How to Save Money Fast on a Low Income

Originally written on January 02, 2020

13 Ways on How to Save Money Fast on a Low Income

Don’t know how to save money with your current income?

Are you doing a terrible job at managing your finances and want to learn how to save money quickly on an a low income?

If you’re over 30, employed and haven’t established a proper savings then this post is for you.

You’ll discover 13 ways how to save money fast in order to achieve financial freedom.

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Even if you are considered as mid to low income and think that you can’t afford to save.

I’m here to tell you that its possible to save money even with an average monthly salary!

*This post does not provide financial advice, but rather tips on how to save money. Should you require financial advice please seek a professional.

Related: How To Save Money For A Rainy Day

Now let’s get down to business on how to save money in a short time period!

How to Save Money Fast on a Low Income in 13 Ways

1. Budget

I know how intimidating it feels to have to create a budget, when you’re barely making ends meet.

But trust me, the key to saving is budgeting how your money will be spent from what you have.

One of the biggest financial mistakes you want to avoid is not knowing how much is being spent and on what.

So the first thing you want to do is list all your monthly expenses.

Then if possible, set aside 10% of your total income as savings.

The method I use and recommend is, assigning an envelope labelled with each expense and put the exact amount in them every month.

2. Have a Separate Bank Account for Savings

You do not want to have access to all of the money in your main bank account.

So its always a good idea to have another account that you can’t easily access.

This is a great way to save it and forget it.

So that 10% percent I mentioned above, this is where it will go.

Even if it falls a bit under, stash away your extra cash.

Alternatively, if you have a good amount of money remaining in your budget that you want to put towards an investment, this is your opportunity to do so.

3. Quit Dining Out Regularly

Who doesn’t love dining out at their favorite restaurant?

I know the thought of not having to make groceries or cook dinner sounds amazing.

You might be tempted to dine out everyday but that’s a drain on your pockets.

Not buying so much fast food was one of the best decisions I made regarding my wellbeing.

Since I now cook 95% of my own food, this has saved me hundreds of dollars that I would have been spending otherwise.

Imagine 2-3 meals per day, by 15-20 days for the month; it would most likely be twice that of your monthly grocery bill.

What I suggest doing instead is spending half of that money on groceries and cook at home.

Not only do you get to save money but it may also be a much healthier option (less money to spend on healthcare later on in life).

However, its still okay to enjoy life and dining out on occasions is completely fine.

4. Have Movie Nights at Home

You must be starting to wonder what sort of boring life is this.

Enjoy going to the movie theaters to see new releases of all your favorite movies?

Look, I know how tempting it can be to want to look at your favorite shows on the big screen.

I mean, who doesn’t?

But is that really a priority right now when the goal is to save money?

I think you already know the answer to that.

Don’t worry, I was guilty of going to the cinema all the time in my younger days.

Not realizing how much money was actually being spent on trips to the cinema.

It was not just the tickets, but the taxi fares, snacks and sometimes food that added up quickly.

Eventually, I decided to invest in an Amazon Fire Stick and a Roku Player to stream movies online and only go to the theater on occasions.

You may also be interested in: 50 Journal Prompts To Have An Amazing Year

As much as I miss going to the cinema every other week, I do enjoy watching a good series or movie in the comfort of my home.

5. Stop Buying Starbucks Coffee

This may not be you but this was once the story of my life.

I was once guilty of buying multiple Starbucks drinks a week.

Now, I can’t tell you when last I bought one!

How many Starbucks coffee do you purchase per day?

On average, a lot of people buy 2-3 coffees a day and that sounds expensive!

Let’s say you buy 2 Starbucks coffee at $5 each, that’s $10 per day and $50 a week, excluding the weekends.

That’s a total of $200 a month in just coffee.

Coming from a coffee lover and former Starbucks junkie, you can imagine how hard it was to quit the Starbucks runs.

Those $5-$6 a cup of Cinnamon Dolce Latte with almond milk almost everyday racked up a pretty penny.

Now, I only buy Starbucks coffee on occasions.

What I did was, invested in an espresso machine in order to keep my expenses down.

That way I still get my coffee fix but on a budget.

6. Cancel Your Unused Gym Membership

Have you ever joined a gym, paid for the month and probably only went to the gym twice?

Umm yeah me too and its a total waste of money.

So now I enjoy the gym that is in my building for free and I can use it anytime I want.

When I get tired of the gym I switch up my routine by going for long walks/runs.

7. You Don’t Need a Monthly Cable Subscription

Are you still paying for cable in 2024?

If you are, then now is a good time to call up the company and cancel that subscription.

Due to the fact that I hardly ever watch cable tv and I have a Netflix and Disney Plus subscription, as well as Amazon Prime (which I don’t utilize), an Amazon Fire Stick and a Roku streaming player, my options to watch tv shows and movies are unlimited.

Sorry, but I don’t subscribe to the HBO Max, Peacock and the like, for the simple fact that I don’t watch a lot of tv.

8. Cancel Other Unused Subscriptions

I won’t go into detail about how much money I wasted on subscriptions that I did not use for months and years.

These add up especially when they come out automatically from your card, so you forget them and they remain unaccounted for.

There are so many apps now that can keep you updated on your subscriptions and even cancel them if needed.

9. Pay In Cash For Things You Don’t Need

I know it may not be practical to walk around with a lot of cash but just before you make a big purchase, withdraw the cash at the ATM.

This is especially so for things that you don’t necessarily need.

It is so much easier to buy when you are paying with plastic, or worse, things like Apple Pay.

Start paying in cash and you will become much more hesitant to bad spend money.

When you see that money leaving your hands you will rethink your poor decision.

It hits different!

10. Buy Generic and Avoid Splurging on Designer/Brands

Yes I know we all have our favorite brands we love to make richer.

But hear me out for a second.

Unless you are already rich/wealthy then please take care of your finances before you invest in designer brands.

If that was the case, I doubt you’d be reading this post anyways.

Nothing is wrong with purchasing key investment pieces, but become finally stable first.

This also goes for when shopping for groceries or household items, opt for generic brands instead of name brands.

They’re often just as good quality-wise but come at a fraction of the cost.

11. Shop smart

Before heading to the grocery store, make a list of what you actually need and stick to it.

You don’t need a physical list when you can utilize the Notes app on your phone.

Avoid impulse buys and try shopping at discount stores or using coupons to save even more.

If you can shop online with your list in hand, to avoid picking up extra things, that’s even better!

But the same applies with not adding extra stuff to your cart.

12. DIY whenever possible

Ever paid for something you could have done yourself and later regretted it?

Yeah, me too.

So, instead of paying someone else to do things like landscaping or home repairs, try doing them yourself.

You can find tutorials online for just about anything, and you’ll save a ton of money in the process.

13. Set Financial Goals and Prioritize them

Lastly, set clear financial goals for yourself and track your progress.

Whether it’s saving for a vacation, paying off debt, or building an emergency fund, having goals in place can help motivate you to stick to your budget and save money in the long run.

Wrapping Up How To Save Money Fast On A Low Income

In a nutshell, if you follow the above recommendations, that’s how you save money fast on a low income.

I hope these tips help you save money and reach your financial goals, even on a tight budget.

Remember, every little bit adds up, so don’t get discouraged if you don’t see immediate results.

Keep at it, and you’ll be on your way to financial success in no time.

Are there any things you need to cut back spending on this year?

Let me know in the comments and remember to share if you enjoyed it or know someone else who would benefit from reading it.

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Last Updated on May 20, 2024 by Shevy