heater can deliver up to 30 percent savings compared with a standard storage tank water heater.

26. Annualize Your Spending – How To Save Money Fast On A Low Income

Do you pay $20 a week for snacks at the vending machine at your office?

That’s $1,000 you’re removing from your budget for soda and snacks each year. Suddenly, that habit adds up to a substantial sum.

27. Stop Smoking

No, it’s certainly not easy to quit, but if you smoke a pack and a half every day, that amounts to nearly $3,000 a year you can realize in savings if you quit.

According to the Centers for Disease Control, the percentage of Americans who smoke cigarettes is now below 20 percent for the first time since at least the mid-1960s — join the club!

28. Create an Interest-Bearing Account

For most of us, keeping your savings separate from your checking account helps reduce the tendency to borrow from savings from time to time.

If your goals are more long-term, consider products with higher yield rates like a Regions CD or Regions Money Market account for even better savings.

29. Pack Your Lunch

An obvious money-saving tip is finding everyday savings.

If buying lunch at work costs $7, but bringing lunch from home costs only $2, then over the course of a year. You can create a $1250 emergency fund or make a significant contribution to a college plan or retirement fund.

Conclusion On How To Save Money On a Low Income

When it comes to how to save money on a low income it can be discouraging. But don’t allow it to stop you from the future you want.

Take a minute and be honest with yourself about your current finances and your financial goals. Find the motivation to move forward with saving money.

Start by tackling one tip at a time on your own terms. Consider taking the first step today. Once you do that, find additional ways to save money on a low income as you make progress.

Finally, we have additional resources for families with a low income, and plenty of free financial courses you can use to improve your money situation.