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Are you wondering, “How can I save money from my salary?”, this post is for you. I’ll help you learn how to save money on a small salary, so no matter your income, your savings can grow.
I think a big misconception in personal finance is that you have to earn a lot of money to be able to save money. And that is not true at all. We are living proof that you can save money, even on a small salary.
If you want to learn how to save more money on a small income, and grow your savings each month, this post is for you. Here are 7 ways to save more money on a small income.
How to Save Money on a Small Salary
My husband is a blue collar worker, earning a great income for us, but not large by any means. I used to work a respectable office job, though nothing that was earning us a very large income. And now I work for myself through this blog earning a decent full time income.
We are happy with our income as it affords us everything we need and more, but what has been the most beneficial to us is learning how to manage our income.
You always think if you just made more money, that you could save more and afford more things. That is simply not true if you don’t know how to properly manage your money.
I am pretty certain that we have more in savings (and our debt paid off) than many of our friends that make double or more what we earn. Since we have learned how to manage our money, and make savings a priority, we feel very confident about our savings, even if we don’t have large incomes.
And you can do the same! No matter what your salary or income, you can save money and afford more than you think. You just have to learn to manage your money well.
Here are some ways you can save money on a small salary:
Try one or more of these ideas to start saving money today, even on a small salary.
1. Look at your current spending.
Take a look at your last 3 months spending. You can view this in your online banking account, or your printed statements. Categorize your spending, and add up the totals for each category.
You may be surprised to find how much you spend on certain things.
Take a look at the highest categories and make a goal to lower those this next month. Any less money spent can be put in your savings account!
2. Cut any unnecessary subscriptions.
When you have your bank statements pulled up or printed, look for any monthly or weekly subscriptions you are being charged for.
Is there anything you aren’t really using or getting your money’s worth from? Cancel those ASAP and set up an auto transfer for that amount to go to savings instead.
Think: newspaper subscription, magazine subscription, audiobook membership, clothing box subscription, etc.
3. Try to lower your bills.
Bills can sometimes be hard to lower, but oftentimes you can find ways to lower almost all of your bills.
Can you get a cheaper cell phone plan like Tello?
Can you cancel or get a cheaper internet or cable package?
Are you really using your Netflix account?
Cancel and lower as many bills as you can, and transfer the money saved to your savings account.
4. Set up an auto transfer on pay day.
This is one of the easiest and best ways to save money, without even thinking about it.
Determine an amount you want to save each week (or however often you get paid), and set up an auto transfer on pay day (or the day after to make sure the funds are there).
This way, money gets saved without you having to remember or take the time to save it.
If it’s automatic, you won’t be able to make excuses why you can’t save any money this week. Start small, with just $10 or $20 a week, and increase it over time.
5. Save money from raises and bonuses.
This is something we always try to do, and I think it makes a big difference!
When you get a raise at work or a bonus, you may be tempted to live a little nicer, buy more things, go on vacation. But, if you keep living the way you are now like you never got a raise, and instead put the extra money or bonus straight to savings, you will see a great increase in savings without having to cut or lower any other expenses.
6. Try a no spend weekend.
A no spend challenge, set for a weekend or even as long as a month, can be a great way to halt your spending and save a good chunk of money.
Decide how long you want to challenge yourselves to not spend any money. You set the rules – can you buy groceries and gas only? Or nothing at all?
See how much you can save!
Related Post: 67 Free Things to Do on a No Spend Weekend
7. Cut your grocery bill.
One of the easiest places to save money is on groceries and food.
First, if you eat out several times a week, that is the perfect place to cut costs and save money. Try eating out one less time this week, and transfer the amount you would have spent to savings. Keep doing this until you are only eating out one time (or not at all) a week.
Then try cutting your grocery bill a little at a time. See what you spent last week, and aim to spend $5-$10 less. Keep reducing this until you feel comfortable with how much you are spending.
Read how to create a frugal grocery budget here.
Making a meal plan for the week, buying frugal groceries, and making simple meals at home is really all you need to save money on food.
Related Post: 31 Grocery Savings Tips
And if all else fails and you still want to save more, you can always get a side job! Here are some great side job ideas you can try.
Remember that every little counts, and anything you can save will get you closer to your goal. Don’t ever think there is no point in saving if you can only save a small amount – something is always better than nothing.
Those small savings really add up over time. I’ve had savings accounts where I saved just $10 a week and I couldn’t believe how fast the account grew! This really helps if you set up an auto transfer and don’t even think or look at it for a while.
I really love the idea of auto transfers if you have a set pay day. This way, the money is saved before you can even spend it. The work is done for you, and you don’t even have to think about it. Most banks will have an option to set up an auto transfer in your online bank account. If not, you can call or stop in at your local branch to ask about this option.
You really can save money pretty easily on a small income. It just takes a little effort, but once you know how to manage your money well you will see your savings grow and grow. And I think you will see you don’t have to make a lot of money to be able to save.
Live below your means, and you can save money faster and better than someone who earns much more than you, but doesn’t know how to manage it well.
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