Saving money when you have a low income may seem quite tough initially, especially for freshers that have started earning just recently. Being a fresher myself, the one question that piques my mind most days is, “how to save money fast on a low income?”
As a fresher, you can’t expect organizations to pay you in big numbers; hence it is a constant struggle for a lot of us to save money.
But, the good news is, with the correct planning and attention to detail, it is actually possible to take a step towards saving money and thereby attaining your saving goals.
How To Save Money Fast On A Low Income?
Saving money in the fastest way possible to on a low income may seem tough, but not impossible to achieve.
You just need to be a little controlled and attentive, and you will be on the right track with your saving goals.
So let us now see how to save money fast on a low income:
Make A Budget
If you do not record how much funds you have or need to pay for your necessary expenses, you will not know how much to save each month.
Hence, making a budget and sticking to it will give you a good kickstart while determining how much you are left with after you have spent on all the expenses in each budgeting cycle. Based on that, you may decide how much you need to save.
While making a budget, make sure you include all the big monthly expenses like rent, food, gas, utilities, or car payment. You are also needed to allot funds under categories like clothing, household needs, and some funds for emergencies.
Just take a look at your bank statements or credit cards; that way, you can determine the average that you usually spend each month, and accordingly, you can estimate how much you require each month.
Lastly, note down the numbers that you are spending each month, and then decide which categories you need to cut down on the expenses.
Open A Savings Account
If you are saving money by hiding it someplace within your home where you can’t find it is one of the unsuccessful ideas to save money.
Take it from someone who’s done it and failed multiple times- the money that you hide is the fund that you first reach for when you have an urge to spend unnecessarily. Also, keeping a bunch of cash at home is not safe.
Instead, try keeping your funds in a Savings Account or a Savings Pod.
By doing this, you can actually put your hard-saved funds out of your sight, and therefore you won’t be tempted to spend it unnecessarily.
Drop Unnecessary Monthly Memberships
Now that you have mapped your budget, and not only do you know where and how you are spending each month, but you also have a trusted place to keep your savings, let us come to the hardest party- cutting down the expenses.
Ask yourself; do you really need a subscription to five different streaming platforms? You do not need Netflix, Prime, Hulu, Disney Plus, or any streaming platform altogether.
They are expensive and add unnecessary bills to your budget. Check for the subscription bills that are automatically charged to you every month, and cancel the ones that are useless.
When making a budget, you will come across certain “unavoidable” expenses which you cannot avoid. These include rent payments or car payments. These makeup a big portion of your budget.
But, if you take a deeper look at it, you can actually downsize these expenses by moving to a neighborhood that is less expensive or sharing your apartment. This way, you can cut down on the cost that you pay for rent.
Coming to your car payments, try to avoid using a car on a regular basis. Try to take public transport. If you can continue to use public transport for six months straight or not use the car, you will end up with a bigger chunk of money by the end of the month.
Save Money on Food
The cost of food is one of the most extensive variable expenses that you incur each month. This means food cost is the initial step that you must consider looking into if you are thinking about how to save money fast on a low income.
Try to avoid eating out more than you need. Home-cooked food is not only healthy but will also help you save huge numbers each month.
Save Money on Utilities
It is pretty important to make little changes in your daily routine if you are paying for gas, electricity, or water. This way, you will have a little more to put in your Savings account by the end of the month.
Here are some ways in which you can save some extra bucks on utilities:
- Shorten your showers and try to avoid hot water as much as you can.
- Use draft stoppers for doors
- Unplug electric appliances when they are not being used.
- Program the thermostat
- Use power-efficient light bulbs
Commit to Buying Nothing New
Try to commit to yourself not to make any new purchases for a month straight. You will surely be spending on your necessities like gas or food, but the commitment will mean you wouldn’t be spending on new clothes or cosmetics or any items as such.
We often do not realize how subconsciously we spend on new items each month, but they do add to a big part of our income.
Pay Your Monthly Bills Automatically
For every bill that you pay monthly, try to schedule automatic payments that are directly paid through your bank or credit cards. This way, you can avoid late fees if, in any case, you fail to pay the bills on time.
Look for Extra Gig Work
If you are fond of your job despite the low pay, or cannot get a better-paying job, try to join the gig economy.
You may participate in multiple options, which will help you step up your game while saving money.
The Bottom Line
If you are confused about how to save money fast on a low income, these are the best ways that you may refer to.
Speaking from my personal experience, these are some of the best ways that you can tryout.
The path of saving money may seem tough, but it is not unachievable. Just be a little attentive and control yourself, and you will be good to go.
I hope this article was helpful and solved a lot of your doubts. If you are still left with any confusion, feel free to drop a comment below, and I will be happy to help.