How to Save Money Fast on a Low-Income

Saving money can feel challenging at times! Those few pounds spent here and there can quickly chip away at your savings. But fear not! Our 20 handy tips based on how to save money fast on a low income, will kickstart your saving journey, build lasting habits, and boost your bank balance.

Whether you're aiming for big financial milestones or small wins, our blog will set you on the right path.

How to Save Money Fast on a Low-Income

Navigating finances on a tight budget requires savvy tactics and actionable tips to stretch every penny. Here's a practical guide filled with essential advice for individuals and families looking to maximise their cash:

1. The 50/30/20 Rule

The 50/30/20 rule is your budgeting best friend. Here’s how to make it work for you:

• Needs (50% of Income): Keep the essentials covered—rent, utilities, groceries, and transport. These are your must-haves to keep life ticking smoothly.
• Wants (30% of Income): Treat yourself without breaking the bank. Budget for fun stuff like hobbies and dining out, but keep it within reason.
• Savings (20% of Income): Even small savings add up! Put aside for emergencies and future plans. Set up automatic transfers to make saving effortless.

2. Clear Debt

Debts often come with high interest rates. So, the longer it takes to pay them off, the more money is spent. If you’re saving for something long-term, always pay off your debts first, so you’re not spending unnecessarily on interest.

For example, if you have a debt of £1000 with a 14% interest rate (costing £140 per year) and have £1000 put away in a savings account with a 1% yield (earning £10 a year), you’ll be loosing out on £130 a year by not paying off the debt first.

We understand this isn’t feasible for everyone, as it could take a long time to clear debt and start saving money. So, if you need to save for something short-term, this won’t work for you. However, if you’re in no rush, you should prioritise clearing all debts.

3. Manage Bills and Expenses

Managing bills and expenses efficiently is crucial for anyone. So whether you’re trying to save money fast on a low income, or if you have a healthy amount of money coming in, here are some strategies to help:

• Negotiating Bills: Have you got the cheapest deal possible on your bills? Gas, electricity, broadband etc. contribute to a huge chunk of your monthly outgoings, so if you could reduce them slightly you could be adding the difference to your savings.
• Switch Providers: Make sure you’re on the cheapest energy tariff or deal possible. Many companies also offer incentives to switch such as cash payouts or lower monthly payments.
• Don’t Waste Energy: How do you spend less on your energy bills? Use less energy! Switch to a smart meter, get LED lightbulbs, turn off switches where possible… you get the gist.
• Prioritising Payments: Develop a system to prioritise bills to avoid late fees and maintain a good credit score.

4. Save on Utilities

Being savvy with your utilities can make a noticeable difference to your monthly expenses. Doing the following can help you save significantly:

• Energy-efficient Appliances: Choose appliances with high energy efficiency ratings to reduce electricity consumption.
• Mindful Usage: Be conscious of your energy usage habits by turning off lights and appliances when not in use.
• Invest in Smart Devices: Use smart home technology to automate energy consumption based on your daily routines.
• Long-term Savings: These small adjustments not only lower utility bills but also contribute to a more sustainable lifestyle.

5. Smart Grocery Shopping

A little planning can go a long way in stretching your budget and reducing waste when grocery shopping. Shop smarter, save money, and make your grocery budget work harder for you.

• Plan Meals and Stick to Your List: Planning your meals ahead of time and making a shopping list can prevent impulse buys and ensure you only purchase what you need.
• Hunt for Deals and Discounts: Keep an eye out for sales, promotions, and coupons on essential items. Shopping at discount stores or during off-peak hours, when clearance items may be out, can also lead to significant savings.
• Utilise Loyalty Programs and Cashback Apps: Join loyalty programs offered by supermarkets to earn rewards or discounts on future purchases. Additionally, consider using cashback apps that offer rebates on groceries or other everyday purchases.
• Avoid Overspending: Set a budget for groceries and stick to it. Avoid shopping when hungry and be mindful of marketing tactics designed to encourage impulse purchases.

6. Affordable Transportation

Finding economical ways to get around saves money and reduces your carbon footprint. Here’s how you can cut down on transportation costs without sacrificing convenience:

• Carpooling: Sharing rides with friends, neighbours, or colleagues can significantly reduce petrol expenses. Plus, it's a great way to socialise and split the costs of fuel and maintenance.
• Public Transit: Buses, trains, or trams can be a cost-effective alternative to driving. Many cities offer discounted monthly passes or fares for regular commuters, making it even more affordable.
• Biking: Choosing cycling whenever possible not only saves money on petrol but also promotes physical fitness. It's a green and healthy way to commute shorter distances or run errands around town.
• Maintenance Savings: By driving less frequently, you'll also spend less on vehicle maintenance and repairs, extending the lifespan of your car and saving on unexpected costs.

7. Track Your Spending

Budgeting apps allow you to be in control of your spending. There are lots of apps out there, but one that we've tried and loved is Monzo. Monzo is an online banking app that has some impressive budgeting features.

You can categorise every payment you make, allowing full visibility over your monthly spending. It also allows you to create handy pots to separate your savings.

8. Set Realistic Goals

Map out achievable financial goals. Whether it’s building an emergency fund or treating yourself, having targets keeps you on track.

Want more tips on how to save money fast on a low income? Keep reading.

Quick Cash Ideas

Sometimes, you need a little extra money fast. Whether it's to cover an unexpected expense, boost your savings, or fund a special treat, quick cash ideas can be a lifesaver. Here’s some flexible, creative and practical ways to earn money fast:

9. Sell Your Stuff

One of the easiest ways to make some quick cash is to sell unwanted items using online selling sites. You can sell your old books, CDs, DVDs and games with WeBuyBooks, old clothes on Depop or Vinted unwanted furniture on Facebook Market place and just about anything on eBay.

10. Take Up a Side Hustle

If you want to seriously boost your savings, it’s worth considering taking up a side hustle or part-time job. This can be anything from a few bar shifts a week to starting a small online business.

All the extra income from your side hustle can go straight into your savings pot! But remember your health is more important than your saving goals, so be careful not to burn yourself out.

11. Complete Surveys

Taking part in surveys is an easy way to make a few extra pounds! Believe it or not, you can get paid quick cash to offer your opinion on something from the comfort of your sofa whilst your favourite TV show is on in the background. Sounds like a no-brainer right?

Budget Binders and Budget Planner Books

Managing your money well is essential for feeling secure and reaching your financial dreams. Budget binders and budget planner books are excellent for organising your savings and spending.

12. Creating a Budget Binder

A budget binder serves as a cornerstone for effective financial management, offering a structured way to organise your finances. Follow this step-by-step guide to set up your own Budget Binder:

• Choosing Your Binder: Start with a sturdy three-ring binder that allows for easy organisation and expansion. You can easily pick these up in stationery stores or on Amazon.
• Essential Sections: Include sections such as Monthly Budgets, Expense Tracking, Savings Goals, Debt Repayment, and Financial Goals.
• Tracking Expenses and Savings Goals: Utilise printable templates for tracking monthly expenses against your budgeted amounts. Include sections for savings goals to monitor progress.

Creating a Budget Binder not only keeps your financial documents organised but also empowers you to make informed financial decisions confidently.

13. Using Budgeting Worksheets and Printables

Effectively managing your finances begins with well-structured budgeting worksheets and printables. Here’s how to make the most of them:

• Resources Available: Explore a variety of free and paid resources offering budgeting worksheets tailored to different financial goals and lifestyles.
• Customisable Templates: Choose templates that match your budgeting style, whether it’s zero-based budgeting, envelope system, or budgeting which prioritises the most important spending.
• Tips for Effective Use: Regularly update your budgeting worksheets to reflect changing financial circumstances. Track your expenses and adjust your budget as needed to achieve financial stability and meet savings objectives.

14. Set Financial Goals with a Budget Planner Book

A budget planner book is another powerful tool for setting and achieving financial goals. Unlike a binder, which may be difficult to carry with you daily, a book offers portability and convenience. You can easily track expenses, jot down financial insights, and review your progress regularly. Here’s how to maximise its potential:

• SMART Goals: Use your budget planner book to set Specific, Measurable, Achievable, Relevant, and Time-bound (SMART) financial goals.
• Tracking Progress: Monitor your progress towards savings milestones, debt repayment targets, and other financial objectives using dedicated sections in the planner.
• Motivational Tools: Take advantage of motivational tools and prompts within the planner to stay inspired and focused on achieving your financial goals.

15. Incorporating Budget Planner Books into Daily Routine

Integrating a budget planner book into your daily routine enhances financial discipline and accountability. Here’s how to make it a habit:

• Establishing a Routine: Dedicate specific times each day or week to update your budget planner book, review expenses, and track progress towards your financial goals.
• Integration with Daily Tasks: Seamlessly integrate budget planning with daily activities such as meal planning, grocery shopping, or commuting to stay aware of spending habits.
• Staying Consistent: Implement strategies to stay consistent with your budgeting goals, such as setting reminders or involving family members in the process.

Cut Your Spending

It’s a no-brainers that cutting your spending will mean more more money in your bank account but there may be outgoings you’re not aware of or things you haven’t thought of to save your cash.

16. Cancel Unused Subscriptions

It’s surprising how many little direct debits might go unnoticed if you don’t check your bank regularly. Some of them might even be for things you don’t use anymore but have forgotten to cancel, which is a total waste of money! Go through all your direct debits and cancel any that you’re not getting your money's worth for.

17. Use Loyalty Schemes

Customers are rewarded by many retailers, restaurants and supermarkets for spending money by giving them points that can be converted into vouchers. Some will even offer special promotions for their loyal customers, which is a great way for you to spend less.

18. Shop Savvy

Turn into a savvy shopper and you could save a ton of money! Simple things like buying things in the sale, picking up supermarket own brands when doing your shopping, planning your meals so you only buy what you need and haggling for a better deal on your phone contract can all help. You’ll be surprised how much money you end up saving at the end of the month.

19. Try a No-Spend Weekend

Most people spend the majority of their money on the weekends, but there are plenty of ways to have fun on your days off without spending a bomb. And just imagine how much extra you could add to your savings!

Some fun and free ideas include going on a walk, having a games night, movie night, visiting a free museum and eating food you have in the house.

20. Put a Spending Limit on Your Card

If you really can’t stop yourself from spending any other way, you can even put a spending limit on your debit or credit card. This is a great way to save money because you physically won’t be able to go over your budget!

Some of the tips above may help more than others, depending on what you’re saving for. But just by putting a few into practice, you’ll boost your savings and get a lump of cash together.