10 Ways To Save More Money With Low Income

When you’re living on a small income, it can be especially hard to save money for things like an emergency fund, college, retirement, cars, or anything else. We all have our lean times financially, but even in those lean times you can still find ways to save money for the future needs of you and your family, such as college and retirement. I truly believe that even if you have a low income, you can still save money if you’re diligent about the process.

# Build A Budget that works for you

Budgeting might sound like more trouble than its worth, but it can help you to build your savings. Unless you have a plan for your money, it can be extremely easy to spend it. With a budget, you can include your savings goals. Instead of aimlessly saving what’s leftover each month, you can meet your savings goals through careful budgeting.

If you aren’t sure how to build a budget, then consider taking our budgeting course. It will teach you how to create a budget that works for you.

# Evaluate Housing Costs

Many times it’s difficult to save money because housing costs take a huge chunk of the family budget. In general, it’s best to keep housing costs to 25% of your take home pay or less. If you’re single, you can even take in a roommate or two and charge them rent to save money on housing costs. And the saved money you can put straight into investments.

# Plan Your Shopping

Never spend money on a whim or just because you ‘feel like it.’ The best way to spend a limited income is to plan your shopping ahead of time using a written budget every single month. That way, you spend your money on paper before you spend it in real life. When it comes time to buy what you need, you will already have a plan in place and you won’t overspend because you only have so much allotted for each category.

# Buy Used Stuff

Buy everything you can used, such as used cars, used electronics, used furniture, clothing, etc. There are incredible deals out there for most anything you want or need, you just have to know where to look.

# Don’t Use Credit Cards

Studies have shown that you spend 12% more on average because using plastic is such a smooth and friction less way to spend money. Your best bet is to go cash only and use cash in an envelope system along with your monthly budget.

# Free or Affordable entertainment

One area of your budget that is entirely variable is your entertainment budget. You have the power to overspend in a big way with entertainment. On the flip side, some frugal fun can allow you to pad your savings without feeling deprived. Here are a few 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.

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.

# Cash Envelope Method

If you struggle to keep track of your spending, then the cash envelope method could be a great option. The cash envelopes could help you realize how much you are spending. It might open your eyes to your harmful spending habits. Once you have a better understanding of what you like to spend money on, then you can work on adjusting those habits.

# Downgrade your technology

The latest smartphone is a luxury, not a necessity. You do not necessarily need the fastest PC or laptop, especially for essential tasks. Whilst a large flat-screen TV is a fantastic addition to the home, it is not something that you absolutely need. If you are serious about saving money on a low income, downgrading your technology can keep costs down. Think how much you might save if you had an old flip phone with no need for an inclusive data contract. You can also sell your high-value gadgets, putting the money that you receive towards clearing debt or building your savings.

# Walk more frequently

Not taking into account the health benefits of taking more exercise, walking instead of taking a car will save you money. Small local trips in your car could be costing 2,000 Rs. Long drives are obviously harder to avoid, but it is all too easy to get into the driving seat for a visit to the nearest shop. Before you get into your car, consider if the journey you are making is one you could make on foot (or perhaps on your bike, if you have one). Walking more often and starting the engine a little less frequently, could give you a good sum of money to set aside at the end of each month.

# Sweat The Small Stuff

Take your lunch to work, plan to do your errands all at once to save gas instead of making multiple trips. Save your change and cash it into an investment account periodically. You will be surprised how much you can save when you get creative.