Can You Save Money on a Low Income?



The following is a guest post from Mari Bunal, COO of, a blog that helps educate people in making informed-decisions on taking out loans and becoming responsible borrowers.


save money low incomeIf you’re living on a limited income, saving money may seem pretty much impossible.  But it’s actually not the case for many people. In fact, a lot of so-called low-income families are able to create an emergency fund and save up for college, retirement and many other major expenses.


If you can’t seem to put money in the bank, making a few lifestyle tweaks might just do the trick. Below are some steps you can take to start saving right now.


Be Smart About Debt

save money low incomeTake a good look at your debt and identify those with high interest. Because of their high fees and interest charges, high-interest personal loans or credit card debt are the ones you should prioritize. Pay them off in the shortest time possible. Just make sure each payment doesn’t put a big dent on your monthly budget. Also, it’s best to steer clear of any more high-interest debt. If you ever need help financing something, take the time to look for the most reasonable rates from the most reliable providers.


Trim Your Biggest Expenses

save money low incomeWhat expenses eat up most of your income? While it is possible to grow your savings with budget cuts on expenses like electricity, cable, food and gas, cutting larger ones will have a much bigger impact on your capacity to save money.  For example, if the home you’re renting has a lot of space you don’t use, maybe you can look into options like subletting or downsizing to a more affordable home. And if you are a homeowner, perhaps you can rent out a room or consider refinancing to avail of lower rates.


Stay in Control of Your Budget

save money low incomeNever ever buy something on a whim. Spend in moderation and always plan your shopping ahead of time so you can stick to your budget. You can indulge in some items every now and then, especially if they’re on sale. But for the most part, it’s best to keep most of your budget lean. Don’t be afraid to make a few sacrifices and always keep an eye out for ways to save money whenever possible.


Try a More Minimal Lifestyle

save money low incomeDo your best not to hoard stuff you don’t need. If you have gadgets, shoes, clothes and books you no longer use, maybe they can fetch a good price on e-commerce websites. Letting go of old stuff is one of the easiest ways to earn quick cash and start building your savings. You’ll be surprised at how much money people are willing to spend on all sorts of secondhand items online.


Diversify Your Income

save money low incomeIf you’ve cut costs and still can’t manage to set aside a small chunk of your income, consider earning extra money on the side. Think about what you’re good at and see if you can turn that into another income source.  Freelance writing, graphic design and data entry are just some good examples of well-paying jobs you can do from your own home.


There are plenty of ways to cut costs and grow your savings even if you’re always on a tight budget. Just be diligent and creative when sticking with the steps mentioned above, and you’ll be able to save up for the future right away.

Mustard Seed Money

Welcome to the website. A mustard seed is a very small seed but astonishingly grows very large over time. My hope is that through your financial journey that your small investment in time, money and faith will grow beyond anything that you could ever imagine.


  1. I think it really depends on what we mean by low income. For the average American yes it would be possible to side hustles and savings is always a potential. Then again I’ve met folks over the years who can only afford internet free from the library. For those people really the first place to start is improving their existing job prospects. Beyond that though I agree with your list.
    Full Time Finance recently posted…The Case for World Large Cap StocksMy Profile

    • Thanks for stopping by and sharing Full Time Finance. I think I read recently that your mother’s education has a direct correlation on your own. Seems like education is sometimes the best way to move up the career ladder 🙂

  2. Great tips, Mari. I’m a big fan of moderation in life and I also try to be somewhat of a minimalist. My family doesn’t shop much at all, we limit how often we go out to eat and try to tuck away as much savings as we can.
    The Green Swan recently posted…Money Mistakes By DecadeMy Profile

  3. Great tips.

    I think paying down high-interest rate debt is the first thing you should tackle if you want to save money/build wealth. Like many I’m a big fan of moderation and living below my means while still enjoying life. I’ve cut a lot of expenses out like cable and got a Netflix subscription.Also, cooking instead of eating out can save thousands over the course of a year 🙂
    Andrew recently posted…Why You Should Attend An Annual Shareholder’s MeetingMy Profile

    • I agree it’s all about priorties! My parents didn’t make a lot of money while my siblings and I grew up. My mom didn’t have a job most of the time. But we lived in an upper middle class neighbourhood because they were smart with their spending habits. We didnt have a lot of stuff, but they managed to save for all of our education and I can’t begin to explain how thankful I am for that.

      • Sounds like your parents definitely had their priorities straight. It’s awesome to hear that they prioritized your education. Thanks so much for stopping by and sharing!!!

  4. Great points. I agree with Frugal Farmer. I’m a big fan of “paying yourself” first, whether it’s through monthly 401k contributions or scheduled, automatic transfers into a savings or investment account. Once that’s done, you set your budget with whatever is left over.
    SomeRandomGuyOnline recently posted…Investigating Your InvestmentsMy Profile

  5. Great guest post! Hit on lots of good things to check out for, not just for low income but all incomes wanting to save more money

  6. Great advice. When I my wife and I were dating and I moved in I was 19k in credit card debt living in NJ with a 45k per year job. I also had another 39k in student loan debt. I also had an engagement ring to buy and a wedding ring to pay for. I followed many of the same steps outlined in this post, received a little help and now I’m debt free. I’m now applying many of the same steps to investing.

  7. I am now learning that it is important to save. My husband and I make pretty good money between the two of us but we have been terrible about spending. I am now prioritizing paying ourselves first now and everything else after. I am glad we figured this out although too little too late, we could be worth a fortune now. Thanks for the great info and tips.

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