How to Save Money Fast on a Low Income
Last updated on January 3rd, 2025 at 01:41 am
Struggling to save on a tight budget? Explore effective ways to save money fast, even with a low income. Start your journey to financial freedom now!
Maximizing Savings with Limited Financial Resources
I’ve heard it over and over. I even used to believe it. “There’s just no way to save when you live on a low income.” Man, that could not be further from the truth. It certainly makes things more interesting, but it’s not impossible. Myself and many others out there not only save on a low income, but live comfortably.
What is a low income?
The average American income is around $81,000. That means, if you live less than the middle, you are considered low income. Now, don’t get me wrong, I know the cost of living has increased, but that means, our $60,000 gross income from my husband’s job, is well below the average.
Low-Income vs Poverty
While the two terms tend to be used simultaneously, they are not the same. For the average family of 4, the 2024 poverty level was $31,200. As you can see, there is a huge gap between the average income of $81,000 and the poverty level of $31,000. Families living in between the two are what we are referring to when we use the term “low-income”.
Give Yourself a Timeline
If you’re looking to save money quickly on a low income, it is doable, but deprivation is already likely present. Meaning, you likely already go without quite a few things living on a low income. In order to save quickly, you will have to give up more things, that may feel like small treats to you now.
Say you want to save $100 a month in 2025. You may only have to give up a few of these items every month for the year. Maybe you can go without them for 6 months to meet your goal. Decide where you want to be and how you want to get there. Remember, the key is not total deprivation. That makes it hard to meet our goals. The goal is to save quickly.
Quick & Easy Ways to Cut Costs on a Tight Budget
Here are some easy and quick ways to save money fast on a low income. Some you may already do and some you can never do. Pick a few and see how quickly the money starts stacking up! Remember to put the money towards your savings! It’s not there to spend.
Prepared Meals
Prepared or convenience meals can add up very quickly. In order to save money quickly, you will need to start cooking from scratch more. I know this can be challenging working and with a family, but remember, it’s for a set amount time. Maybe instead of prechopped veggies, you chop them yourself. Instead of frozen lasagna, you make it homemade. Small steps will help you meet goals.
Meal Plan
Meal planning is so underrated when it comes to keeping your grocery bill in check. If you’re not currently doing it, it is going to save you so much time and money in the long run!
>> How to Make a Meal Plan + Free Printables <<
Streaming Services
Most people don’t tend to have cable or satellite anymore. However, they tend to have a ton of streaming services. Maybe you only have a few and you have the lowest package. You’re still likely spending around $30 a month for these services. Try rotating your streaming services. Have just one at a time, watch everything on there for a month or two, then pause your subscription and move on to the next!
>> How to Save Money on Streaming Services in 2025 <<
Clothing
I’m not asking you to go without the essentials. Let’s be honest though, most of us have way more clothes and shoes than we need and don’t wear. Even the same can be said for our kids. Consider doing a no spend year when it comes to buying clothes.
>> How to Save Money on Kids Clothes <<
Haircuts
Haircuts are something that is seen as a necessity for more people. I totally get it is a profession and not just anyone can do it. However, if you really want to save money fast on a low income, consider cutting your hair at home. Again, only for a short period of time. I have cut my husband and three boys’ hair for years. Yes, the clippers were an investment, but for that many heads, it paid for itself in one or two uses.
I also use this tutorial to cut my own hair. My husband and I don’t color our hair, even if it’s turning gray at a rapid rate. Consider giving up the barber and salon visits while you meet your goal or maybe spacing them out longer. You will save SO much money!
Vacations
I know some people that live on a low income laugh at this one because they haven’t had a vacation in years. However, there are many that simply throw a trip on a credit card because they feel like they deserve it. Or maybe they take their families on several day trips a year to theme parks and museums. Again, we’re not about deprivation, but in order to save money on a low income, you have to get creative. Here’s my favorite free family activities.
Coffee Houses and Eating Out
Again, I know many on a low income will say these items just aren’t in there budget. However, it’s on the list for a reason. The people I know that eat out the most tend to be the ones that make the least. There could be several reasons for that, but this isn’t what I’m here to talk about. If you eat out several times a week, try eating out only once. Then, every other week. Next, monthly. Use eating out and coffee houses as treats. Maybe if you meet your goal every month, you can stop for a coffee or a date night out.
Downgrade Your Phone
The average phone bill per month was $141. Honestly, that is shocking to me. Now, it doesn’t say if that is for 1 person, 2 people, or a family of 4. Either way, it’s too much! Part of the high phone bills is paying for expensive phones you don’t need. What if you didn’t have a new phone every year…or five! That’s right, I said it. Some things are just not important if you want to save money fast on a low income.
Don’t be afraid to jump around to different carriers. My husband and I have kept our same phone numbers for 15+ years, yet I don’t think we’ve stayed with the same carrier for more than a year or two. Why? We are always looking for a better deal on our cell phone service. We buy used phones if need be or when we need an upgrade, we see who is having a good deal. I am rocking a free iPhone SE. I only had to stay with that carrier for a few months and then I jumped ship to someone cheaper. Although that carrier really wasn’t that much anyways.
A lot of smaller companies will offer crazy good deals. Usually once your promotion is up, you’re free to go somewhere else. Check out Mint Mobile down below. They’re offering $15 a month for the first 3 months!
Grab a Side Hustle
Now that we have reduced some costs, it is also helpful to gain some income. This may be seasonal work, work from home, picking up some overtime. Reducing your spending can only get you so far. If you’re able to pick up a side hustle, you will be able to meet your goals faster!
>> The Best Authentic Side Hustles for Moms <<
Want more ways to save money in 2025?
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The Best, Easy Ways to Cut Your Fuel Costs in 2025
