How to Save Money Fast on a Low Income

Saving money on a low income can be overwhelming, but it’s not impossible. Benzinga wants to help. While you’ll need a larger portion of your income for basic expenses, you can save as long as you’ve got cash flow. It will take determination and a bit of creativity, but that special vacation, a home down payment or an emergency fund can be within reach. Whole communities are dedicated to saving more. Read on for 20 ideas for how to save money fast on a low income to get started. 

Top 20 Ways to Save Money Fast on a Low Income in 2023

Saving money on a low income can be challenging, but it is possible with some creativity and discipline. Here’s how to get started:

1. Create a Budget

Saving money on a low income starts with a budget. When you look at all your income sources with expenses, creating a realistic and balanced total budget is easier. First, look at all income sources, fixed and variable expenses. 

Fixed expenses can include rental payments or housing costs and recurring fixed utility payments like phone or internet plans. Variable expenses are everything else, such as food to transportation costs, as they can vary from month to month. Knowing the average you pay on fixed and variable expenses can help create an estimate of total monthly expenses.

Then, look at both essential living expenses and discretionary expenses. Essential expenses include food, housing, transportation, utilities, insurance, medical expenses and taxes. Discretionary expenses are anything else you choose to spend money on, from movies, dining out and entertainment to new clothing, cosmetics or travel. This is where you could (potentially) cut back. You can also check low-income budgets online to get an idea of realistic targets. 

After balancing income with expenses, you’ll have an idea of any surplus you could realistically save each month. Consider gradually increasing that amount over time. 

It’s also helpful to create a target monthly spending amount by categories, such as food, transportation, housing, utilities, medicine, education expenses, entertainment, clothing, business supplies and any other spending categories. Dividing your budget into categories can help you get a handle on specific spending areas and highlight where you could cut back.

You can track your budget via a budgeting app or spreadsheet. Apps allow you to link all your credit cards and bank accounts to automatically calculate cash flow. You’ll also be able to divide expenses by categories.

If you prefer a simpler tracking method, you could keep a spreadsheet of all expenses. With a spreadsheet, you’ll need to enter each expense manually. Both apps and spreadsheets have pros and cons. An app makes budget tracking almost effortless, while the spreadsheet helps you check each individual expenditure. 

2. Track Your Expenses

Consider also keeping a daily expense journal to note expenses daily and then transferring it to a spreadsheet. A budgeting app can also help you to record all expenditures. 

When you record expenses, categorize expenses to identify overspending or where you need to rebalance the budget. Most budgeting apps automatically categorize expenses, although you may need to reassign expenses to train the app to track accurately. Common expense categories include:

• Mortgage or rent payments
• Other housing maintenance costs
• Utilities include electricity, water, gas and telephone
• Groceries
• Medicine and medical expenses
• Insurance (health, home, etc.)
• Transportation (car payments, gas, repairs, maintenance, public transportation costs)
• Clothing
• Entertainment (movies, streaming services, concert or theater tickets, etc.)
• Dining out (take-out coffee as well as restaurant meals)
• Travel savings

You can consider adding an expense category for savings to ensure you don’t forget to save. 

3. Meal Planning

Meal planning is how many families avoid impulse grocery purchases or last-minute takeout runs. Meal planning can help you make lower-cost, delicious home-cooked meals to reduce your weekly grocery budget. 

Consider meals based on beans, whole grains, pasta, low-cost vegetables or eggs while reducing more costly ingredients or luxury items in your overall grocery budget. 

Considering family preferences and dietary needs is essential to make meal plans realistic. You don’t need to eliminate things you love. Instead, balance high-cost or prep-intensive meals with simpler options. 

You can choose only to plan dinners or plan three meals and snacks, as needed, for your family. Create a shopping list based on planned meals and what you already have at home to avoid unnecessary purchases.

4. Cook at Home

The cost savings of preparing meals at home compared to dining out are significant, even if you’re getting fast food. The average restaurant meal costs $20 to $30 per person, while even fast food often adds up to $7 to $15 per person. In contrast, home-cooked meals typically cost between $1 and $6 per person. 

If you love exotic cuisines or the diversity that restaurant meals provide, look for simple and budget-friendly recipes from different cuisines so that you feel inspired to cook more frequently. Or make a list of reliable favorites, and then try one new recipe each week. 

5. Batch Cooking

Batch cooking can save both time and money. For example, you can make ready meals like you’d find at gourmet salad or sandwich shops. Consider cooking batches of beans, rice or other grains, roasting vegetables and chopping raw vegetables. You can also prepare several casseroles or main dishes and freeze them so they’re ready to be reheated when you need them.

You can store cooked beans, grains or vegetables in sealed storage containers or zippered plastic bags in the fridge for up to five days. Cooked meats can last up to three days. You can freeze anything that you’ll need after that.

Many foods lend themselves to batch cooking, from soups, stews and chilis to enchiladas, casseroles or baked pasta dishes. Be prepared to store everything in individual containers and mark the date they were prepared to ensure that meals remain fresh. With some practice, batch cooking can mean you have meals you love ready in minutes.

6. Cut Unnecessary Subscriptions

Saving money on a low income often involves cutting unnecessary extras that don’t add value to your life. Many American families spend more than $50 per month on subscriptions. Think of TV or streaming service subscriptions, magazine and newspaper subscriptions, in-app subscriptions and gaming subscriptions. Look at what you actually use or need. Consider pausing all subscriptions for a month and only resubscribing to those you missed.

Explore free alternatives for entertainment or content consumption, including free subscription trials. Many phone providers bundle certain subscription services free with your phone.

7. Use Public Transportation or Carpool

Using public transportation or carpooling can save on costs while helping the environment. Between rising gas prices and vehicle maintenance costs, planning your routes and travel schedules for maximum savings through carpooling or public transport could lead to savings of $100 or more per month.

8. Reduce Energy Consumption

Reducing energy consumption could lead to monthly savings of $10 to $50. Consider turning off lights and unplugging appliances when not in use.

Reducing air conditioning and heating use will lead to the most significant electricity savings. Use programmable thermostats and set them a degree or two higher in summer and lower in winter. Energy-efficient bulbs can also help to reduce utility bills.

9. Thrift Shopping

Shopping at thrift stores can be a fun and exciting way to find unique items at lower prices. Explore thrift stores for clothing, furniture and household goods like dishes, mugs, vases and decor. Research local thrift shops and the quality of items they carry to find ones that regularly have the brands, styles or items you’re looking for. 

10. DIY Repairs

With YouTube and the internet, you can usually find someone online to teach you how to do basic do-it-yourself (DIY) repairs for common household issues. Whether you’ve got a leak under the link, a running toilet or want to refinish a dresser, there are DIY resources, including videos and tutorials, to help. Compared to hiring a professional service for these simple repairs, you could save $50 to $150 per repair. 

If you’re new to DIY, consider swapping services with a friend who has more experience and then helping them with a project or area where you have expertise.

11. Negotiate Bills

Don’t be afraid to ask nicely and negotiate with service providers. When you need to hire someone or purchase a product or service, be sure to research competitor prices and bring them up during negotiations.

Other negotiation tips:

• Shop around to get the lowest price or quote. The best tactic is to choose the best provider ahead of time.
• If you already have a provider and want a lower price, ask nicely and mention what others charge.
• Suggest added services or items you don’t need that could potentially be left off to cut costs.
• Negotiate before the service is offered. It’s unfair to the service provider after the job is done.  

12. Cut Down on Vices

Vices like smoking or excessive drinking can majorly impact your financial health, costing hundreds of dollars each month. Consider replacing these habits with healthier alternatives like exercise, playing music or meditation. Joining free support groups to keep you accountable for your changes can make cutting vices easier in the long term. 

Consider groups like Alcoholics Anonymous, Overeaters Anonymous or online support groups. You can also speak with your doctor about support and lifestyle changes that can make giving up vices easier.

13. Sell Unneeded Items

Most American families have hundreds of dollars worth of unwanted or unused items, including clothing, small appliances, sports equipment and furniture. Declutter room by room and identify items for sale. Then list them on online marketplaces like Facebook Marketplace, eBay or Craigslist. You can also hold a local garage sale and then give any remaining items to a thrift shop for credit. 

14. Part-Time Gig

There’s only so much you can reduce expenses. If you’re struggling to maintain a budget with a low income, consider getting a part-time job or a side hustle suitable for your skills and schedule. It’s important to balance existing work and family commitments with a new job.

Possible part-time jobs include:

• Online tutor
• Uber or delivery driver
• Work in a local store or cafe
• Selling items on eBay or Etsy
• Lawn care or home maintenance service
• Business consultant
• Health, fitness or wellness coach
• Freelance writer or editor
• Computer programmer
• Freelance web design or graphic design
• Photographer
• Blogger or vlogger

15. Community Exchange

Community exchange events can be a fun and interesting way to share items, experiences or expertise. Consider community swapping events or online groups to exchange items like clothing, furniture or appliances. 

Many communities now offer a repair swap, where community members help others to repair appliances, furniture, machinery, plumbing or other items for free. You’ll want to participate actively and contribute to get the most out of these communities.

16. Grow Your Own Food

With even a few container boxes, you could grow a significant portion of the fresh vegetables your family consumes. Consider a pot for herbs like basil, thyme, rosemary and oregano that can add flavor to many foods and don’t take up much space. You could grow lettuce, tomatoes, herbs and other greens even in limited spaces like balconies or windowsills.

Growing produce is a cost-saving strategy, and it’s satisfying to grow your own food. And the taste is exceptional. If you have children, it’s a wonderful way to connect them to the earth and the food they eat and perhaps inspire more adventurous eating in the process. 

17. DIY Cleaning Products

DIY cleaning products are cost-effective and simple to make. For an all-purpose cleaner, simply mix ¼ cup of rubbing alcohol with ¾ cup of water and a small squirt of dish soap in a spray bottle. You can add 10 drops of your favorite essential oil — lemon, orange, mint or lavender work well — for a simple and inexpensive cleaner.

You can also easily search online for natural cleaners made with white vinegar, baking soda and other common, cheap ingredients. Not only are these DIY products cheaper, they’re also nontoxic, so they’re better for your family and pets. Homemade cleaning products are an eco-friendly and cost-effective cleaning solution to help your budget and the planet.

18. Stay in for Entertainment

Entertainment doesn’t have to be expensive. Host a potluck, a movie night with homemade popcorn or a pool party at the local pool — just bring your friends and floaties.

Other fun and inexpensive entertainment ideas include:

• Neighborhood or friend game nights
• DIY crafts or pottery painting (you can buy inexpensive pottery online)
• A backyard Slip N Slide party
• A weekly potluck with friends
• A cookie swap or baking party

Entertainment isn’t about the expense, it’s about the joy of spending quality time with loved ones, which you can easily do at home.

19. Use Cashback and Coupons

Popular cashback apps and websites like RetailMeNot, Ibotta and Coupons.com offer ways to earn money on purchases. Capital One also offers an automatic coupon extension for clients. Before making purchases, make a habit of searching for online and in-store coupons to save more.

20. Avoid Impulse Buys

Impulse purchases are the bane of every budget-conscious shopper, but it happens to everyone. To avoid impulsive shopping, try out different strategies to find what works best for you. First, it’s important to distinguish wants from needs and then set clear savings goals. Consider rewarding yourself for each savings landmark — like each $100 saved — to increase motivation for savings.

 Common strategies to avoid impulse purchases are:

• Wait 24 hours before purchasing nonessential items.
• Save until the end of the month for any nonessential purchases.
• Wait a week to see whether you still want the item.
• Take a photo of the item and shop for it used online or try to find it on sale.

Saving Money on a Low Income

Beyond the strategies above, saving money on a low income requires a lifestyle commitment and dedication. But it is possible. Consider also renting out a room in your home, moving to a less expensive property and joining online savings groups for support. 

As you start building a personalized saving strategy, saving money on a low income can actually be fun. And as you see your savings grow, the freedom it brings is an extra reward. Get started, gather with like-minded friends and see what other opportunities you find.

Frequently Asked Questions