Best Ways To Save Money On A Low Income
If you are trying to save money on a low income, it may loook like a real hallenge. But you should not feel like you have to put your goals of retirement funds or a home down payment on hold.
Incidentally, there are some innovative ideas on how to save money on a low income. you will need to think outside of the box, it is quiet possible to save money when you are earning low as per your expectations
Consider taking it a challenge to increase your savings with a frugal approach with your budget that won’t cut out the fun parts of life. Today we will share real tips that can help you save money.
If you have a low income, it will need a focused effort to save money. It wont be a cakewalk but the ride will be worth experiencing . Consider taking action on the tips that stand out below.
Build a budget designed for you
Budgeting might sound like lots of planning ,technicalities than it’s worth, but it can help you to save a lot.
Unless you have a plan for your money, it will be extremely easy to spend it. With a budget, you will have your savings goals. Instead of aimlessly saving what’s left over each month, you can meet your savings goals through careful budgeting.
If you aren’t sure how to build a budget, tthere are multiple videos on youtube to guide you on the budgeting aspect for daily households. .
Learning how to budget is essential when it comes to how to save money on a low income.
Lower your housing costs
According to a study conducted by the U.S. Bureau of Labor Statistics, housing expenses may be one of your biggest expenses. Imagine if you can reduce your housing expenses by a few hundred dollars each month. Check if you really need 3 room flat or a 2 car parking house ?
That money could make a huge difference in the amount of your savings and overall quality of life.
There are different ways to cut your housing costs including:
Consider a small apartment or home as a way to slash costs.
Move to a new location
Location is a key detail in real estate prices. Could you save money by switching up your location? For example, moving from downtown to the suburbs could be cost-effective in some areas.
Rent out rooms
If you have extra space in your home, you could rent them out to reduce your housing expenses. This is a good way to house hack. Consider long-term tenants or short-term rentals through a platform such as Airbnb.
Have a look at your situation and what works best for you. An affordable place to live can completely change your finances.
Pay off your debt
Debt can hold you back from achieving many financial goals. The perenial financial strain on your budget will leave no room for savings at the end of the month.
Make it a priority to settle your debt. It will take some commitment to pay off your debts, but it will lead to an easier life. You’ll be able to put the money you were exhausting for debt repayment towards your savings. If you want to take action today, then check out our debt repayment strategy course.
Be more mindful about food spending
Food expenses can wreak havoc on any budget. The temptation to eat prepared food at a restaurant every other day will increase your food budget. However, this is a good area to really focus on when it comes to how to save money on a low income.
According to the Bureau of Labor Statistics, the average household spent over $3,000 on food away from home. Although you may not be spending such amount on food outings, there is always a room for self discipline . Look for ways to cut your restaurant spending.
One of the better ways to reduce last-minute food purchases is through meal planning. If you already know what you are supposed to eat for dinner, it is easier to drive home without stopping at your favorite take-out place. Meal planning may take some time to get used to.
Finally, make sure that you aren’t overspending on groceries. Take a look at your pantry to see if you can prepare some meals with what you already have on han
Automate your savings goals
Making the choice to save money may be difficult. Forcing yourself to save money each month on every activity can be unrealistic. You are more likely to spend all money in your checking account. Unless you move your savings automatically, you risk spending your intended savings.
With each paycheck, set up an automatic transfer to your savings account. You’ll be able to breathe easy knowing that your savings are safely deposted
You won’t regret putting your savings on autopilot
Find free or budgeted entertainment
One area of your varying budget is your entertainment budget. You can easily overspend in a big way with entertainment. On the other hand , some frugal entertainment can allow you to pad your savings without feeling deprived.
Here are a few of my favorite entertainment options that don’t break the budget:
- Matinee movies
- Host dinner parties instead of going out
- Go for a hike
- Practice cooking with your significant other
- Look for free museums to explore
Do some research in your area to find the best frugal entertainment options. For instance, at-home date night ideas or family fun night ideas.
The library can be a great source of free entertainment. But it offers so much more that it deserves its own mention.
Of course, you can check out books, movies, and CDs. But most libraries often have many more. For example, there might be community events, free local attraction passes, seeds for your garden, and more. Talk to your local librarian to see what is available at your library.
The library is my favorite frugal resource! Check out yours today. If you aren’t sure where to find yours, then find it on Overdrive. Once you get your library card, you can borrow books online via the Libby or Overdrive apps that connect directly to your local libra
Get a fee-free bank account
It isvery easy to keep paying unnecessary fees. According to the Consumer Financial Protection Bureau, the median overdraft fee at banks is $34. That coupled with other banking fees can lead to a leeching effect on your financial situation.
If you find that your bank is constantly charging fees, then it might be time to make a switch. There are many banks that advertise free accounts without any associated fees. Why not take advantage of that opportunity? It could help you avoid any unnecessary banking fees down the lin
Evaluate your car costs
A car can come with thousands of dollars of annual maintenance expenses each year. In addition to a car payment, you also have to contend with several other associated expenses. Car insurance and repairs are just the obvious ones which we see.
You can lower these costs in a few ways.
Comparison shop for car insurance
You might be able to save hundreds of dollars each year by switching to a different insurance company.
Eliminate your car payment
Try to pay off your car early. In the future, avoid financing a car when possible due to the high costs.
Use less fuel
You can cut down on fuel costs by using public transportation or biking to work.
DIY car repairs
Although you might not want to do major repairs, think about taking care of basic repairs yourself. You can save money while learning a new skill!
Get creative when it comes to cutting your transportation costs.
Take care of your health
Healthcare is very expensive. But there are not too many ways to cut down on your healthcare insurance costs. However, a preventative approach about medical problems can help you save money and enjoy a higher quality of life.
A few ways to practice preventative healthcare include:
- Eating right
- Quit smoking
- Sleep enough
If you have healthcare insurance, then take advantage of what that plan offers. For example, if it includes annual doctor visits, then make time for a check-up. You could also consider opening a Health Savings Accounts (HSA).
Couponing can be your way to buy exactly what you want for less money. It is not too difficult to get started with couponing. Here are a few of the best places to get started (P.S these are affiliate links that help us grow!):
You’ll be able to earn cashback from your everyday purchases. Many of their offers allow for between 1% and 12% cashback. That can add up quickly! Try Rakuten today.
As you plan your grocery shopping, check out Ibotta for cashback deals in your area. Give Ibotta a try soon!
This app allows you to stay on budget while enjoying your shopping. You can earn cashback from over 5,000 stores. Plus, it will help you find coupons that apply to your purchase. Check it BeFrugal today.
The bottom line on how to save money on a low income
When it comes to how to save money on a low income it can be hard, but don’t allow it to stop you from reaching your income goals. Take a deep breath AND be honest with yourself about your current finances and your financial goals.
Find the motivation to move ahead with saving money for your future. Start by implemting one tip at a time. Consider taking your favourite of the above tip today. Once you do that, take action on the additional ways to save money on a low income as you make progress.