Are you looking for how to save money fast on a low income when you’re broke? Below are some great tips to start saving money so you can put the rest in savings!
Did you know Americans spend an average of 70% of their income on housing, transportation, and food? On top of that, almost 40 million households have no retirement savings at all. Yikes!
Learning how to save money fast on a low income is possible. What’s helped me in the past is cutting my expenses down so that I can apply those savings to my savings account.
Save money on cell phone bills
Try contacting your current cell phone provider to see if they will work out a lower monthly plan with you. If they will not budge, you can always look into other companies for a better deal.
For instance, FreedomPop offers a no contract basic plan that is FREE. And, they offer a family plan that includes FREE unlimited calling and texting.
What I like about FreedomPop is that you have the choice to bring your own phone. You do have to go to the page to see if the phone qualifies for a transfer. If not, you have the option to buy a cheap phone.
Possible savings: $800-1000+ a year
Discover ways to save money on groceries
Besides shopping sales, become familiar with price points for items you buy most. Even without using coupons, this one tip is what has saved me the most money.
For example, my local Tops Market has Wise Potato Chips on sale for buy one get one free. Yet, Walmart offers them at a lower price all the time and is cheaper per bag.
The chips at Tops Markets might sound like a better deal. In reality, the store adds an extra $1 in price. Since I already knew my price point for the chips, I knew that Walmart had the better price despite the deal.
Cash back coupons work differently than regular coupons. When you sign up, it might ask for your stores’ loyalty card information. That is how they track items you’ve bought, and how they know to redeem you for products you’ve bought.
Possible savings: $100’s a year
Cutting the cord on cable tv subscriptions
Cut the cost of cable and satellite TV by switching to online streaming and devices.
Hulu also recently launched their own version of live streaming for $39.99 a month. Besides the on demand streaming they already offered, you can now watch up to 50+ channels live. Plus, you can record live TV with 50 hours of storage.
Personally, I use my laptop and a USB cord to connect to my flat screen to watch TV. But there are easier options such as using a Roku or Amazon Firestick. Connect the USB to your flat screen, and start connecting.
Not interested in streaming? You can also opt for a TV antenna such as the Mofu Leaf. If you go to their website, you can see what local channels you can get with their antennas.
Possible savings: $600-1200 a year
Save money on magazine subscriptions
Did you know that you can get some popular magazines for cheap, or sometimes even free? If I can help it, I don’t pay for subscriptions at all.
Free magazine subscriptions are easy when the offers are available. But the offers don’t last long. So make sure to read my post about free magazine subscriptions by mail to learn more.
For cheap magazine subscriptions, I’ve used Magazines.com. If you’re looking for several subscriptions, check the “Penny Sales” section.
Possible savings: $30-50+ a year (depending on subscriptions)
When you’re not making a lot of money, it’s hard to see how to save money fast on a low income. But that’s why I love automated savings since I’m able to save money without realizing it.
Chime Bank is one place that offers automated savings. The bank rounds up transactions to the nearest dollar and puts the money into a savings account. They add an extra 10% reward to the money that’s been set aside, up to $500 a year.
To take automated savings even further, consider checking out automating savings apps. Dobot uses your checking account to make small transfers into a savings account once a week.
Dobot uses an algorithm to make sure you save what you can afford and avoid overdrawing your account. What I like about Dobot is that you can turn it on and off whenever you want.
EvoShare is another automated savings app, but it works a bit differently. It automates saving, but you choose to apply it towards your student loan debt or retirement.
Possible savings: varies
Saving small amounts of money
Whether you choose to automate your savings, you should also be finding ways to save small amounts when you can. Even if it’s $5 a week transferred to your savings account.
The way I was able to do this was by figuring out what I felt I wasted money on most. Trips to get coffee at Dunkin Donuts, the fast food splurge, etc.
Lately, I noticed I had been spending a lot more money on quick processed convenience foods. Since I was already trying to eat healthier, I decided to try not buying any more processed foods.
I was surprised to find that I was spending a lot less money on my weekly grocery bill. And here I thought eating healthier would cost me a lot more money.
I’ve been noticing that I’m saving upwards of $200 a month. It’s crazy to think that a simple switch like cutting out unprocessed foods and junk foods is saving me that much money.
Possible savings: varies