How To Save Money Fast On A Low Income?

Do you want to learn how to save money with low income for a financial cushion? Are you worried about surviving on a low budget? Nowadays, it is a challenging task to save money, but it might not be impossible even if you don’t have a saving habit.

In the following section of the article, we provide 19+ best money-saving methods that are helpful to achieve your saving goals.

Average Household Cost of Food

Dig a little deeper; saving money is necessary for everyone and helps protect yourself from debt or rainy days. People look different unique ways due to the high rise in interest rates, expenses, and inflation.

However, it is a challenging task to live a comfortable life with a low salary. If you are also struggling to achieve goals, you are not alone. The personal saving rate has fallen in the United States in the last two years. 

Moreover, the U.S. Bureau of Economic Analysis states that the saving proportion is 10% across the country. In contrast, the other nations save 20% of their income.

There are still ways to manage income and stretch a budget efficiently, even if you earn a small amount.

Tips to Save Money Fast on a Low & Fixed Income

The recent GOBankingRates conducted a survey and showed an alarming statistic. The report claims that 40% of U.S. residents hold less than $300 in savings in their bank accounts and use credit cards for unexpected expenses.

On the other hand, there is still time if you don’t have savings and start financial planning without wasting time.

Saving Money Fast On A Low Income

Here are the best personal finance tips to save money with a low and fixed income.

Track your Spending:

The first method is to track monthly spending to determine where your money goes. And decide to cut back on unnecessary expenditure. Pay full attention to small expenses because you can make a lot of money by controlling the unnecessary small costs. 

How to Track Spending?

  • Use a mobile application or spreadsheet to insert all the daily expenses.
  • Examine the spending patterns and make necessary adjustments.
  • Track spending includes all the fixed costs, such as loan payments and rent.
  • Always set a monthly spending limit and stick to the limit.

What to Track in Your Spending?

  • Amount
  • Money used for
  • Date
  • Method of payment
  • Where do you spend the money?

Best Apps to Track Spending:

Here are the best apps to track expenses in 2024.

  • Mint – Overall free app
  • Goodbudget – Best for beginners
  • You Need a Budget (YNAB) – Best of severe budgeters
  • QuickBooks Online – Best for small business owners
  • Expensify – Best for business expenses

Benefits of Tracking Your Spending:

  • Identify where your money is going
  • Set realistic savings goals
  • Make necessary adjustments
  • Allocate more funds for essential items.

Create a Budget that Works for You

A budget is a road map to track money and achieve financial goals. It is beneficial for all individuals to save money with a fixed income. 

How to Create a Budget on a Low-Income?

Are you struggling to manage money and face difficulty in completing financial tasks? 

Consider the following tips while creating a budget.

1. Add up your Total Income:

Firstly, include all the monthly income in a list, such as salary, incentives, child support, and other received income.

2. List all of your Expenses:

After determining your income, the second step is to write down all your expenses. Add food, rent, entertainment travel, and other fixed or variable expenses to a list. 

3. Set Realistic Savings Goals:

The third step is making a saving goal after getting the monthly income and expenses information. Realistic saving goals assist individuals in getting an idea about the money required for each month.

4. Prioritize your Essential Expenses:

People bear many essential monthly expenses, such as transportation, food, and rent. They need enough money in a pocket or account to cover all these expenses.

5. Factors in Unexpected Expenses:

Keeping money aside for unexpected expenses such as medical bills or car repairs. Use the following tips if an emergency happens.

6. Find ways to Cut Back on Discretionary Spending:

After making a budget, consider different ways to cut back on extra spending. For example, coffee at home instead of going to the café. Secondly, use public transport instead of using a car. Thirdly, prepare meals at home instead of going to restaurants.

7. Seek Assistance if Necessary:

Due to the tight financial situation, people can get financial assistance from nonprofit organizations or government programs. They provide financial services on easy terms.

8. Adjust your Budget as Needed:

There is no need to be afraid while adjusting a budget. Make a habit of regularly reviewing the budget and making necessary changes to achieve the financial plan. 

Tips to save money fast

What to include in your budget?

  • Income
  • Variable expenses 
  • Fixed expenses 
  • Emergency expenses 
  • Savings

Automate your Savings

Automate saving is an excellent approach to staying on the savings goals path. After enabling it, the money is automatically transferred from a checking account to a savings account. Now, there is no need to move the amount manually. You only need to fix the frequency and amount you want to save.

Advantages of Automated Savings:

  • Never forget to transfer the amount
  • Assist in sticking to your budget
  • The automated savings process is very comfortable.
  • Adjust the frequency and amount according to the desire
  • Save money without thinking about the automating process

Disadvantages of automated savings:

  • There is not enough money in the checking account for smooth transfers
  • In manual processes, sometimes forget to transfer the amount
  • It can be challenging to adjust the required frequency and amount. 

How to Automate Savings?

  • Firstly, set up an automatic transfer.
  • Secondly, choose the transfer frequency and amount.
  • After that, enough money is required in your checking account for the convenient transfer. 
  • In the end, adjust the frequency and amount according to your desire.

Cut Out Unnecessary Expenses

Bank statements are a convenient way to eliminate unnecessary spending. It is easy to get a financial picture and identify all expenditures, such as streaming content, property tax, entertainment, or subscription services.

Moreover, eliminates all the unnecessary costs that increase debts if you use fast foods during work hours. It is good to purchase pre-packaged snacks to make them at home and buy items from stores other than gas.

Sell your Stuff

People can make money by selling their stuff at the nearest yard or online. There are a lot of broken or unnecessary items at home, such as toys, furniture, electronics, etc. We can make money by selling scrap material at a scrap yard.

Secondly, find the nearest junkyard to sell old or junk cars. Use a consignment store to sell your used or unused clothes.

After selling all the items, use the money to pay off debt payments and deposit the remaining amount in a savings account. This approach assists individuals in easily accumulating a lot of money. 

Set Aside Money for Emergencies

Due to the rise in prices and inflations, set aside a small portion of money for unexpected expenditures. For example, use the funds for inevitable situations or essential large purchases. Whereas if you don’t have a habit of keeping money for emergencies. Make a plan and save a small amount daily, even $10 or $15.

Save Money on Housing

While making a budget, make savings by cutting back on housing costs. It is considered the most expensive category, and people spend a lot on rent, utilities, mortgages, internet, insurance, maintenance, and even cleaning products.

Moreover, save more by living in a cheaper place. Insurance companies are the best option to save more by adjusting coverage.

Save Money on Food

Over the past few years, grocery and food prices have been increasing. It is essential to make a food budget to live comfortably.

For low-income people, food is considered the most expensive category. However, people can use different ways to save money on food, and some are as follows. 

  • Plan your weekly meals.
  • Make a grocery list based on your requirements.
  • Follow the list and buy products from the grocery list
  • Buy discounted items and use coupons
  • Make a habit of preparing meals at home
save money on food

Create and Stick to a Budget

Budgeting might be stressful, but it has many advantages. It is essential for all individuals, no matter their earning level. Nowadays, many people spend without a plan and face difficulties on rainy days.

A budget provides a road map to manage finances, control expenditures, and save for future spending. While making a financial plan, set an amount for fixed or variable costs and be realistic to get a financial target.

What are Fixed Expenses?

  • Alimony or child support
  • Rent/Mortgage
  • Car payment
  • Utilities
  • Student loan payment
  • Insurance payments
  • Day care expenses
  • Monthly memberships

What are Variable Expenses?

  • Groceries
  • Renters Insurance
  • Medical appointments
  • Medications
  • Gasoline, parking, tolls
  • Car maintenance and repair
  • Credit card payments

How to do a Budget?

Consider the following steps while creating a budget.

  • Firstly, identify and calculate your monthly income.
  • Then, figure out your expenditures.
  • In a list, include “Pay Yourself” items (down payment, emergency fund, vacation) 
  • Discretionary Expenses (dining out, entertainment, clothing, etc.)
  • After that, create a tight financial plan without adjusting basic needs. You can use accounting software or spreadsheets to get convenient results.
  • Now, compare the income and expense sections and adjust the difference.
  • Finally, implement a plan and stick to it.

Find Free or Affordable Entertainment

If you spend much on leisure activities, find accessible or affordable entertainment opportunities. 

Here are a few entertainment options.

  • Practice cooking with your partner.
  • Host dinner parties 
  • Watch a movie at home instead of going out
  • Visit local library
  • Go for a hike
  • Matinee movies
  • Play games at home
  • Explore free museums

Save on Transport

Transportation is an expensive medium to travel from one place to another. People spend a lot on car maintenance and fuel costs. Using different economical mediums such as public transport, carpooling, walking, or bicycling saves a lot.

Reduce monthly expenses dramatically by choosing affordable modes of transportation rather than expensive modes. In addition, you will be able to clean the environment.

Cut Back on Utility Bills

Electricity and gas bills use a significant chunk of income. Find different ways to reduce the utility bills. Below are the tips to decrease utility costs.

  • Use smart thermostat
  • Change energy provider
  • Wear an extra clothes layer or remove a layer of cloth to cut your heating or cooling expenses. 
  • keep the temperature cool for taking a shower, 
  • Make a shower for a shorter period. 
  • Unplug all the items when you are not using them. 
  • Replace light bulbs with LEDs. 
  • Seal all the air gaps around doors and windows.

Change Lifestyle Habits

People have different bad habits and spend a lot on their monthly income. It is essential to save money by eliminating all the expensive and harmful habits such as drinking, smoking, gambling, and impulse shopping. Bad habits affect physical or mental health, and people lose hundreds of dollars.

Avoid Restaurants

Eating out is a significant financial drain that you can encounter. It disturbs your food budget if you regularly or once a week visit restaurants to eat prepared meals.

According to research, 40% of an American family’s household budget is spent on eating out. There are different ways to save hundreds of dollars by eliminating restaurant visits if you have a minimal budget. 

How to Break the Expensive Habit of Eating Out

  • Love freezer items
  • Avoid social pressures to eat out
  • Choose wisely
  • Pack lunch
  • Start small
  • Prepare lunches for the week
  • Make a dinner plan
  • Cook simple meals
  • Have a Backup Plan (spaghetti sauce and pasta or a frozen pizza)
  • Recreate restaurant meals at home
  • Buy ready-to-eat items 

Use Coupons

In online purchasing, use different discounted codes before placing an order. Many coupon websites and companies such as BeFrugal, Rakuten, Ibotta, Hotukdeals, and Groupon offer codes, deals, and cashback from various sources.

These coupons help to save money on purchasing non-essential items. There is nothing complicated about using coupons. A recent study showed that average households save $1,465 by using coupons.

Take up a Side Hustle

A side hustle is a good source to increase your monthly earnings significantly. Start a side hustle at any time. There is no need to leave your school or full-time job. The ability to save all your side hustle earnings can be exceptionally motivating and very satisfying.

Focusing on your mental health is more important than achieving any savings goal. Below are the popular job ideas that are equally beneficial for all individuals. Even 10 years, 12 years, and 14 years old, kids can easily start any job to earn passive income.

popular side hustles

Popular Side Hustles Ideas:

  • Rent out car
  • Real estate
  • Promote or advertise brands 
  • Start a YouTube channel
  • Online instructor
  • Rent out garages or yard space
  • Online sell different product 
  • Launch a paid newsletter or subscription
  • Monetize property on Airbnb
  • Freelancers
  • Learn a new skill
  • Tutor 
  • Washing clothes
  • Resell clothes
  • Referee
  • Photographer
  • Moving
  • Offer services on Fiverr
  • Print wrapping paper 
  • Baked goods
  • Blogging
  • Wedding planner
  • Purchase and place a vending machine
  • Graphic Designer
  • Pet sitter
  • Baby sitter
  • Dog walker

Buy Second Hand

Compared to the new items market, the second-hand sale industry has become the trendiest option worldwide. Due to the high rise in product prices, it is the best cost-saving option because many products are up to 50% cheaper than the original price. 

What second-hand items sell best?

  • Game consoles
  • Books
  • Cars
  • Smartphones
  • Furniture
  • Watches
  • Sporting goods
  • Flat-screen TVs

Use the Envelope Budgeting System

Compared to the old-fashioned method, Dave Ramsey’s cash envelope system is the best technique to track spending. At the start of the month, withdraw the total earnings from the bank and distribute it into different envelopes.

As a result of the envelope system, specific cash can be designated for several categories, such as rent, groceries, utility bills, entertainment, and charitable donations. Instead of using credit or debit cards, make all purchases with cash.

According to your budgeting plan, put money in each envelope. After spending all the money from the related envelope, you will find how much is left.

Prioritize your Health

Maintaining proper health care is the best way to save money in the long run. If you are sick, the hospitalization expenditures are very high and burn a lot of dollars. Taking good care of yourself is an excellent way to save money.

For example, eat well, exercise regularly, take good health care, and avoid spending much time in the doctor’s office and hospital.

Good health will reduce your chances of paying a huge medical bill. If you don’t want to pay membership fees, you can do many free activities to stay fit, like walking, running, and cycling.


By summing up, the tips mentioned earlier are best for saving money and getting financial stability. Low income doesn’t discourage from learning good money habits. Always look for different ways to save a little money, regardless of how much of an income you make.

Starting a business may not seem like the most exciting undertaking, but anything is better than nothing in the long run. Thus, once you have achieved your income goals, you can maintain financial stability and achieve other goals.

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Jessica joined savvybudgetnow in 2022 as a Content Analyst. An MBA-Finance graduate from Alaska Pacific University with three years of experience. She is a seasoned content writer specializing in finance niches and has worked as a content writer with Yahoo Finance, adding to her extensive expertise. Follow her on Twitter (@JessicaArn97) and LinkedIn (@jessica-arnold-53132120b)

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