When you have a low income, saving money is probably the last thing on your mind. People generally focus on their current condition rather than anticipate how things might be in the future, according to Brigitte Madrian, a behavioral economist at Brigham Young University. This definitely, includes thinking about saving.
Here are 10 great tips that can help you make great savings in lean times!
1. Create a Budget
"Creating and sticking to a budget is one of the best methods to save money," said Michael Ryan, a former Financial Counselor and Financial Coach.
After you've accounted for all of your sources of income, make a list of all of your basic expenses, such as rent, utilities, food, and transportation. You'll be able to see how much money you have left over each month once you've accounted for all of your costs. The money that is left over might then be put into savings.
2. Reduce Unnecessary Spending
"Cutting back on unnecessary expenses is another fantastic approach to save money," Ryan said. "For instance, if you have a gym membership that you seldom use, you might want to cancel it."
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3. Earn a Bank Bonus
"Some banks can pay you a bonus if you open a new account and meet a few easy requirements, like setting up direct deposit or maintaining a minimum amount," Matthew Dailly, Managing Director at Tiger Financial, explained.
You can earn up to $250 in as little as a few months with some of the best bank bonus deals. Read the fine print when signing up for a bonus to find out how to get the bonus and how long you have to keep the account open. Keep an eye out for reserve ratio requirements that could make opening or maintaining an account difficult, as well as account fees that could reduce your bonus.
4. Use a Money-Saving App
"It's difficult to save on a low income," Gary Grewal, CFP and author at Financial Fives, said.
One of my favorite recommendations for saving money is to use an app like Digit, which analyzes your expenditure and sends money to savings." You can also utilize a round-up savings tool like Chime or Acorns to save small sums per transaction, but it will accumulate up over time without feeling like a burden to someone living paycheck to paycheck.
5. Save What You Can, Whenever You Can
According to Jerry Zeigler, personal financial coach and proprietor of JZ Financial Management, says "One approach I have clients adopt, is to maintain a savings account and put a little money in when they are paid."
"If you have to start at the bottom, even if it's $5, do it." It's important to get started. If it stays in there, add a little extra with the next payday. If it doesn't stay in there, think about why it didn't and whether there are any changes you can make to your budget to ensure some savings."
"I don't want you to attempt to stop going to the movies once a week if that's what keeps you sane," Zeigler stated. "Smaller modifications are usually easier to implement. Perhaps you might go to a matinée or a day with a lesser ticket price. Perhaps you should eliminate the snacks."
6. Your Home Can Be Rented
Penny Polly's Cara Berkeley suggests renting out property you don't use and putting the proceeds into savings. "You could have assets such as an additional bedroom or a garage that you might rent out to supplement your income." You can even generate extra money by renting your car on Turo.com!"
Sara Lohse, director of marketing for BFG Financial Advisors had these similar suggestions:
There are also ways to rent out your space without having people actually stay in your home. Rent out storage space, like a garage, on an app like Neighbor or rent out your driveway to someone who needs parking if you live near an airport or in a busy urban area.
7. Do a No-Spending Challenge
“A no-spending challenge is when you don’t purchase any products for a span of time like a day, a few days, or a week,” said Jacqueline Gilchrist of Mom Money Map.
You can set ground rules to spend only on necessities. The benefits of doing a no-spending challenge are that it forces you to think outside of the box with what you have and learn new skills to avoid buying anything. When you don't have any money coming in, a no-spending challenge might be enlightening in terms of finding new ways to save.
**8. Put Any Extra Money Into Savings **
Carolyn Jones, money coach and proprietor of The Financial Moment, advised, "Put away money that is not a part of your weekly salary. Perhaps it's a tax refund or a surprise bequest," says the narrator. "Unaccounted for funds can sometimes be easily spent as a windfall. It's a great moment to set some money aside and increase your savings."
9. To save money, use a cashback credit card
"Another advice I have, is to utilize a cashback credit card for everything you can and then put the cashback into a savings account," Grewal said. "It's not money out of your pocket, but it helps you save."
10. Get a Second Job
"When you don't have a lot of money coming in, there's only so much you can save," Gilchrist explained. "What you save is the difference between your income and your spending and bills. You can only reduce your spending by a specific amount. You can always enhance your earnings."
"It may appear hard to enhance your wage in your current position since you can only negotiate to a certain amount," she continued. Getting a side job makes it much easier to supplement your income. Many work-from-home occupations, such as virtual assistant, bookkeeper, or Pinterest manager, have flexible hours, making them simpler to fit into a full-time schedule."