How to Save Money on a Low Income

1. Set Financial Goals

A specific goal helps keep you motivated to save. For example, you might want to build an emergency fund or save for a down payment on a car. Once you have a goal, you can figure out how much you'll need to save to make it reality. If you want to have $4,000 for a down payment on a car in two years, for instance, you'd need to save about $166 per month to make that happen.

Tip: Consistency is key to successful saving, and starting small is better than not starting at all. Putting aside $10, $20 or $50 per paycheck gradually adds up.

2. Track Your Spending

Do you know where your money goes? Going over your bank account and credit card statements for the past three months or so to track your spending helps you see the big picture. Sort your expenses into categories including essentials (such as housing, groceries, transportation and health care) and nonessentials (such as entertainment, eating out and clothing).

Tip: Using a budgeting app can make it easier to track your spending, saving and progress towards your goals.

3. Create a Realistic Budget

Add up your monthly income, including wages, tips, child support payments and any other sources, and your monthly expenses. Then make a budget that includes a savings plan.

Popular budgeting methods include the pay yourself first method and the 50/30/20 budget; explore different options to see which works for you. If your income isn't enough to cover your expenses and still allow for savings, look at nonessential spending to see if there are costs you can reduce or cut out completely.

Learn more: Types of Budget Plans to Know About

4. Increase Your Income

Spending less is one way to save money, but you can also look for ways to make more money. For example, you could ask for a raise, request extra hours or overtime at work or look for a better-paying job.

Depending on your situation, you could also get a part-time job or start a side hustle such as child care, tutoring, dog walking, house sitting, rideshare driving or selling items online. More than one-third (36%) of Americans who successfully paid off previously unmanageable debt did so by taking on a side hustle, a 2025 Experian survey found.

Learn more: How to Break the Paycheck-to-Paycheck Cycle

5. Meal Plan and Cook at Home

It's tempting to buy lunch at work or hit the drive-thru for dinner after a long day, but you'll save a lot of money by cooking at home. Check your family's schedule and the weekly grocery circulars each week and plan menus around what's on sale. Canned and frozen fruits and vegetables are generally cheaper than fresh, provide plenty of nutrients and keep for months.

Too busy to cook every night? Spend Sunday evenings food prepping meals or cooking batches of rice, pasta, meat or beans. You'll be able to pull meals out of the freezer or quickly put together workday lunches or dinners.

Tip: Save money by purchasing generic substitutes for foods, over-the-counter medications, toiletries, paper goods and household products.

6. Look for Coupons and Discounts

You can find coupons or discounts for just about every product or service, from supermarkets to gas stations. Getting the deals may require downloading the company's app and joining a loyalty program, which is typically free to do. You can also use cash back apps or look for coupon codes online before you shop. (Just make sure not to let discounts tempt you into buying things you don't need.)

Tip: Use windfalls wisely. Next time you get a cash gift, bonus, tax refund or other unexpected income, put it toward savings or paying down debt.

7. Compare Insurance Rates

Renters insurance, homeowners insurance and auto insurance are essential for safeguarding yourself, but coverage can be expensive. At least once a year, ask your insurer about new discounts you may qualify for, and shop around to see what other carriers offer.

You can make rate-shopping easier by using comparison sites that gather quotes from multiple insurance companies. For example, Experian's auto insurance comparison tool collects quotes from dozens of top auto insurance providers in your area, so you can easily see who offers the best prices.

Learn more: Ways to Find the Most Affordable Insurance Online

8. Take Advantage of Workplace Benefits

Your employer may offer money-saving employee benefits you don't even know about. Many companies offer their employees discounts on gym memberships, entertainment, cellphones and more; commuter benefits that can help pay your commuting costs; student loan repayment assistance; or health savings accounts (HSAs) and flexible spending accounts (FSAs).

Learn more: How to Save With Irregular Income

9. Cancel Unnecessary Subscriptions

Cellphone plans, internet service, cable TV, streaming services or music platforms—it's easy to lose track of all the monthly subscriptions you're paying for. Search your credit card and bank statements, make a list of your subscriptions and cancel those you no longer need.

Look for ways to save on the subscriptions you keep, such as downgrading your cellphone plan or streaming service to a cheaper option or bundling cable, phone and internet services.

Tip: Sometimes if you start the process of canceling a subscription, the company will offer you a discount for a year, which can save you some money.

10. Drive Less

Walking, biking, carpooling or taking public transportation whenever possible saves money on gas. It also reduces wear and tear on your car, lowering your maintenance and repair costs. If it fits your lifestyle, downsizing to a one-car family could save you even more.

Tip: Driving 7,500 miles or less annually could qualify you for low-mileage car insurance, reducing your insurance premiums.

11. Shop Secondhand

Buying used goods whenever possible benefits both your budget and the planet. Head to local thrift stores or shop online at sources like Craigslist, eBay, Facebook Marketplace, Poshmark, ThredUp or OfferUp. You'll find everything from furniture, clothing and sporting equipment to toys, pet supplies and home decor.

Tip: Joining an online financial accountability group or forming a support group with friends and family members can help motivate you to stick to your budget and reach your savings goals.

12. Find Free Stuff

Join "buy nothing" groups, such as Buy Nothing or The Freecycle Network, where members give away things they no longer need. Once you're a member, you can search for items on offer or ask for something you want. You can also find free stuff at Nextdoor or Craigslist. Some public libraries let cardholders borrow items such as tools, bicycles, hiking equipment or sewing machines.

Tip: Make saving a game by taking a no-spend challenge and giving up all nonessential spending for a weekend, a week or a month.

13. Avoid Financial Fees

Bank fees such as overdraft fees, nonsufficient funds fees, maintenance fees and ATM fees can eat into your savings. Missing a payment due date could also lead to late payment fees (and potentially hurt your credit score). Try these tips to avoid costly fees:

• Set up autopayment of your bills to avoid forgetting due dates.
• Monitor your checking account balance regularly to ensure you have enough money for payments to go through.
• Use ATMs in your bank's network.
• Set alerts with your bank and credit card accounts to get notified by text or email when your bank balance dips below a certain amount or a credit card payment is coming due.

Tip: If your creditors let you set your own payment due dates, scheduling bill payments shortly after payday or staggering them throughout the month can make paying bills more manageable.

14. Negotiate Your Bill

You can sometimes negotiate monthly bills, such as utilities, cellphone service or cable television, by contacting the provider. This generally works best if there's a competing service provider you could switch to—for instance, if there are two cable companies or utility providers serving your location. You could also use a third-party service like Experian BillFixer^™ to negotiate for you.

Learn more: How Often Should You Negotiate Your Bills?

15. Reduce Housing Expenses

Taking in a roommate, negotiating with your landlord or moving to a more affordable location could help you save on housing, which can have a big impact on your budget. You might get a deal on rent by signing a longer lease, paying rent upfront or offering to work for reduced rent, such as providing repair services to the property.

Learn more: Ways to Save Money on Rent

16. Lower Your Utility Bill

Use less electricity by setting your thermostat higher in the summer and lower in the winter, doing laundry in cold water and unplugging electronics and appliances you're not using. You can also lower your water bill by taking shorter showers, washing dishes more efficiently and watering your lawn less often.

Learn more: How to Save Money on Your Electric Bill

17. Automate Savings

Do you wait until the end of the month to put money into savings? By that time, there may not be anything left to put aside. Instead, pay yourself first by setting up automatic transfers into your savings account so you aren't tempted to spend the money. Consider opening a high-yield savings account to make the most of your savings. As of May 2025, the best high-yield savings accounts earn as much as 4% to 5% interest, compared to less than 1% for standard savings accounts.

Learn more: How to Stay Motivated to Save Money

18. Apply for Assistance Programs

If your basic expenses outstrip your income no matter how hard you try to save, you may qualify for financial assistance from state, local or federal government programs.

• Use Benefit Finder to search for benefits you may qualify for, such as Medicaid, tax credits, housing assistance and more.
• Call 211 to get connected with community organizations that provide assistance to low-income individuals.
• Find food pantries in your area to supplement your grocery budget.

Learn more: Types of Government Assistance for Low-Income Families

19. Limit Credit Card Use

Carrying a balance on your credit cards can make it harder to save money. Unless you pay your credit card statement balance in full by the due date, you'll begin accruing interest on the outstanding amount and can end up in a debt cycle. Try these strategies to limit credit card use:

• Remove the card from your wallet and mobile wallet.
• Freeze your credit card so you can't use it. You can freeze a credit card quickly using your card issuer's website or mobile app.
• Pay for purchases only with cash.
• Use the credit card as if you were spending cash and immediately pay off whatever you spend.

Learn more: How Much Credit Card Debt Is Too Much?

20. Tackle Debt Strategically

With the average credit card annual percentage rate (APR) at 21.91% as of May 2025, according to the Federal Reserve, carrying a balance on your credit cards can rack up hundreds of dollars in interest charges per month. Paying off that high-interest debt will free up more money for savings. Options for paying off debt include:

• The debt avalanche or debt snowball methods
• Using a debt consolidation loan with a lower interest rate than your debt to pay off your balances
• Consolidating debt with a balance transfer credit card that has an introductory 0% APR

Learn more: How to Save and Pay Off Debt at the Same Time

21. Get Help

If you're struggling to save money and stay within a budget, working with a certified credit counselor could help. Legitimate credit counselors generally offer their services for free and can help you develop a budget, pay off debt and create a plan to save money. Depending on your situation, a credit counselor may recommend a debt management plan to help you get out from under high-interest debt.

Learn more: How to Find a Good Credit Counselor

The Bottom Line

Having good credit is another way to save money. A good credit score can qualify you for lower interest rates on loans or credit cards, making them more affordable. Good credit can even make it easier to rent a house or apartment. Not sure what kind of shape your credit is in? Start by checking your credit report and FICO^® Score^Θ from Experian to see where you stand.

Paying bills on time, paying down debt and minimizing your use of credit cards can help improve your credit score. You can also sign up for Experian Boost^®ø, a free feature that adds eligible rent, insurance, cellphone, utility and streaming service payments to your Experian credit report, which could help improve your credit scores and help you save more.