How To Save Money Fast On a Low Income: Making Ends Meet

Saving money can seem like a challenge, yet alone doing it on a low income. That might seem impossible. When your monthly bills keep piling up, it can be easy to feel overwhelmed and start to worry about how you will manage to cover all your expenses and have money left over to save.

But there is hope! With a few simple lifestyle changes, you can easily put away a few extra dollars each month. Life is a lot less stressful when you can live the life you want without having to worry about your finances. In this blog post, we’ll share 10 ways on how to save money fast on a low income.

1. Create a Budget

No matter how much money you make, setting a budget is a game-changer when it comes to saving money. A personal budget will allow you to keep track of where every hard earned penny is going. Too many times we spend money carelessly and don’t realize exactly how much we spend. One solution is to list all of your expenses and categorize them into necessary and unnecessary things. Rent, groceries, gas, car payments are just a few categories that should be included in a budget.

Whether you want to write it down in a notebook or use a budgeting app, making a budget is sure to help you save money fast and improve your finances. An app like Hiatus allows you to create custom budgets based on your spending habits, which will help you avoid those common budgeting mistakes we all fall victim to. Once you have a clear understanding of where your money is going, you can adjust your expenses according to your priorities.

2. Open a Savings Account

Whether it’s a high-yield savings account or one of its alternatives, opening a savings account can help you get money fast even with a limited income. You won’t be tempted to spend the money since it won’t be in plain sight in your house and the money in a savings account will help your savings grow quicker.

A traditional savings account averages around a 0.42% APY (annual percentage yield), while a high-yield savings account can earn 5%-7%. Money in a savings account is protected by the government and it’ll always be accessible in the event of an emergency.

Saving money can seem like a challenge, yet alone doing it on a low income. That might seem impossible. When your monthly bills keep piling up, it can be easy to feel overwhelmed and start to worry about how you will manage to cover all your expenses and have money left over to save.

But there is hope! With a few simple lifestyle changes, you can easily put away a few extra dollars each month. Life is a lot less stressful when you can live the life you want without having to worry about your finances. In this blog post, we’ll share 10 ways on how to save money fast on a low income.

1. Create a Budget

No matter how much money you make, setting a budget is a game-changer when it comes to saving money. A personal budget will allow you to keep track of where every hard earned penny is going. Too many times we spend money carelessly and don’t realize exactly how much we spend. One solution is to list all of your expenses and categorize them into necessary and unnecessary things. Rent, groceries, gas, car payments are just a few categories that should be included in a budget.

Whether you want to write it down in a notebook or use a budgeting app, making a budget is sure to help you save money fast and improve your finances. An app like Hiatus allows you to create custom budgets based on your spending habits, which will help you avoid those common budgeting mistakes we all fall victim to. Once you have a clear understanding of where your money is going, you can adjust your expenses according to your priorities.

2. Open a Savings Account

Whether it’s a high-yield savings account or one of its alternatives, opening a savings account can help you get money fast even with a limited income. You won’t be tempted to spend the money since it won’t be in plain sight in your house and the money in a savings account will help your savings grow quicker.

A traditional savings account averages around a 0.42% APY (annual percentage yield), while a high-yield savings account can earn 5%-7%. Money in a savings account is protected by the government and it’ll always be accessible in the event of an emergency.

3. Save Money on Bills and Utilities

If you need money now, reducing your monthly bills will help you save money. Take a look at your utility bills and see if you can make any changes to reduce your costs. For example, you might be able to switch to a cheaper phone or internet plan. Hiatus will display all of your monthly bills in its dashboard and will negotiate them on your behalf to get you better rates.

Lowering your thermostat and taking shorter and colder showers will help you save on your water bill. If you’re somebody who goes to the gym, why not shower there right after your workout instead of doing that at home? Every little bit helps, and even small reductions can add up to big savings over time.

4. Cancel Unwanted Monthly Subscriptions

With a clearer view of your budget and knowing where your money is going, you should start to eliminate any unnecessary expenses. A great way to do so is to get rid of those unwanted monthly subscriptions. Subscribing to numerous streaming services might seem like a good idea to watch all your favorite shows but your bank account will say otherwise. Instead, choose your preferred streaming service and cancel the rest. The Hiatus app can help with this and cancel those subscriptions effortlessly. With just a few taps, you’ll begin to put money back into your pockets.

3. Save Money on Bills and Utilities

If you need money now, reducing your monthly bills will help you save money. Take a look at your utility bills and see if you can make any changes to reduce your costs. For example, you might be able to switch to a cheaper phone or internet plan. Hiatus will display all of your monthly bills in its dashboard and will negotiate them on your behalf to get you better rates.

Lowering your thermostat and taking shorter and colder showers will help you save on your water bill. If you’re somebody who goes to the gym, why not shower there right after your workout instead of doing that at home? Every little bit helps, and even small reductions can add up to big savings over time.

4. Cancel Unwanted Monthly Subscriptions

With a clearer view of your budget and knowing where your money is going, you should start to eliminate any unnecessary expenses. A great way to do so is to get rid of those unwanted monthly subscriptions. Subscribing to numerous streaming services might seem like a good idea to watch all your favorite shows but your bank account will say otherwise. Instead, choose your preferred streaming service and cancel the rest. The Hiatus app can help with this and cancel those subscriptions effortlessly. With just a few taps, you’ll begin to put money back into your pockets.

5. Always Look For Deals

There are many ways to take advantage of discounts when living on a tight budget, including using coupons. Look for coupons online or in-store, and use them when purchasing things you need. Additionally, take advantage of sales to save money on clothing, household goods, and electronics. Check out different stores to compare prices and get the best deals. However, make sure the items you're buying are essential, and not just impulse buys. Consider joining local groups that offer discounted rates on services such as food, entertainment, and transportation.

6. Get A Side Job

If you’ve cut spending and you still feel like you’re not progressing, consider getting a side job. It’s the easiest way to increase your income and put more into savings. Freelance or part-time jobs that could boost your income are driving for Uber or Lyft, online tutoring, or even selling items online. Flexible options such as dog walking or cleaning houses will let you work your side hustle into your existing schedule.

7. Spend Less Money On Food

One of those expenses that you can't hide from but you sure can stay on top of. People tend to downplay how much money they spend on food. Let’s face it, three meals a day can add up, especially if you’re one who often dines out and likes to socialize.

Make a conscious effort to see how much money you’re spending on food monthly. Both preparing your meals and making coffee at home are great ways to save money fast on a low income. You’d be surprised but taking these steps can help slice the cost by half or even more!

8. Find Cheaper Ways To Travel

Getting from point A to point B can be a huge expense. Instead of driving your car everywhere you go, invest in a bike or think about walking to places you can. This will cut down on gas costs and you can get in some exercise as well, two birds with one stone. Using public transportation is another cost-effective option instead of driving everywhere. If you happen to live closeby to a coworker, you can carpool with them to save both yourselves money on gas. Remember, the small sacrifices you make now will pay off in the long run.

9. Invest In Pre-Tax Savings Options

Take advantage of automatic contributions to boost your retirement savings. By setting up regular contributions to your employer-sponsored retirement plan, like a 401(k), you can use pre-tax dollars to fund your future. Not only will this help lower your taxable income but may also provide a valuable employer match program. Some employers will match your 401(k) contributions, effectively giving you free money towards your retirement goals. Keep in mind that most employer-match programs have a minimum contribution requirement to be eligible.

10. Unplug Appliances

Energy bills are a major expense for many households. Cutting down on energy bills is a smart way to save. Don’t just switch off the lights or appliances when you’re not using them, but instead unplug them. Even if they’re off, they will still continue to draw power. You can also replace incandescent bulbs with energy-efficient LED Light bulbs. Using energy-efficient appliances like washing machines or fridges will also help lower your energy bill.

5. Always Look For Deals

There are many ways to take advantage of discounts when living on a tight budget, including using coupons. Look for coupons online or in-store, and use them when purchasing things you need. Additionally, take advantage of sales to save money on clothing, household goods, and electronics. Check out different stores to compare prices and get the best deals. However, make sure the items you're buying are essential, and not just impulse buys. Consider joining local groups that offer discounted rates on services such as food, entertainment, and transportation.

6. Get A Side Job

If you’ve cut spending and you still feel like you’re not progressing, consider getting a side job. It’s the easiest way to increase your income and put more into savings. Freelance or part-time jobs that could boost your income are driving for Uber or Lyft, online tutoring, or even selling items online. Flexible options such as dog walking or cleaning houses will let you work your side hustle into your existing schedule.

7. Spend Less Money On Food

One of those expenses that you can't hide from but you sure can stay on top of. People tend to downplay how much money they spend on food. Let’s face it, three meals a day can add up, especially if you’re one who often dines out and likes to socialize.

Make a conscious effort to see how much money you’re spending on food monthly. Both preparing your meals and making coffee at home are great ways to save money fast on a low income. You’d be surprised but taking these steps can help slice the cost by half or even more!

8. Find Cheaper Ways To Travel

Getting from point A to point B can be a huge expense. Instead of driving your car everywhere you go, invest in a bike or think about walking to places you can. This will cut down on gas costs and you can get in some exercise as well, two birds with one stone. Using public transportation is another cost-effective option instead of driving everywhere. If you happen to live closeby to a coworker, you can carpool with them to save both yourselves money on gas. Remember, the small sacrifices you make now will pay off in the long run.

9. Invest In Pre-Tax Savings Options

Take advantage of automatic contributions to boost your retirement savings. By setting up regular contributions to your employer-sponsored retirement plan, like a 401(k), you can use pre-tax dollars to fund your future. Not only will this help lower your taxable income but may also provide a valuable employer match program. Some employers will match your 401(k) contributions, effectively giving you free money towards your retirement goals. Keep in mind that most employer-match programs have a minimum contribution requirement to be eligible.

10. Unplug Appliances

Energy bills are a major expense for many households. Cutting down on energy bills is a smart way to save. Don’t just switch off the lights or appliances when you’re not using them, but instead unplug them. Even if they’re off, they will still continue to draw power. You can also replace incandescent bulbs with energy-efficient LED Light bulbs. Using energy-efficient appliances like washing machines or fridges will also help lower your energy bill.