Save Money on a Low Income

How to Save Money on a Low Income – 7 Ways to Live on a Tight Budget

The idea of saving is not so pleasing to the ears and most times, our pockets. This is due to various factors, including the coronavirus pandemic that has ravaged the world. Many people have seen a reduction in their income streams, having only so little to take care of themselves. So, when you hear about saving some money, you may cringe. But, even though it is not easy to save money on a low income, it is not impossible. You need to have some money on the side in case emergencies arise.

But first, let’s take a look at what causes your inability to save money on a low income.

Many times, even with the little you have, you purchase all the things you find exciting. When you shop, you spend on more food than you need and get many tools you don’t need.

Then, you make many excuses for not being able to save some money at the end of the month.

The truth is that you can save on a low income, and I’m going to show you how.

Before we go on, know that you can’t do this if you are not determined.

So, do away with the excuses and prepare your mind because I am going to teach you how to have some money in the bank and stay comfortable even when the world economy is falling apart.

According to the author of Rich Dad, Poor Dad, Robert Kiyosaki “it’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.”

So, you see, you can earn more money but still not be able to save or let your money work for you.

You complain that you can’t save until you make more money, but this is not true.

Let’s take a look at seven tips I’ve prepared on how you can save money on a low income.

7 Easy Ways to Save Money on a Low Income

Create a Choice Budget


Here, you draw up a plan for how you intend to spend your income when it arrives.

There are lots of wants and needs to be met. So, you need a budget to organize them based on importance.

Some of these expenses include groceries, light bills, gas, and debt repayment among others.

Designate the amount of money you see fit based on your previous shopping experiences.

However, you’re trying to save more money here. So, you’re going to be cutting off a small percentage of these expenses.  

It is your budget, create one that works for you. Allocate funds for each item or portion of the house you need to upkeep.

Write it out, so you will be able to track your spending. You might even out find that you have extra cash to save.

Budgeting keeps you accountable. Sometimes, you might go over budget for a particular expense but you can retrace where you missed it. This gives you an insight into where your money goes.

You know the item to cut down on and the one to allocate more funds to. When your budget works for you, don’t see it as an enemy.

Check out our simple budgeting guide for people who suck at budgeting.

Set Your Savings Aside

Start saving. If you don’t plan to save money, the money will not save itself.

To save money on a low income, cut out a portion from that income.

On your budget, first, remove 30% of your income to save. Then, create a budget on what’s left.

You shouldn’t save after you’ve spent all your money for the month, but before you even plan your spending.

Putting aside money is a way to earn or even pay yourself. You can never go wrong with saving.

One way to save is by creating a high-interest savings account at the bank. You can also go for saving apps that have significantly higher interest rates than the bank. Some of these apps include Chime, Digit, Clarity Money, Qapital, and Acorn.

To make it easier to save, you can automate your savings so that it leaves your account immediately you receive your income.

With savings, if there is an emergency, you do not need to scramble around, begging, or taking loans that will bring you even more debts.

No amount is too little to save. Even the money you were gifted or extra cash you found in your bag or pocket can go into your savings. Have something you can fall back on when you lose your job, recession hits or an emergency arises.

Save now!

Reduce your expenses

A Swedish proverb says “He who buys what he does not need steals from himself.”

If you spend money on what you don’t need, you are stealing from yourself!


Because you could have put it in your savings account.

You might say you don’t indulge in unnecessary buying, but check out that closet of yours. There are clothes that you haven’t worn since you got them. There are even many others that you’ve work once or twice and thrown in a pile, never to surface again.

These are the little things that take your money. You can reduce your expenses by setting priorities.

Weigh the opportunity cost by asking yourself “Do I need this? If I don’t buy it, will it cost me anything?” by doing this, you will be able to cut down on those spending.

I have been doing this lately and realized; that bag and shoe can wait. This does not mean that you should not take care of yourself. I’m only saying you should be careful while making spending decisions. “Is it necessary?”

By doing this, you realize how you have been spending the money you could have saved. Reducing your expenses will help you save better on a low income.

If you’re like I was, and have so many items you don’t use, declutter.

Stand Firm on your Budget

I got you here. This is where most people find it difficult.

After creating your budget, stick to it, don’t try to forfeit it. If you do, you might lose more than you know. Staying firm on your budget helps you to be financially disciplined in your spending.

Don’t put unnecessary pressure on your income by not sticking to the budget.

You might not be able to spend according to your budget due to an emergency; you don’t have extra cash somewhere or savings. In this case, return to your budget after the emergency is settled, and adjust it so it works till the end of the month.

Remember, you already saved some money before budgeting. You should not touch that.

You may also lack motivation because budgeting is new to you. If this is the case, reach out to a friend that can motivate you to stick with the budget.

Don’t try to handle it all on your own. Get help!

You can take control of your finances and save money on a low income. It’s not easy but it’s possible.

Have Multiple Income Streams

Imagine having your money coming from many sources.

Not only would you be able to save more money, but you also wouldn’t have to worry or stress over a few additional expenses and unexpected situations.

I’m sure right now your head is spinning with questions of how you can get another stream, or how it is possible because you are at work all day.

Well, let it spin no more. There are skills you can learn and monetize online.

Yes! Online.

It’s no longer news that people make money online.

Skills you can monetize include copywriting, video editing, graphics design, art and illustration, proofreading, editing, and social media management among others.

These skills when developed, pay well.

As long as you are competent, people will want to pay you.

And guess what? You get to earn as much as you want!

It is very possible to get highly paid in any of these skills which will move you from low income to high income. That is if you know what you are doing.

There are sites that you can log on to that provide jobs for creatives. These sites include Fiverr, Freelancer, Upwork, Pro blogger, Toptal, People Per Hour, and many others.

Choose one of these skills, focus, learn and start earning money. With this, you will be able to earn more and save more.

Here, we listed 15 side gigs you can start today to multiply your income streams. Check it out.

Minimize Your Spending on Entertainment

This is where most people spend the bulk of their money.

Reducing the way you spend money on ice-cream, pizza, eat out, Netflix, or data subscription will go a long way to help you save money.

Perhaps your Netflix subscription set is quite high or you subscribe to other things you don’t even use monthly. Why not cut down on the amount and go for lower subscriptions or cancel your subscription on some of these services?

If you are the type that eats out often, try preparing home-cooked meals. It will become much easier to save on a low income this way.

Little expenses here and there can sink your finance, you might not know it. Channel that money into your savings. Once again, I am not saying you shouldn’t enjoy life, just don’t do it at the expense of your finances.

Look For items in Your Closet and sell

Remember that I talked about those clothes in your closet, that you haven’t worn or you will never wear again.

Do you have shoes that don’t fit anymore? Well, now is a good time to sell them.

By selling them, you make money which you can save.

There can even be more items in there.

You just have to take time out of your day to rummage and clean through those heap of clothes. Declutter.

Trust me, you will find something in there that people are willing to buy.

When you’re ready to sell, you could use your social media page or online stores like Amazon, and eBay, or sell even one on one.

Take advantage of your closet.

If you have some items you think are useless, that you even plan on throwing, don’t do it!

Look, and sell! You just never know who wants it.

What Am I Trying to Tell You?

All that I’ve been saying since is this: saving money on a low income is possible.

You don’t have to earn millions before you can save.

Money doesn’t spend or save itself, you’re the one in control of your money. Take control today and save.

The fact is, if you can’t save now, you won’t be able to save as much when your income is high.


Because you don’t have the savings education, strength, discipline, and idea of how to track your expenses or see the areas you spend much money on.

You won’t know how and when to cut down.

Many high-income earners cannot save.

Will you say it’s because of their high income or they struggle with low income?

No, that is not the problem in this case. They just never tried saving.

Now is the time to start saving, not tomorrow.

Did you find these eight easy tips helpful?  Do well to share on your social media page.

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