How To Save Money On A Low Income
For all of my young entry-level workers, recent grads or those who’ve taken a recent pay cut, this post is for you!
If you’ve been struggling to create a financial plan that works, or you just don’t know how to save money on a low income, then keep reading.
I’ve been able to save for long-term travel, pay off thousands of dollars in debt and do so much more while earning a modest income, so I decided to put together a post outlining some major advice that has allowed me to save money on a low income!
Keep in mind that just like with any goal, you’ll have to make sacrifices and maintain your dedication to get there.
I’ve had to go over a year without buying new clothes, take public transportation to work and make my own homemade lunch multiple times a week so that I could save money, so don’t think that it’ll be easy but I promise that it will be worth it!
Let’s get into it.
1. Create A Budget
Know exactly what is coming in and going out. Without a proper budget, there’s no way that you’ll be able to keep track of your spending and savings.
Even if you don’t make a lot of money, you should always create a detailed budget so that you know where your funds are going. Overall, this will make it easier to cut back in places that are necessary so that you can start saving more.
Don’t worry though! A budget doesn’t have to be boring, try to make it fun by creating your own spreadsheet, using a mobile app or even buying one from a local business!
I got tired of not having a budget tracker of my own, so I created a financial planner on Etsy for those who need a little extra support with their journey to financial freedom!
2. Have No Spend Days
This tip has saved me hundreds of dollars over the past few years!
It’s a super simple concept, choose 1–3 days a week or more if you’d like and use those as days where you spend no money.
You’d be surprised at how much money is wasted on small purchases each day. Just keep in mind that you can only spend on your essential expenses during those days.
Spending $5 a day adds up to $150 a month and $1800 a year, I’m sure your emergency fund could use that extra money!
That morning coffee, skip it, your afternoon lunch that too and your snack on the way home say goodbye to it!
3. Free Events
There’s nothing better than free events and free stuff! When your funds are limited it doesn’t mean you can’t have fun it just means you gotta get more creative.
Look up free things to do in your city and I’m sure tons of things will pop up sometimes they’ll even have free food and beverages so don’t sleep on those free events near you!
Trust me once you start enjoying free entertainment there’s no going back!
4. Cut The Subscriptions
This is a common budgeting tip that most finance bloggers will tell you, but honestly, it’s one of the best pieces of advice out there!
Online subscriptions probably make up a lot of your expenses and if that’s the case then it’s time to start cutting them back.
Anything that you could get for free online needs to go, and if you have multiple streaming sites then cut it down to 1.
If you’re comfortable with being extreme get rid of your cable, landline telephone and even your car if you can take public transportation to work.
All of these monthly expenses are taking up money that you could be putting into your savings so do yourself a favour and let them go!
5. Increase Your Income
Sometimes one income just won’t be enough when you have major financial goals so why not start a side hustle in your free time!
Earning a modest income from your day job just means that you’ll need to be creative with the ways that you earn extra money.
I personally started by selling old stuff online, teaching English and I even tried doing freelance writing at one point. Since then I’ve started a travel blog, an Etsy shop and a financial coaching business which makes me extra money every month.
I started my blog and Etsy shop on an extremely low budget so don’t worry about the initial financial investment, either way, it’ll be worth it in the long run!
You might want to check out WordPress and Godaddy to get your website started and an Instagram business account to get started on social media!
Other than that I suggest doing a quick google search of the most in-demand products and skills right now and choose something you want to develop on and start learning!
6. Stop Using Credit
Going into more debt when you’re already tight on money, don’t do that. Debt is a dream killer so if you want to start putting yourself in a better financial position let today be the last day that you use your credit card when you don’t have the money!
You’d be amazed at how much money you free up by simply not putting yourself into more debt.
7. Sell Old Things You Don’t Need
If you’re in need of some extra cash the easiest and quickest way to get your hands on it is by selling some of your old stuff.
I’ve done this multiple times to fund my travels and to help me get by when I had pennies in my bank account.
We all have some things laying around that we don’t use and don’t need, why not get some money for it and use that towards your bills, savings or debt.
8. Grocery Shop And Cook More
Food can really blow your budget if you’re not careful, what may seem like just a meal here and there can actually add up to thousands of dollars every year.
I suggest cutting back on eating out and learning how to make some of your favourite meals at home.
There are so many cheap, easy meals that you can make for a fraction of the price you’d spend eating out.
9. Automate Your Savings
If you’re low on money but have even a tiny bit of extra cash each month, automate that amount to be taken out of every paycheck.
You will automatically establish a savings account and don’t even have to do any work while it grows.
This will create a money savings habit for you and you will eventually see your savings start to grow over time.
Although it’s not easy to save money on a low income, it can be done by doing a bit of brainstorming and adopting some new habits.
I hope that this post helped you think of some realistic ways that you can save money on a low income.
Everyone’s lifestyle is different, so you might be able to use all of these tips or maybe just some, either way, pick and choose a few of the tips that work best for you and get started on your path to financial freedom!
Let me know in the comments below your best advice for how to save money on a low income and if you’ll be trying out any of these tips.
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