5 Ways To Save Money On A Low Income

Are you trying to save money on a low income?  Saving money on a low income probably feels like a big challenge.  Luckily, there are lots of creative ways to save money on a low income you just have to use your imagination.  Don’t let a low income stand between you and your savings goals!

It’s always important to have some amount of savings, no matter how much income you’re currently bringing in. Here are 5 tips that can help you save money.

1- Housing

For Renters

• Find a more affordable home to rent.
• Speak with your landlord concerning trading services to decrease your rent.
• Get an apartment using a home manager position.  Building owners frequently give property supervisors a free .place to live.

For Homeowners

• Maintain an eagle’s eye on utility expenses and cut wherever possible.  For example: Keep lights off, do not waste water, maintain the thermostat in the winter and in the summer time
• Rent a room in your home or in your garage to help cut down your home payments.
• Keep the house in good shape to prevent expensive repairs.  Do not do updates that are not required.

2 – Stay out of debt

Not only will getting in debt increase your monthly payments you make every month, it will impede on your financial freedom.  CreditCards.com reports the average rate of interest on credit cards which carry a balance is 13.93% as of 2020.

If you are carrying a balance on your credit card it is estimated that you are accruing an interest of  $728.82 annually from interest rates.  By not being in debt, you can put this money into a savings account.

3 – Entertainment

Below are a few methods to keep entertainment costs low and still have fun.

• Enjoy potluck dinners in your home rather than going to restaurants
• Have movie nights at home with your favorite movie snacks.
• Use free types of entertainment like hiking and biking.
• Search for free town activities like films and festivals.
• Establish a once-a-month entertainment activity and use groupon bargains or other vouchers to save money.

4 – Get Deals on Groceries

The average amount of money a family of four spends on groceries is approximately $250 per individual.  With a little preparation, it is possible to cut that amount in half.

There are lots of strategies to save money on groceries some are:

• Building a menu every week will help you stick to the menu items when you shop.
• Planning your weekly meal around what’s on sale at the grocery stores.
• Avoiding frivolous food buys like chips and soda (Bonus: you will improve your health by cutting out the junk food)
• Learning How to cook from scratch rather than purchasing pre-made or processed foods.

5 – Automated Savings

Automating savings is a great approach to save money, regardless of what your income is.  By having a certain amount deducted from your pay check into a retirement or savings account before you see it, you adjust to living on less and begin saving money.

Saving money on a very low income is possible.  You just have to get creative and learn to live without certain luxuries. By doing this you can start to save money with every paycheck. .