How to save money on a low income, according to Reddit
When you barely earn enough to cover your day-to-day expenses, setting aside money for a rainy day probably isn’t a priority. But living on a low income means that having a financial safety net is especially important. “Savings create stability, and this is particularly important when you're on a tight budget,” said Andrew Latham, a certified financial planner with SuperMoney.com. “Without a cushion, even a $200 emergency can push you into debt,” he explained, noting that more than half of Americans can’t cover a $1,000 surprise expense. “Even a small emergency fund reduces stress, helps you avoid high-interest credit, and gives you flexibility for future opportunities.” So, what can you do to save money on a tight budget? Often, the best money-saving hacks come from people who’ve been in your shoes. Read more: This is the minimum amount of savings you need to improve your financial well-being This embedded content is not available in your region. Reddit can be a great resource when it comes to real-world strategies for stretching a dollar further. From creative grocery hacks to clever budgeting strategies, we rounded up the best savings advice from Reddit users that you can hopefully use too. Note: Some responses have been lightly edited for clarity. “The easiest way I've found is to write down every penny you spend and adjust from there. It's surprising how fast 10 dollars here and there adds up.” -No_Gear_1093 “My biggest thing is preparing food ahead of time and always having snacks on me, lunch at work, etc. Why is because personally, if I’m hungry with no meals prepped or quick easy meals, I’m more inclined to just swing through the drive-thru on my way home. Taking the time to prep on the weekend, I have my meals already planned which is one less thing to think about and it’s ready, so I’m not reaching for less healthy/more expensive options. Hitting financial and nutritional goals in one step!” -VictoriousMango Take advantage of coupons and cash back “Honestly couponing. It’s time-consuming and I’ve been weaving in and out, but cross-referencing Target Circle w Ibotta, Walmart w ibotta etc. coupons plus cash back. Also im trying to get better at using Rakuten for cash back deals when I'm booking trips or shopping.” -Melodic_Simple3945 “I do the ‘envelope’ method that works for me. I’m salaried, so I plan what bills come out of what check for about 4-6 months at a time in a note on GoodNotes. When check comes, I leave whatever money is for bills in my account and take everything else out in cash. Typically, I pull $150 for gas, $200 groceries, $100 spending. This is for 2 weeks as I’m paid every two weeks. Everything else goes into a cash binder. $200 goes into a slot that’s for “this paycheck emergency” if some kind of small emergency comes up (like my dog got stitches and had to take her every 3 days to get rebandaged and it was $36 every time) —just something I need that wasn’t planned for. Rest goes into “savings” slot. At the end of two week whatever I have in all categories will go into savings and I’ll start over. I don’t roll any of the money over automatically as that’s how works in my head.’ -dawgmom15 Read more: Guide to the envelope budgeting system “Going cash only for a month or two really shows people where the money actually goes. And even when I was flat broke and scrambling decades ago, I managed to save money when I did that.” -surfaholic15 “Pay yourself first! AKA when you get your paycheck, immediately put some money into savings. Then do NOT dip into your savings account to pay bills or buy silly things.” -mdocks Read more: What does it mean to 'pay yourself first,' and how does it work? “My wife and I would put all spare change in a jar for the year so that we could have a good Christmas and we would usually have $200-$300 and it became such a tradition, we still do it. About Dec 10th, we go to the bank and use the coin machine to count up, then we split the money and it has to be used for Christmas only. Its actually a very enjoyable tradition born out of being poor.” -FunnyNameHere02 Take inventory and declutter “Start with cleaning your house. You will see how many clothes or stuffs that you actually don't need. Sell them or donate them. This doesn’t just free your spaces, it helps you know what you have so you don’t waste money on buying items you already have. Also clean your fridge and pantry. Throw all expired food. And make a list on the fridge of what you have inside. Cross out whenever you eat them.” -wrong-answer-only Research and track food prices “Keep a spreadsheet with the food prices at local stores. I would go to four different stores to do my weekly grocery shopping to get the best deals on everything. I also read the paper leaflets with the weekly specials before going shopping and would add that to my list and buy 2 of the things I needed. I don't think that I paid full price for anything for a few years.” -MmeNxt “I know a lot of people really enjoy streaming services. I only sign up or renew them during Black Friday. You can get them for very cheap. For example, Hulu and Disney plus for $3/month. Peacock for $20 for the year. Yes they have commercials. But for that cheap I’m not complaining.” -nikki_11580 “If you can't pay down a credit card at the end of the month, you are overspending. Credit cards are high-interest loans. They should be used for cashback rewards and consumer protections. When paid in full at the end of each month, you gain all the benefits of being a card holder for free and are protected from spending more than you earn.” -lets_try_civility Read more: How to pay off credit card debt when your budget's tight “When I was on a low income, the biggest game changer was automating a small transfer to savings every payday because even $10 adds up over time. I also cut recurring costs I barely used and put that money straight into savings.” -StonkPhilia Read more: Should you automate your savings? Pros and cons to consider first. “At the end of the day there are only two levers to pull: Expenses or income. If you have already maxed out what you can do for expenses, you need more income. Unfortunately, it's simple but not easy. However, I would put any extra energy into seeing how you can raise income at your current job, or find a new one that pays better.” -ser_davos33 Read more: How to make more money with a side gig: 6 tips for success Ultimately, boosting your savings will require consistency and a mix of a few different savings strategies. When you’re working with a smaller income, your savings goals can feel unattainable. However, experts say that it’s not about how much you put away — the key is to get started as soon as possible. Even setting aside a small portion of your income can add up over time. That’s why, according to Latham, it’s helpful to focus on the small ways to save that add up. “Automate $10–$20 per paycheck into savings so you build the habit without thinking. Review bills yearly and cut or renegotiate services you do not need,” he said. “Meal planning, cooking at home, and buying generic brands can trim food costs significantly. Using cash for categories like groceries and entertainment also helps keep spending under control.” Start by reviewing your current budget and bank statements. This will give you a clear picture of where your money is going and where you can afford to cut back so that you can redirect that money toward your savings account. Even trimming your costs by a few dollars each month can have a big impact if you stick with it.
