Saving some money seems like a reasonable thing to do when you have a lot of it. But, what if you are really pushed for money every month? Is saving money with a low income just a pipe dream? We don’t think it is. That is why in this article we aim to show you 12 must-know tricks that will teach you how to save money with a low income.
Saving money hinges upon careful planning and reducing unnecessary expenses. Check out even more tips on how to budget your money wisely. Without further ado, we now present you with tricks on how to save money with a low income.
Table of Contents
#1 Stick to the budget you create
Setting a budget may sound like limiting yourself, but it doesn’t have to be that way. You just need to stay realistic and dedicate a set amount to your rent, fuel, groceries, bills, etc. each month. Monitor your spending habits for a while and plan your budget accordingly. Think of creating a budget as a way to bridge the gap between your savings goal and your actual savings. Read more about how to create a monthly budget plan in our blog.
#2 Get into a habit of saving
It’s good practice to set aside your savings money each month. It can be 10%, 5% of your earnings, or even less. The intention of saving money is what matters, no matter how small the set amount is. It’s important that you save money for a rainy day to be able to allot your savings to any uncalled-for emergencies. Set up an automatic transfer to your savings account to avoid spending your intended savings.
#3 Save money with the help of paid surveys
Paid surveys are an excellent way of making some easy money. You just need to take a couple of minutes every month to complete them. The best part is that you don’t need any experience and you can do them whenever and wherever. You’ll be able to withdraw that money to your PayPal account and allocate it to your savings. Follow the next steps and get paid for expressing your opinion honestly.
- Register for free – use the same email you use for your PayPal.
- Check your inbox for survey invitations – you will receive invitations that best match your profile.
- Complete surveys – make sure you always answer honestly.
- Withdraw your money – once you reach the payment threshold, you can withdraw the money with a click.
#4 Set a food budget too
Eating out too often can literally eat up all your income. An occasional night out with your friends or family is ok, but in general, try to plan your meals and cook for yourself whenever you can. It is likewise important to keep an eye on your spending on groceries. Try to use what you already have on hand before purchasing more groceries.
Don’t buy fast food, but rather buy ingredients from groceries store and prepare the food yourself. Also, it’s worth emphasizing that you should never go grocery shopping on an empty stomach. Make a shopping list and go to the grocery store on a full stomach. When it comes to drinks, try to replace most of them with filtered tap water. Water is better for your health than any other drink out there.
#5 Remove the subscriptions
A lot of people are often unaware of how many subscriptions they have they don’t actually use. If you are subscribed to Netflix, Disney +, HBO Max, and Prime at the same time, chances are that you will actually be using just one of these streaming services. Simply cancel all the subscriptions that you can do without. Look out for expensive phone plans, as well.
#6 Buy quality necessities
There is a saying: It’s expensive to be poor. When you have only little money to spend, you often purchase temporary solutions that you have to replace over and over again. This is especially true in the realm of electronics and clothes.
Also, try not to yield to the temptation of buying the newest item. Wait for deals on the items you need. Check out these cool tricks on how to save money on clothes.
#7 Find affordable entertainment
When it comes to entertainment, all of us tend to overspend. However, there are a lot of frugal entertainment options that won’t leave you feeling deprived. These are just some of them:
- Hosting dinner parties
- At-home date nights
- Exploring museums
- Practicing how to cook
- Going to the library
Libraries are one of the most popular frugal sources of entertainment. They offer not only books but also movies, CDs and even free local attraction passes. When you have your own library card, you’ll even be able to borrow books online via the Libby app that is connected directly to your local library. If you are a keen reader and you enjoy poetry, why not consider starting your own poetry blog?
#8 Spend cash instead of cards
If you want to be financially disciplined, train yourself to spend cash instead of cards. When you have to physically hand over paper bills instead of a card it feels more real since it’s tactile. This will make you pause before spending here and there and it can prevent overspending. Once you are more disciplined about your spending, you can stop this practice. Let’s face it, no one wants to carry around cash and pay with spare change, so the coins often become wasted money.
#9 Pay off your debts
Always try to pay off your credit card debts in full every month. Try not to treat credit cards as instant bank loans, but rather like your debit card. It will prevent you from taking out more money than you have at the moment. Don’t pay interest and go into debt through credit card use.
The interest keeps growing, making it impossible to pay off the entire debt for a very long time. If you are already in debt don’t add to it. Make it your highest priority to tackle your debts to make room for savings. Once you settle your debts, you are closer to reaching your financial goals.
#10 Keep your body healthy
If you are on a budget, it is vitally important to keep yourself fit and healthy. If your body gives out and you fall sick, that can cost you thousands in medical bills. Keep in mind that you will also lose your income if you have to stop working. Get preventative healthcare which is far less expensive than paying money for treatment once you get sick.
It doesn’t take a ton of money in gym memberships or expensive equipment to get yourself fit. There are hundreds of YouTube videos with home exercise plans. Very often, your body weight is all the resistance you need. Don’t forget about running outside. It’s a great way to knock off pounds and keep your heart pumping.
#11 Keep an eye on your car costs
If a car is your basic means of transportation, buy a used car from a reliable brand. A car goes down in value the moment you drive it off the lot. This makes it a liability, not an asset. New cars lose 15% to 25% of their value every single year for the first five years.
You can get a car that is practically the same quality gently used. If you are concerned about the wear and if the previous owner took good care of the car, buy a used car from a reliable car manufacturer, such as Toyota, Ford, or Honda.
Keep in mind that registration, repairs, and car insurance are constant costs as well. When it comes to car insurance, always shop around to find the best deal. Fuel is another expense and you should try to use less of it whenever you have a chance. Use public transportation, cycle to work, and stay home on some weekends.
#12 Cut down on utility costs
Something so simple as switching from old incandescent bulbs to LED bulbs can make a difference in the electric bill. Remember to turn off the lights that aren’t being used and unplug the electronics that are sitting idle. Adjust your thermostat to a lower temperature in the winter and higher in the summer. Just a few degrees will make a small difference in your utility bills. Take quicker, cooler showers to reduce your water bills.
If you are a low-income earner, you can oftentimes find yourself getting discouraged when it comes to finding ways to save money. It’s true that there might not be much left over to stash away in your savings. However, lower income usually means lower expenses too. That also means that you are used to not wasting money. With the right strategy, you can learn how to save money, as well.
We hope that with the help of our tricks, you will be able to put some money aside every month. Interested to find ways to increase your income? You may want to take a look at our blog and learn how to earn money online without investing any money.