How to Save Money Fast on Low Income

Wise and prudent men always say to develop a savings habit. This practice will bring benefits for all regardless of men and women. Working women can save some of their earnings. The saved money can play a role as a protector against danger. Saving habits are always positive. We often hear that we have to spend money that we earn every month. There is no money in hand to save. Nothing great can be done with what is left. So it doesn’t become a saving every month. Whatever income we have now, we can save from it if we decide.

So, we may follow the following suggestions to save money fast on a low income.

Set goals

It is one of the best ways how to save money fast on low income. If the goal is fixed before starting any work, it is much easier to achieve it. Also, when we start saving, we should fix some goals. This goal can be divided into two parts – short-term and long-term. Short-term goals like travelling somewhere, buying a fridge/TV for home or any other useful work can be for a year or less. And the long-term goal can be what we want to do with the savings after five years or three years. We can say, for example, flat/plot booking, children’s higher education, hajj etc. When we set the target, we will get how much we have to deposit per month for this period. And we should keep saving every month with this goal in mind. But we should not be disappointed if the amount of savings is small at first. We must continue to save what we can. When the income increases in the future, the amount of savings should be increased.

Make a budget

Budgeting is the first step to saving money. In the beginning, we should make a list of the income and current expenses. Bank statements should also be printed if required. Then we should check out the entire list to see where and how much has been spent. Now all the expenses have to be listed separately. It means that the expenditure in any section is written in a specific category. So, you can follow the guide on how to save money fast on low income.

Reduce costs

The list should then be analyzed to determine where the maximum cost reductions are possible. If there is a need to save money quickly, then the unnecessary expenses, for example, shopping, dining, subscription, entertainment or buying gifts should be targeted at the beginning because if we want, it is possible to reduce these expenses. But, it is not easy to reduce the cost of house rent or daily kitchen market. So we should cut those unnecessary expenses and adjust them with house rent or daily expenses. Then the expenses will be reduced and saving money will also be easier.

Increase income

We can try to earn some extra money by doing extra work outside of the work we are doing now. If we are students, we can do freelancing or we can earn extra income by doing other work of our choice. If we are employed, we should try to do something out of the office. We can make the best use of the off days as well. We can save all the extra money that we get by doing extra work, like making money online free from home. It may be one of the best ways how to save money fast on low income.

Change in lifestyle habits

We know this step can be difficult, but it is very effective and fruitful way. We should avoid expensive habits like smoking, eating out, impulsive shopping or gambling. In such a way, we can save a lot of money.

A good savings account

We can check how profitable the current account is. If profitable, how much should also be verified. If the results are not satisfactory then we may open a better savings account after searching. Those who have savings accounts can be consulted in this regard. Or the information can be obtained directly by going to the bank.

Controlling purchases on offers

We should avoid shopping malls and shopping centres because these places tempt us to shop more. There are various discount advertisements in front of any brand outlet. Seeing these, we also buy unnecessary things. So if we avoid them it is possible to reduce the cost. Today many brands send promotional emails. These are tricks to lure people. So it is best to unsubscribe from these emails.

Pay off the debt

Debt is the biggest obstacle to saving. If there is debt, a part of the income is gone at the beginning. That’s why, if we have debt, we should pay it off first, and then we should pay attention to savings. So, you should follow it as it is one of the best ways how to save money fast on low income.

Account must be kept daily

When we know our daily expenses and write them down in a specific place, saving becomes easier. If we have an account, we have good control over the money. So we have to keep an account every day.

Understand the difference between wants and needs

Impetuous spending is a major obstacle to saving. In saving we have to first see what we need most and what needs might be met later. If we like something, we immediately decide to buy it. For example, we may have thought that it would be great to buy a large TV. But that’s when we have to ask ourselves, ‘How much do we earn?’ This hobby will remind you of how much money we’ll take from our savings. It will make us think whether we need to buy a big TV now. When we have enough money in hand, not to take too much from savings, then we can think about buying the TV.

Use cash instead of cards

More or less everyone has a debit or credit card these days. Cards should be avoided as much as possible while spending as it increases the mentality of consumption. Late payment of bills at the end of the month in credit card purchases causes various problems. But in the case of cash purchases, there are no such problems, and the wallet is properly accounted for while spending. Debit cards can be used if cash is not available. You can follow this as it may be one of the best ways how to save money fast on low income.

Follow the 50/30/20 rule

The 50/30/20 concept of US Senator Elizabeth Warren gains popularity. In his famous book ‘All Your Worth’ he talks about this rule about income management of personal life. If our income is $100, then $50 should be spent on personal needs. This need means rent, clothing, monthly expenses etc. Then we should spend $30 on what we want. It means $30 to be spent on things like buying something new, making a tour. Some of this amount should be kept for health. The remaining $20 should be saved. With $20, we can save money for emergencies, pay off debts, invest or try to achieve other financial goals. This way we can keep track of our monthly expenses. In other words, there is no room for improvement without calculation. If we can calculate our expenses according to this rule, we will find ways to save.

Invest wisely

It is better to invest as well as save. It creates the possibility of some extra money. But in that case we must invest wisely. Because, there are many companies these days that encourage investment with various temptations like doubling money in a short period of time. We should never invest in those places. A small amount should be invested in the beginning. And there should be a long-term plan. It may be a small business, stock market or bonds. But it should be done in small amounts, so that even if there is a loss, there is no big danger.

Reduce market costs

We should try to buy everything together we need to buy in the household every month, except kitchen items. Repeated purchases cost more. Apart from that, if there is a discount somewhere, we can try to buy things from there. However, while buying at a discount, we should not buy more than we need. In this way, it is possible to save some money from the monthly buying.

Give the gift as per affordability

We present gifts to close people on various festivals and occasions. We should make sure to make a budget before giving that gift. It is better to budget according to our income and it should be crossed in any way. If we can’t give it to everyone at once, we can divide it up. We should offer small gifts when needed.

Do not listen to people’s words

Criticism is often heard as economic or frugal due to spending money as per plan. But there is no shame in saving and having a controlled lifestyle. Because we can get immediate praise by spending unaccountably, we will not get someone to help us in time. So we should not listen to people and try to be frugal.

Pay credit card bills and loans on time

Paying off credit card bills and loans on time can save you from paying extra interest and help you save. We can arrange reminders and regularly update payment checklists to avoid the possibility of not making repayments on time. We can try to pay more than the minimum required amount. Otherwise, we may end up paying a lot more in interest. We must avoid taking unnecessary loans. We should always try to meet all the needs with our income.

Having home-cooked meals

We love to eat out often. We also buy food from outside at work, but it adds to the cost. Instead of those practices, home cooking will save money and will be healthier. Cooking at home will also reduce the cost of food. If there is food available in the office, we can try to eat it.

Keep loose change aside

We often hear that there is no money left after expenses. So saving does not happen. Instead of thinking about saving after spending, we should set aside a certain amount of money first and then we can spend it daily. Then we will see that we can save every month. If we can’t save in this way, then we can take another strategy. After coming home every day, we can keep the pocket money aside. Or we can keep aside the retail money that we will have after coming home from the weekly kitchen market or shopping. In this way, we can keep the money aside and deposit the money that accumulates at the end of the month in a separate account in the bank or we can open a DPS. As a result, after a certain period of time, the profit will be added to the savings and a good figure will be obtained.

Make a plan at the beginning of the month

Everyone does not get a salary on the 1st or 2nd day of the month. Many get a salary at the end of the first week and many get a salary in the middle of the month. We should make plans for the monthly accounts according to the financial statements. We should fix the date of the month for paying the rent of the house, and we should follow up regularly. We must avoid the irregular habit of renting a house. In the beginning, we can consider the allocation for the monthly grocery cost, children’s expenses, travel or health costs. Best of all, we should draft a simple plan at the beginning of the year to keep ourselves on track financially throughout the year.

When every day’s habit is savings

We can practise small habits every day. For example, we can walk ten minutes without taking any transport. Besides, if the office is near the residence, then we can walk every day. Many people buy clothes every month as it’s the era of fast fashion. But, we need to get into the habit of buying what we need considering the future in mind. We should avoid purchasing unnecessary luxury goods.

Last Words

Finally, there is no perfect way to save money. However, if we follow the above tips, we can save some money fast with our low income. We should all save money thinking about the future.