Saving money when you’re on a low income can feel like a battle against all odds. The bills pile up, unexpected expenses pop up out of nowhere, and no matter how much you save, it never seems enough to build up any real savings. I know exactly how that feels.
A few years ago, I was in that exact situation—scraping by every month, feeling like I was just one step away from a financial disaster.
But here’s the twist: I turned it around. I managed to save money even when my income wasn’t as high as I would’ve liked it to be. Now, I’m here to share how I did it and how you can do it too.
Over the years, I’ve learned that saving money isn’t just about earning more. It’s about making deliberate decisions, thinking strategically, and using a little creativity to make the most of what you already have.
It is absolutely possible to save money on a low income—and if I can do it, so can you. Here’s how I did it, and how you can do it too.
1. Know the Difference Between Needs and Wants
Reevaluating my mindset about money was one of the first things I had to do when I started saving. It wasn’t just about what I could afford to spend—it was about what I truly needed.
Most of us struggle to distinguish between the “needs” and “wants” in life, especially in a world that constantly tells us we deserve more, that we should have the latest and greatest.
At first, I struggled with this. I assumed I needed the newest phone, the coolest clothes, and all those little luxuries that made me feel good at any given moment.
But when I started asking myself tough questions like, “Do I really need this?” and “Will this actually add value to my life?” I realized that most of what I was spending on were simply wants, not needs.
Take your morning coffee run, for example. If you’re buying coffee every day, that’s around $3-$5 a day, which adds up to $100 or more every month.
But by simply brewing my own coffee at home—or skipping it altogether some days—I saved a lot of money. These seemingly small decisions really count in the long run.
Related: 9 Things to Stop Buying to Save Money
2. Master Meal Planning and Meal Prepping
One of the key reasons I was able to save money so quickly was when I took charge of my food budget. Eating out was one of my biggest expenses, and I knew I had to reduce it. I found the solution in meal planning and meal prepping.
Meal prepping isn’t just a catchy buzzword—it’s a practical and efficient way to drive down your food costs. I started preparing meals in bulk on Sundays, portioning them out for the week ahead.
Instead of buying expensive ready-made meals or ordering takeout, I had home-cooked meals ready to go. This not only saved me money but also gave me more control over the cost per meal.
For example, I began buying staple foods in bulk. Rice, beans, pasta—these are inexpensive and can be used to make filling, nutritious meals. The real game-changer was when I learned to buy frozen vegetables instead of fresh ones.
They last longer, they’re often cheaper, and nutritionally, they’re pretty much the same. I also started buying frozen chicken, which was about 50% cheaper than fresh meat.
Meal planning also helped me avoid impulse purchases at the grocery store. I made a shopping list based on my planned meals and stuck to it—no extra snacks or unnecessary items.
Related: How Much to Save for Retirement
3. Start Thrifting
Thrift shopping is a well-known money-saving strategy, but I did it a little differently. I didn’t just look for cheap clothes—I looked for things that could serve other purposes. Thrift stores aren’t just for secondhand clothes; they often carry furniture, electronics, books, and kitchenware, all at a fraction of the price you’d pay for new items.
I started browsing local thrift stores for things I could repurpose or resell for a profit. For instance, I found lightly used furniture that I could clean and restore. I made it a habit to visit yard sales as well.
One time, I found an old wooden coffee table for just $10. After some sanding and painting, I turned it into a piece I could sell for $40. That $30 profit went straight into my savings account.
You’d be surprised at what you can find at thrift stores. If you’re resourceful and willing to put in a little effort, there are treasures waiting for you.
Related: Why I Stopped Thrifting
4. Learn The Power of Saying “No” (Without Guilt)
Saying “no” was one of the hardest lessons I had to learn. I felt guilty turning down invitations to birthday parties, dinners, and nights out—things I couldn’t really afford. But I realized that every time I said “yes” to something I couldn’t afford, I was saying “no” to my long-term financial security.
Saying no doesn’t mean you have to turn down every invite or social activity—it means putting your financial goals first and being selective with where your time and money go. I started looking for free or low-cost alternatives to social activities. Instead of dining out, I hosted potlucks with friends. Instead of spending money on a night out, we went hiking or simply hung out at home.
It felt strange at first, but once I realized how much I could save by being selective, it became easier to say no. And saying “no” doesn’t make you a bad person—it makes you someone who’s putting their long-term goals first. That’s something to be proud of.
Related; How To Save Money On Groceries
5. Learn How to Save Even When Your Income is Small
You might think automating your savings is a luxury, but it’s one of the best things I did to build my savings without even thinking about it.
Here’s what I did: I set up an automatic transfer from my checking account to my savings account every payday, even when my income was low. At first, it was just $10, but as time went on, I gradually increased the amount.
The great thing about automation is that you don’t miss the money because it never touches your main account. You can increase the amount as your income grows, but the key is to start small. Even a little bit adds up over time.
I also set up automatic payments for my bills, which saved me from late fees and gave me peace of mind. These small, consistent actions allowed me to build my savings without stressing about it.
Related: $5 Budget Challenge: How I Saved $10,000 in Just 3 Months
6. Cash in on Bartering Power and Free Goods
You don’t always need money to get what you need. One of the most unexpected ways I saved money was by using the power of bartering and taking advantage of free goods. I didn’t have much money to offer in exchange, but I could offer my time, skills, or services.
For example, I helped a friend with graphic design for her business in exchange for clothes. She was decluttering and I needed clothes, but I couldn’t afford to buy them. I saved hundreds of dollars this way.
You’d be surprised at what you can get just by offering your skills or services. Look for bartering opportunities in your community or on platforms like Facebook Marketplace or Freecycle.
7. Reorganize and Sell What You Don’t Need
Over the years, I accumulated a lot of stuff—clothes, electronics, furniture, books—you name it. Selling items you no longer need is an excellent way to make some extra cash and declutter your life at the same time. I made it a habit to sell items regularly, using the money to build my savings.
You don’t need to host a garage sale to do this. Platforms like eBay, Facebook Marketplace, and Poshmark allow you to sell items quickly and easily. For example, I sold an old camera for $150 and put that money straight into my savings account. Each sale was an opportunity to save, and it helped me build my emergency fund faster than I expected.
Related; 8 Creative Ways to Make Money Selling Your Stuff
8. The “No-Spend” Challenge
The “No-Spend” challenge is exactly what it sounds like—setting aside a period of time where you don’t spend any money except for essentials. I did a “No-Spend Week” once a month. At first, it was hard, but I quickly realized that I could live with a lot less than I thought.
During the no-spend week, I didn’t buy anything I didn’t absolutely need. No takeout, no new clothes, no unnecessary purchases. I focused on free activities like walking, reading, or cooking at home. At the end of the week, I was amazed at how much I had saved.
This challenge helped me rethink my spending habits, and over time, I found myself making more mindful decisions about where my money went.
9. Adopt a Minimalist Mentality
Eventually, I had to accept that I didn’t need a lot to be happy. I embraced a minimalist mindset, letting go of the desire for things that didn’t add value to my life. I stopped buying things simply for the sake of having them and started focusing on the things that truly mattered.
I no longer felt the need to keep up with the latest trends or succumb to flashy ads telling me what I “needed.” I shifted my focus to what I truly needed, and in doing so, I found that I didn’t miss the excess. In fact, I felt freer without all the stuff.
Final Thoughts
Saving money on a low income doesn’t require drastic lifestyle changes or living without everything you enjoy. It’s about making intentional decisions, being resourceful, and sticking to small actions that add up over time.
I started from nothing, but today, I have savings, investments, and a better financial future ahead of me. You can do the same. Start small, set goals, and stay consistent. You’ll be amazed at what you can achieve.
What strategies have worked for you? How do you save money on a low income? Share in the comments—I’d love to hear from you!
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