How to Save Money Fast on a Low Income

Saving money is hard no matter how much income you have but if you don’t have a lot of money to start with it can be that much harder. However, it isn’t impossible. You can learn how to save money fast on a low income with a bit of creativity.

We spent years and years on a low income. Even now, where I would like to say we are in a comfortable spot income wise, we technically are on the lower end by our country’s standards.

So over the years I’ve had to get creative to save money. I wanted to be able to take my kids on a trip, or buy a big ticket item, or jut save money for an emergency which is so important.

In my late teens and early 20s when I didn’t really know how to manage my money or how to budget I jut figured it was a lost cause and to not even try.

But I remember watching one of my roommates vigorously pay down her student debt. She didn’t have much money-we were both just waitresses. But while I was spending anything extra I got, she was putting it towards her student loan.

It would still take me years to take pointers from that experience (what can I say, I’m a slow learner) but eventually I got better at saving money, even on a low income.

So, if I can do it I believe you can too!

How to Save Money on a Low Income

Start small

When we have an extra 10 dollars it’s easy to think it doesn’t make a difference so why put it in savings.

But every little bit helps and eventually those small amounts will snowball into a bigger amount.

The truth is that it’s going to take you longer to save money than someone who has a lot of disposable income. The best thing you can do is accept that and don’t waste another minute not saving.  It’ll still be faster than if you hadn’t saved at all, right?

Whatever you have, an extra 10 dollars, even an extra 5 dollars, put it in your savings. It will add up.

Work on paying down debt and avoid racking up more

Right now we are debt free, including our mortgage, and the benefit is that it gives us more disposable income.  While you may think you can never be debt free, I can tell you that we were in that boat 10 years ago with a mortgage, and a huge student loan.

But we worked really hard at it.  Understand that it will take awhile to pay it down, but if you work hard at it you will be able to save money more easily.

You don’t need to be mortgage free to have more disposable income.  But if you can get out of any other debt it will get you ahead.  So work at paying that debt down.  You’ll be able to save money faster with no or little debt.

Downsize your home

I know, I know.  That’s a hard one to swallow, but as one who has done it I can tell you that it can be financially freeing.  You might, like us, even consider moving to an area that has cheaper housing.  This will allow you to save money at a rapid rate.  In my opinion it’s one of the most effective ways to save money fast on a low income.

Cut back on anything that isn’t necessary

This one isn’t easy, but look at your spending habits and decide to cut out anything that isn’t a necessity.  That means shopping, eating out, hitting up the drive thru for coffee.

Look at your subscriptions to streaming services.  If you have multiple subscriptions see what ones you can cut out.  It may just be temporary, but for a while it’ll pay (literally) to pinch pennies and avoid overspending in any possible way.

Lower your grocery bill

One of the best ways to save money is on groceries.  It’s a spot in your budget that isn’t a set amount each month so it gives you some flexibility.  However, food is more expensive than it ever has been so it will require creativity to save money in this area.  But, while difficult, it isn’t impossible.  This post, 15 ways to save on groceries, can help you with some tried and true tips.

Pick up a side hustle

Sometimes there just really isn’t any extra money in your budget no matter how much you cut things out.  When you get to that point the only solution is to make more money.  Picking up a side hustle is an excellent way you can add more income to your budget.

If you find a side hustle where you are only working a few extra hours a week, you can add all of that income to your savings.  Here are 17 side hustles that can make you money.

Sell some household items

Another great way to save money is by selling some of your household items.  We often don’t declutter enough, and it might be good to look around your home and really ask yourself if you need to hang on to all the things you have.  

Why not turn it into cash instead, especially if you haven’t used a certain item for a long time that still has life left in it.

You can sell all kinds of things! Clothing, furniture, books…you name it!

Switch cell phone providers for a cheaper rate

We recently just did this.  We found out that we were paying more than we could be after researching different providers and their rates.

We also ditched the home landline phone and replaced it with a home cell phone.  We wanted an extra phone here because we have kids, but the landline was costing too much.  It turns out it was much cheaper to just add another cell phone to our home instead of keeping the landline.

Take a look at your cell phone provider and compare it with other local providers.  Could you save money if you switch?  Take that money and put it into savings.

Shop around for home and car insurance

The same thing can be said for insurance as I mentioned about cell phone providers.  Different companies offer different rates, and you want to make sure you are getting the best bang for your buck.  A few years ago we discovered we were paying almost double annually than what we would pay if we had been with another company.  We made the switch immediately.

Shop around and take the extra money you save from a lower rate and put it into your savings.

How to Save on a Low Income Budget

While it’s a little harder to save money fast on a low income, it is definitely possible and it’ll only happen if you decide to buckle down and really work at doing it.  If you are putting money away, even if it isn’t much, you are still moving forward.

Don’t compare yourself with people who have a bigger income.  Set goals and focus on where you’d like to be financially, and figure out how to get there.  It’s going to be hard, and the beginning stages are the hardest, but over time it’ll get easier as you see the progress you are making.

Learning how to survive on a low income budget just takes time.  You can live a full, happy life on a small budget.