How to Save Money on Low Income: 11 Strategies That Work in 2025

You can learn how to save money on a low income, but it requires a different approach than the typical advice you’ll find online.

It’s not about deprivation, it’s about being strategic with the limited resources you have.

In this guide you’ll find realistic strategies that actually work when you’re earning less than you need. These are money-saving tips and hacks I have used and continue to use to build savings even when it feels impossible.

Why Traditional Saving Advice Fails Low-Income Earners

Before we get into what does work, let’s talk about why most saving advice misses the mark.

Traditional financial advice assumes you have discretionary income (money left over after covering your basic needs.).

But when you’re on a low income, there’s usually nothing left to “cut back” on.

You’re not eating out five times a week or subscribing to seven streaming services.

The real challenge isn’t that you’re bad with money. It’s that your income barely (or doesn’t) cover your essential expenses.

That’s why in the strategies below I focus on two things:

• Reducing expenses in ways that actually move the needle on a tight budget
• Finding small opportunities to increase income that fit your current situation

Let’s get into it.

Quick note: Who This Guide is For

If you’re trying to find ways to save money when you’re broke, live paycheck to paycheck, or want money-saving tips for low-income families, you’re in the right place.

The steps below work whether you’re single, share bills, or support kids.

Immediate Wins (Stop the Bleeding)

Before we talk about big lifestyle changes, let’s stop the leaks in your budget right now. These steps have the fastest impact.

Start With a “Survival Budget” Instead of a Traditional Budget

When you’re trying to save money with a low income, forget about traditional budgeting for a minute.

Instead, create what I call a “survival budget”.

It’s basically a stripped-down plan that covers only your absolute essentials.

Stuff that you have to spend money on to literally survive:

• Housing (rent/mortgage)
• Utilities (electric, water, heat)
• Food
• Transportation to work
• Minimum debt payments
• Basic phone service

Add up these costs. This is your baseline survival number.

Now, whatever income you have beyond this number (even if it’s just $20) becomes your “opportunity money.”

You can strategically allocate this to savings, reducing debt, or carefully chosen expenses that improve your quality of life or earning potential.

Why this works

Most people budget by allocating percentages (50/30/20 rule, anyone?). But when your income is low, percentages don’t matter, absolute dollars do. A survival budget shows you exactly where you stand.

For a more aggressive approach to resetting your finances, try our 30-day money challenge.

Cost Snapshot: Example Monthly Costs

Below is a simple example table to help you see where money typically goes. These are ballpark estimates to help you build a realistic survival budget, adjust for your area.

Expense	Example Monthly Cost (Estimate)
Rent (1-bedroom)	$700–$2000
Utilities (electric, water, heat)	$80–$200
Groceries (basic)	$200–$400
Transportation	$50–$200
Phone / Internet	$30–$80
Minimum debt payments	$50–$200

These numbers are estimates, your costs will differ. Use this to build a realistic survival budget.

Eliminate or Reduce Your Smallest Bill First

When you’re trying to save money with a low income, don’t start with your biggest expenses. Start with your smallest ones.

Why?

Because it’s easier to get it done and that little “win” give you more motivation and momentum to keep going.

Look at your monthly bills and pick the smallest one you can eliminate or reduce:

• That $8/month app subscription you rarely use
• The $15 gym membership when you could work out at home
• The $10 monthly “just in case” service you’ve forgotten about

Canceling a $10 subscription might not seem like much, but:

1. It’s $120/year in your pocket
2. It proves you can take action
3. It frees up mental space from tracking another bill

Once you’ve gotten rid of one or two small bills, move to the next category. Build momentum before confronting your car payment or rent.

Negotiate Bills Like Your Life Depends On It

When you’re figuring out how to save money on a low income, negotiation becomes a crucial skill.

Many people don’t realize that most bills are negotiable, even when you don’t have great alternatives:

Bills You Can Negotiate:

• Cell phone: Call and ask about lower-tier plans or loyalty discounts (potential savings: $10-30/month)
• Internet: Threaten to cancel and ask for retention offers (potential savings: $10-40/month)
• Insurance: Shop quotes annually and tell your current provider (potential savings: $20-100/month)
• Medical bills: Ask about payment plans, charity care, or bill reduction (potential savings: varies widely)
• Credit card APR: If you have decent payment history, call and request a rate reduction (potential savings: depends on balance)

Script that works

You don’t need to make it complicated. Use a simple script.

Even a success rate of 50% can save you $30-100/month across all your bills. That’s $360-1,200/year.

By the way, chekc out my post on how to lower your cell phone bill. It has a few very underrated hacks that could come in handy.

How to Save Money on Housing When You’re Low Income

Housing is almost always the single biggest expense.

While you can’t change your rent overnight, these realistic strategies can help you lower the burden without necessarily uprooting your life.

• Negotiate a Temporary Reduction: If you are a good tenant facing a short-term hardship, talk to your landlord. Ask for a temporary 10-20% rent reduction for 3 months in exchange for signing a lease renewal. It’s cheaper for them to keep you than to find a new tenant.
• Get on Subsidized Waiting Lists Now: The wait for Section 8 and local subsidized housing is long, sometimes years. Apply now, even if you don’t think you need it yet. You want to be on that list before the emergency happens.
• Explore Local Rent Assistance Charities: Organizations like St. Vincent de Paul, The Salvation Army, and local Community Action Agencies often have emergency funds specifically to prevent eviction or help with a deposit.
• Split the Cost with a Roommate: It’s a big lifestyle change, but it cuts your biggest bill in half instantly. If you have a spare room (or even a living room you can partition), renting it out is the fastest way to save $500+/month.

Lifestyle Changes (Slash Your Bills)

Once the bleeding has stopped, it’s time to look at your biggest variable expenses.

This is where you find the ‘hidden’ money in your paycheck.

Slash Your Food Bill Without Sacrificing Nutrition

Food is one of the few expenses where you have some control, even on a low income.

But you need to be strategic, not just “buy cheaper stuff.”

Here’s how to save money on a low income when it comes to food:

Shop Your Pantry First

Before you buy anything, eat what you already have. Challenge yourself to create meals from existing ingredients. You’ll be surprised what you can make.

Buy Store Brands for Staples

The generic pasta, rice, canned goods, and frozen vegetables are often made in the same facilities as name brands. You’re paying for packaging, not better quality.

Focus on Cost-Per-Meal, Not Cost-Per-Item

A $5 rotisserie chicken might seem expensive compared to $1 ramen, but that chicken provides 3-4 meals. The ramen is one meal. The chicken is actually cheaper.

Embrace Imperfect Produce

Many stores now offer “ugly” produce at significant discounts. It tastes the same but looks weird. Who cares? You’re going to eat it.

Plan Meals Around Sales

Check store ads before shopping. If chicken thighs are $0.99/lb this week, build several meals around chicken thighs.

Realistic savings potential

So how much can you rally save doing these things?

Most people on low incomes can reduce their food spending by $40–80/month with these strategies, without eating worse. USDA’s most recent ‘Thrifty Food Plan’ estimates show that most adults can meet basic nutritional needs on about $40–$55 per week when shopping strategically, which lines up with what I’ve personally seen when cutting my own food bill.

Tip: If you are truly struggling to keep the pantry full, check out our guide on how to get free food locally.

Use the “No-Spend Day” Challenge

Instead of trying to cut back on everything all month long (which leads to burnout), try designating 2-3 specific days per week as “no-spend days.”

On these days, you commit to spending absolutely nothing. No coffee, no gas, no convenience store runs, nothing.

You work with what you already have at home.

How to make it work:

• Choose your no-spend days strategically (maybe days you work from home or have leftovers ready)
• Plan ahead so you’re not caught without essentials
• Track your wins. Every no-spend day is a victory

If you can achieve three no-spend days per week, that’s 12-13 days per month where you’re not leaking money on unplanned purchases.

For someone on a low income, those small daily purchases ($3 here, $7 there) often make the difference between saving and not saving.

Practice “Delayed Purchase” Rule

Impulse purchases kill low-income budgets more than any other factor.

Here’s a simple rule that helps: For any non-essential purchase over $10, wait 24-72 hours before buying.

During that waiting period:

• The impulse often fades
• You realize you don’t actually need it
• You find a better price
• You discover you already own something similar

This doesn’t mean denying yourself forever. It means creating a pause between desire and action. That pause saves money without feeling like deprivation.

Try this: Keep a “wish list” in your phone. Add items you want to buy. Review the list after 2 weeks. You’ll be shocked how many things no longer seem important.

How to Save Money on Low Income When You Have Kids

Kids change the financial equation completely.

They need food, clothes, and care constantly.

Here are specific ways to reduce the “kid cost” without depriving them.

• Maximize School Resources: Don’t just use the free lunch program; ask about the school’s “backpack program” (weekend food), fee waivers for sports/testing, and uniform exchanges.
• The “Free Fun” Rule: Replace paid entertainment with library events, park days, and community festivals. Kids often value your time more than the ticket price.
• Rotate, Don’t Buy: For toys and clothes, join a local Facebook “Buy Nothing” group or set up a swap circle with other parents. Kids grow out of things so fast that buying new is throwing money away.
• Coordinate a Childcare Swap: Childcare is a massive expense. Find another parent you trust and swap date-nights or coverage hours. You watch their kids for free one night, they watch yours the next. It saves hundreds a month.

Habits & Income (Building the Future)

Saving on a low income isn’t just about cutting back; it’s about changing your relationship with money and finding small ways to bring more in.

Find “Hidden Hours” to Earn an Extra $50-200/Month

I won’t insult you with “just get a side hustle” advice.

I know your time and energy are limited.

You may even have an  side hustle or another part time job

But if you can find even 3-5 hours per week, earning an extra $50-200/month could dramatically improve your ability to save.

Low-Barrier Side Income Ideas:

• Online surveys/user testing: 3-4 hours/week = $40-80/month. Check out my full list of top online survey companies.
• Sell items you don’t use: One-time effort = $50-300 (Facebook Marketplace, Poshmark). See my list of easy things to sell for quick cash.
• Gig apps during your commute time: If you drive anyway, adding delivery apps = $50-150/month. Check out our guide to the best gig economy apps to find the right one for you.
• Freelance your existing skill: Even basic skills (writing, data entry, editing) = $100-300/month

The important thing is finding something that fits into time you’re already spending (like scrolling social media) or slightly modifying existing activities (like stopping for deliveries during your normal errands).

From my own testing of dozens of side-income apps over the years, the realistic range for most people is $10–$25 per hour on delivery apps and $5–$15 per session on user testing platforms, not the inflated numbers you often see online.

Automate Micro-Savings (Even $1 Counts)

You’ve probably heard that you should “pay yourself first” by automatically transferring money to savings.

Great advice, but not helpful when you’re not sure you can spare $100 (or even $25) per paycheck.

Here’s how we are going to change that into something that works:  Start with whatever you can genuinely afford, even if it’s just $1-5 per week.

Use apps like Digit, Qapital, or even your bank’s automatic transfer feature to move tiny amounts to savings regularly.

Yes, $5 per week only adds up to $260 per year, but that’s $260 more than you had before.

Pro Tip: Set up your automatic transfer for the day after your paycheck hits. This way you can avoid the temptation to spend that “extra” money.

The psychological impact of seeing your savings grow (even slowly) is more valuable than the actual amount at first. It builds the saving habit and proves to yourself that you can do this.

Create a “$5 Emergency Fund” First

Traditional advice says you need 3-6 months of expenses saved for emergencies.

If you’re on a low income, that number is probably $6,000-15,000.

Completely overwhelming, right?

I mean, if I’m making $2500 a month and my expenses are $2300 a  month, how the hell am I going to save $600 ion 6 months, never mind $15000!

But I can definitely save $5, right?

I’m serious. Your first emergency fund goal is $5. Then $25. Then $50, $100, $250, $500, and so on.

Why this works:

• You can easily save $5 in 1-2 weeks, giving you an immediate win
• Each milestone feels accomplishable
• You’re building the actual savings muscle, regardless of the amount
• Even $100 can prevent a small emergency from becoming a debt spiral

Think about it…

$50 in the bank can cover an unexpected car repair part, a prescription, or a school fee without going to a payday loan. That alone makes it worth building.

Important: Keep this money in a separate savings account you can’t easily access with your debit card. Out of sight, out of mind.

Focus on “Percentage Progress” Not “Dollar Progress”

When you’re saving money with a low income, comparison kills motivation.

Someone earning $75,000 might save $500/month easily.

You might save $25/month through immense effort. Comparing dollar amounts makes your progress seem insignificant.

Instead, focus on your percentage improvement.

If your monthly income is $2,000 and you save $25, that’s 1.25% of your income.

That’s proportionally similar to someone earning $75,000 and saving $937/month. You’re doing just as well, the numbers just look different.

Track these metrics:

• Percentage of income saved (even 1-2% is great)
• Percentage improvement in your savings rate over time
• Percentage reduction in debt or bills

This mindset shift helps you see your real progress instead of feeling defeated by small absolute numbers.

Common Mistakes to Avoid When Saving on a Low Income

Even with the best intentions, certain mistakes can derail your savings efforts:

Trying to save too aggressively too fast

This leads to burnout and binge spending. Slow and steady wins.

Comparing your progress to others

Your financial situation is unique. Focus on your own improvement, not someone else’s numbers.

Keeping savings too accessible

If your savings account is linked to your checking, you’ll spend it. Create friction by using a different bank.

Giving up after one setback

You will have months where you can’t save. That’s normal. One bad month doesn’t erase your previous progress.

Ignoring small expenses

Those $3-7 purchases add up faster than you think. Track everything for one month, you’ll be surprised.

How to Stay Motivated When Progress Feels Slow

Let’s be real..

Saving money on a low income is hard. The progress is slow, and setbacks are frequent.

Here are a few tips to help you keep yourself motivated:

• Celebrate small wins. Saved your first $50? That deserves recognition. Went two weeks without dipping into savings? Win.
• Track progress visually. Use a simple chart or coloring page to mark savings milestones. Seeing progress helps more than you’d think.
• Connect with others in similar situations. Online communities (like Reddit’s r/povertyfinance) provide support from people who actually understand your challenges.
• Remember your “why.” Are you saving for emergencies? To break a debt cycle? To eventually have options? Keep that reason front and center.
• Give yourself grace. Some months will be better than others. That’s okay. The goal is overall direction, not perfection.

Using the Safety Net: Government & Local Help

If you have cut every corner and the math still doesn’t work, you may qualify for support programs designed to bridge the gap.

There is no shame in using resources your taxes have helped pay for.

SNAP (Food Benefits)

The Supplemental Nutrition Assistance Program can free up hundreds of dollars in your food budget.

According to federal data, the average SNAP benefit for eligible single adults is roughly $202 per month, which is often enough to free up $50–$150 in someone’s budget for savings or essential bills.

LIHEAP (Energy Assistance)

This federally funded program helps low-income families pay energy bills. You can find your local LIHEAP provider here.

Lifeline Phone Program

You likely qualify for free internet or phone service through the government’s Lifeline program if you are already on SNAP or Medicaid.

Transportation Help

Programs like the United Way’s 2-1-1 often provide free gas cards or bus passes for job-related travel.

Local Emergency Assistance

Search for your local Community Action Agency, which can sometimes offer one-time cash grants to prevent eviction or utility shut-offs.

Search your state’s “.gov” website for eligibility requirements, or dial 2-1-1 on your phone to be connected to local agencies immediately.

FAQ: Saving Money on a Low Income

Your Next Steps: Take Action Today

You’ve made it through this guide, which means you’re serious about learning how to save money on a low income.

That’s already more than most people do.

Here’s what to do right now:

Step 1: Calculate your survival budget. Know your baseline number.

Step 2: Choose one strategy from this list to implement this week. Just one. Don’t overwhelm yourself.

Step 3: Set up a separate savings account if you don’t have one. Even if you put $1 in it, the act of opening it matters.

Step 4: Set a reminder to review your progress in 30 days. Look at what worked and what didn’t.

Having a plan and following it will make it much easier to stick with it.

Is It Actually Possible to Save Money With a Low Income?

Yes, it absolutely is!

But saving money on a low income isn’t about making huge sacrifices or magically spending less on things you’re not buying anyway.

It’s about being strategic, building sustainable habits, and recognizing that small progress is still progress.

These are not money saving “hacks” from someone who has never had to deal with picking between paying the electricity bill or buying groceries. I have been there and I know what it feels like to read all these “experts” telling you to save this much or that much when you barley make that much in a month, in the first place.

But the simple strategies in this guide actually work for anyone who wants to save money fast on a low income. So give them a try!