How To Save Money Fast on a Low Income: 7 Smart Tips That Actually Work

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Saving money on a low income can feel impossible when every dollar is already spoken for. With a few simple strategies, though, you can start building a savings cushion faster than you think. This guide shares real-life tips anyone can use and learn how to save money fast on low income.

1. Understand Your Finances First

The first step of saving money is to have an understanding of your finances. Here are a few suggestions: 

1. Start by listing your income sources and monthly expenses. This includes rent, utilities, groceries, transportation and any recurring subscriptions or debts.
2. Review your savings and emergency funds. Have a clear understanding of how much you have in your savings as well as your emergency funds. This gives you a clear picture of any savings goals you may already have in place. 
3. Know your credit score and history. You’re entitled to pull your credit report for free every year. It’s a good idea to have a clear picture of where your credit stands. 

2. Cut Costs and Maximize What You Have

You may be richer than you think. Take a closer look at what you have so that you don’t have to spend extra money. Here are a few strategies. 

• Use what you already own: Take a quick inventory of food, toiletries and clothes before buying more. 
• Meal plan: Use the ingredients and foods in your pantry before getting groceries or eating out. 
• Repurpose or repair items: Instead of replacing an item, determine if it can be fixed. 
• Reduce utility usage: An easy strategy is to take shorter showers, unplug electronics and use LEDs to save on your electric bill. 
• Be proactive about your bills: Call service providers like your phone, internet and insurance company to see if they can lower costs — especially if you’re a long-time and good customer. 

3. Use Smart Tools To Stay on Track

You don’t have to stay on track without any help. There are several handy tools to help you reach your financial goals. Check out some of these recommendations: 

• Use a budgeting app: Apps like YNAB, Mint or Rocket Money can track income and expenses.
• Enable bank alerts: Use bank alerts and spending limits to avoid overdrafts and overspending. 
• Take advantage of Google Sheets: Use Google Sheets to make your own customizable DIY money tracking tool. 
• Add a subscription manager: Subscription managers like Trim or Subby will help cancel unused services. 

4. Add Income Streams When Possible

Side hustle? Freelance gig? These are potential income streams to add to your existing job. Here are ways to add income streams:

• Freelance your skills: If you can write, design, tutor or edit, you can work with platforms like Upwork or Fiverr to generate income. 
• Turn a hobby into income: If you have  a hobby like crafting, baking or photography that you can turn into a side hustle, don’t hesitate to use this as a way to get extra income. 
• Rent out space: If you have an extra room or space, decide if you want to rent it on Airbnb. 
• Explore a part-time job: Find out if you can get part-time or seasonal work at a local business or online. 

5. Make Saving Automatic and Sustainable

It’s great when you don’t have to think about saving money. There are tools to make savings automatic. Here are a few tips:

• Direct deposit part of your paycheck. You can set up your paycheck so a part of it will automatically be deposited into your savings account. 
• Open a high-yield savings account. You want to capitalize on the money that you are already saving. Many high-yield savings accounts offer 3.00% to 4.00% APYs. 
• Automate retirement contributions. Deposit money into your 401(k) or IRA through your employer or brokerage.

6. Extra Help: Community and Government Support

You can use government programs to get support to help you achieve savings goals. Here are some programs: 

• Housing Assistance Programs. Local housing authorities, HUD vouchers and rental relief can free up income for savings.
• Free Financial Counseling. Programs like GreenPath, NeighborWorks or local credit unions offer budgeting and debt-help services.
• Utility Assistance. LIHEAP and local programs help cover heating, electricity and water bills — especially during winter or summer months.

7. Small Savings Goals: Daily vs. Weekly vs. Monthly

Not sure how much money it takes to build your savings? Check out this table to help you start saving today. 

Quick Tips To Save $100 This Week

Stacking a few of these tips together in one week can easily help you save $100. Check out these tips: 

• Skip takeout and cook at home: Save $30 to $50
• Stick to a grocery list and use what’s in your pantry: Save $15 to $20
• Cancel one streaming service: Save $10 to $20
• Carpool or skip a rideshare trip: Save $10 to $25
• Do your own nails, car wash or grooming: Save $20 to $40
• Return or cancel a recent impulse buy: Save $20 to $50
• Use coupons or cash-back apps like Ibotta or Rakuten: Save $5 to $15
• Sell something you’re not using, such as clothes, books, gadgets: Make $20 to $100
• Use a cash-only envelope method for groceries: Make $20 to $40.

Live Cheap, Not Miserable: Real Frugal Wins

• Host game nights instead of going out.
• Shop secondhand for clothes and furniture.
• Find free community events or library programs.

Final Take 

You don’t have to make a lot to save a lot. Start with one change this week — cancel a subscription, sell something or cook instead of ordering out. Every dollar saved is a step closer to your goal.

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