{"id":1053,"date":"2024-08-23T01:48:57","date_gmt":"2024-08-23T01:48:57","guid":{"rendered":"https:\/\/www.sprucemoney.com\/resource-center\/?p=1053"},"modified":"2025-03-29T03:38:09","modified_gmt":"2025-03-29T03:38:09","slug":"how-to-save-money-on-a-low-income","status":"publish","type":"post","link":"https:\/\/www.sprucemoney.com\/resource-center\/savings\/how-to-save-money-on-a-low-income\/","title":{"rendered":"How to save money on a low income"},"content":{"rendered":"\n

Putting aside money for savings is sound advice. But if you\u2019re not making a lot of income, trying to save can feel like a huge hurdle. And that\u2019s without factoring in inflation or unexpected expenses \u2014 like having to buy new tires for your car or purchasing cleats last minute for your child\u2019s summer soccer league! So, what is the answer when you\u2019re trying to figure out how to save money on a low income?<\/p>\n\n\n

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Essentially, it comes down to finding small ways to save that stack up. If you follow good money management habits over time, you can be on your way to financial stability day by day. It may seem like a chore at first but knowing that you can build a cushion for the unexpected or for a big purchase can take a load off of your mind. Plus, the more you save, the more you can avoid putting purchases on a credit card unnecessarily.<\/p>\n\n\n\n

Learn more as we guide you through savings tips for low-income earners, including tips if you\u2019re on a fixed income.<\/p>\n\n\n\n

How to save money fast on a low income <\/strong><\/h2>\n\n\n\n

If you question how to save money fast on a low income, it comes down to one word: budgeting. Without a budget, people tend to spend without really thinking, which can add up to hundreds if not thousands of dollars over time. It\u2019s especially important to stretch your dollar as far as it can go when you\u2019re working with a limited income.<\/p>\n\n\n\n

A personal budget<\/a> can help you gain control of your spending and saving. It ensures you don\u2019t overspend, run out of funds, or fail to pay off debts (such as credit card debt or student loans).<\/p>\n\n\n\n

To create a budget, you should first calculate your total income. You can do this by referencing income from paycheck information or bank statements. Then outline your expenses. Draw this information from bank or checking account statements as well. After you\u2019ve calculated money coming in and out, categorize the type of expense into necessities, savings, debt reduction, and frivolous spending categories.<\/p>\n\n\n\n

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Use your list of incoming and outgoing money and plug it into a budget method that keep your spending in check. Popular methods for those with a smaller budget include the 70\/20\/10 budget, which helps you turn your disposable income into savings. Another option is the pay yourself first<\/a> method. Both methods are outlined in our post on how to create a budget<\/a>.<\/p>\n\n\n\n

Speaking of savings, we have an easy and free savings tool for you. Using Spruce\u2019s saving goals<\/a>, you can set personalized goals, add funds, and track your progress along the way. Plus, you can check out our savings calculator<\/a> to figure out how long it may take to reach a personal financial goal.<\/p>\n\n\n\n

Now that we\u2019ve covered a bit on budgeting, you\u2019re probably wondering about how to save money fast on a low-income budget \u2013 with actual strategies.<\/p>\n\n\n\n

Here are a few savings tips for low-income earners:<\/h2>\n\n\n\n
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  1. Do things yourself.<\/strong> Whether it\u2019s cutting your own hair or washing and detailing your own car, there are many tasks people usually hire others to do \u2013 but realistically you can do them yourself! You\u2019ll surprise yourself!<\/li>\n\n\n\n
  2. Cook for yourself: <\/strong>Speaking of doing things yourself, cook for yourself more often. Whether it\u2019s dining out or fast food, it\u2019s generally going to be more expensive than making meals at home \u2013 especially during times of inflation<\/a>. Think about what it costs to have lasagna at a restaurant instead of at home. If you need incentive to save this extra money, just take a look at your last few restaurant receipts. It\u2019s easy to see how fast dining out adds up.<\/li>\n\n\n\n
  3. Start cost-splitting. <\/strong>Are there products or services you currently use that you could split with friends or family? Think small appliances or tools. If so, share a product or service with them! Why not get a 50% reduction?<\/li>\n\n\n\n
  4. Try bargain brands.<\/strong> Swap out name brands for generic brands. You can save hundreds of dollars at the end of the year by doing this. Plus, you probably won\u2019t even notice the difference in taste or performance.<\/li>\n\n\n\n
  5. Consider hidden fees:<\/strong> If you look at each billing statement separately, you can review if you\u2019re paying hidden fees for a specific service. If you spot them, consider negotiating the cost down or finding an alternative source for the service. Check with your service providers for discounts to help lower your bills. Another example is if you\u2019re encountering fees to pay bills (like online bill pay fees), investigate how you can pay the bills for free. Your first saving goal may be to save enough to pay one bill all at once, instead of two to three times per month.<\/li>\n\n\n\n
  6. Ditch the frequent coffee runs (and other needless spending):<\/strong> Cutting these out entirely can feel like draining the fun out of life. But, if you\u2019re able to cut back on these perks by 50% or more, you can consider the ones you keep as a happy reward for minding your finances. A little goes a long way in terms of spending. Here are some areas you could consider trimming coffee runs, online shopping, subscription services, and. meal delivery services.<\/li>\n\n\n\n
  7. Reduce reoccurring bills: <\/strong>As you review your expenses, think about ways to reduce how much you spend. Every dollar you don\u2019t spend can be a dollar that you save. Common costs where you might be overspending on:<\/li>\n<\/ol>\n\n\n\n