How to Save Money If You Are on Low Income

If you want to save money and are on a low income, it might be a big challenge. But do not let the “low income” hinder you from achieving your saving goals. Do not feel like you have to put these goals like home down payment and retirement on hold.

Fortunately, there are some inventive ways of saving money if you are a low-income earner. Though you will have to be very creative, it is entirely possible to save funds when you are not earning huge amounts as you would like. Think of creating a challenge to raise your savings with a thrifty technique to your budget that does act as an obstacle to the fun parts of life.

If you are a low-income earner, it will need completely focused efforts to save funds. Though it will not always be easy as you may want, it can be worth it. Take action on the following tips:

1. Keep your housing costs to the minimum

Housing expenses can be one of your demanding costs. Imagine if you lower your housing costs by just a few dollars every month. That amount of money would make a great difference in the magnitude of your savings and general life quality.

Here are a few tactics to lower your housing expenses:

Rent out rooms:

For instance, if you have extra rooms in your home, you can rent them out in order to offset your housing expenses. Opt for short-term or long-term rentals via a platform like Airbnb.

New location:

This is a prominent detail in the real estate costs. Can you save money by moving to a new location? For instance, migrating from downtown to suburbs can be relatively cost-effective in some parts.


Consider moving to a small home or apartment as a way to cut down costs.

2. Start using a budget and stick to it

Budgeting may sound more problematic than its worth; it can still help you increase your savings. Unless you plan for your funds, it can be relatively easy to spend them. You can add your savings goals to your budget. Rather than aimlessly saving leftovers each month, you can attain saving goals via wary budgeting. Always stick to your budget.

3. Build an emergency fund

Building an emergency fund is vital for everybody but mainly for those who earn a low income. For instance, it is expensive to be poor in the US, and an emergency fund is the biggest barrier between you and the tragedy.

4. Pay your debt completely

Debt can stand out between you and your saving goals. The constant struggle on your budget cannot leave any room for savings at the end month. Prioritize on tackling your debts. It needs a serious commitment to eliminating your debts, but it can result in an easier lifestyle. You will be able to save the money that you were previously using for debt repayment.

5. Cancel your cable and GYM membership

You do not need a cable anymore since there are plenty of streaming services available, where most are far cheaper. It can be difficult for you if you are a sports fan, but you have to do it because all you need now is to improve your savings. In the case of GYM membership, you can cancel it and opt for workouts at home.

6. Use the cash envelope method

If you always struggle in keeping track of your spending, then consider using the cash envelope technique. Using a cash envelope is a great option that could help you discover the amount of money you are spending. It may open your eyes to your destructive expenses.

After you get a better understanding of what you love spending funds on, then work towards adjusting those habits.

7 Build a zero-sum budget

A zero-sum budget simply means that you plan your budget in a manner that each dollar has a defined destination even before you receive your paycheck. If there is any cash left over after you cater for the expenses, term it into a savings vehicle like an emergency fund or a retirement fund. By having planned for each dollar before it gets into your bank account, you can avoid wasting your funds in unplanned spending.

8. Transfer money to a savings account automatically

Automating savings is the best way towards saving more funds, regardless of how low your income is. By having a specified amount of money come out of your payslip and to a non-retirement or retirement savings account even before you see it, you will easily get used to surviving on less and begin saving money with the fewer dollars to no struggle on your part.

Saving funds- even as a low-income earner- is relatively possible. With just a little inventiveness and readiness to sacrifice purchases that are valueless to you, you can start to save much more each week.

9. Find a side hustle job

If you cannot cut down expenses any more than you already have, then opt for diversifying your earnings by getting a side hustle job in order to earn extra funds. Besides your full-time work, you can get a side hustle job to give additional income sources.

10. Stop the lease or rent to own products

Avoid paying for things you can just get for free. For instance, water is something that you should pay for. You can get a reusable jerry can and fill it up when you are home, or even see a water fountain. Additionally, avoid lunch while at work, pack up food leftovers, and carry them to work. Seriously you will be surprised at the savings. Even if you do not like cooking, find a slow cooker.

11. Save all your tax refund money

Put all your tax refund funds in your savings account. That is seriously a great step towards increasing your savings. It works magically!
Saving money as a low-income earner can be difficult, but do not allow it to hinder you from attaining your income target. Take some moment with yourself about your current financial status and your financial objectives. Get the inspiration to get on with saving funds for your future.

Sam Michael writes about saving money, how to budget, frugal living tips, possible ways to make money and how to start a successful blog.

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