How To Improve Your Savings On A Low Budget

Improve savings

Making money in today’s time can be a bit tricky, especially given how some expenses tend to be costly, and how saving can be difficult with all the bills we have to pay. Of course, this doesn’t mean saving has become entirely impossible. If you’re up for a challenge, you might actually be able to get yourself out of your budgeting conundrum and become a budgeting wizard in no time.

All it takes is a bit of good planning and consistency. Below are some key tips that may help improve your savings when on a low-budget.

Always remember that a lot of tactics that improve budgeting comes not just from a desire to save money, but from strict compliance with the budget. This is what allows a lot of people to develop good spending habits aside from saving money as well.

Improve Savings on Low Budget

The tips below will allow you not to only save even on a low budget but also develop good spending behaviour that could benefit you in the long run.

1. In Saving, The Plan Matters

According to the United States Census, the median income for people residing in the United States was $55,775 in 2015. This is how much the average person earns in the United States. If you find your income at that amount or lower, you might find it a bit hard to save any money due to the increasing costs of things around us. However, sometimes the ability to save money all boils down to how well we plan our budgets.

This means before you even go ahead with the tips below, you should be well aware of what you have and what you’re willing to change. Try to make a list of your income and all your expenses thus far. You should have a general look at your overall spending, and you should have a rough idea of what you need to change to improve your savings. This is where the rest of the plans come in.

  • For instance, making a menu for your weekly meals can be a great help when it comes to budgeting what you have to buy to the market. When buying food, try to opt for cheaper but healthier options such as the local market instead of the shopping mall.
  • If you know how to cook or have a garden, this can greatly save money as you can make the meals yourself instead of having to buy pre-processed food.
  • Try allotting money on a zero-sum budget, where every dollar you have gets spent on a designated need or want, and the leftovers will be “spent” on a savings plan such as a retirement or emergency fund.

2. At Home, Compromise Works

Outside debt, perhaps it’s the cost of housing that really cuts a lot from our expenses. Whether you are paying a mortgage or rent, utilities, upkeep, and repair housing can really take a toll on our savings. We can, however, try to lower housing costs or even rent given the right negotiation skills and leverage.

  • If you’re renting, try to talk with your landlord if there’s any way you can renegotiate the terms of your deal, or if you can do work for the apartment for a rent You can even ask if there’s a property manager position available, as some apartment building owners can give property managers a free apartment in exchange for their duties. If not, there’s always the possibility of looking for cheaper housing.
  • For the homeowner, try to constantly assess the kind of utilities you have to pay for and try to cut costs. This means avoid wasting water, keeping the thermostat low if possible, and keeping your lights off if you’re not using them. You can even try renting a space or a room in your garage as this can help give an alternate source of income. It’s also best to make sure your house is maintained, so you avoid repairs and try to avoid buying things that aren’t needed.

3. In Debt, Getting Out Helps

When we talk of debt, we know saying “get out of debt” is easier than actually finding efficient ways to do it. However, debt is a natural part of life, and we are perfectly capable of getting out of it given the right strategy. The most important aspect of getting out of debt is understanding what form of debt you have, what your interest rates are, and if you can keep up with paying your repayments.

  • Try to renegotiate your contracts for a lower interest rate if possible. Try as much as possible to avoid getting more loans to pay for your other loans, and try your best to be consistent with repayments.
  • You may consider wanting to talk with a financial professional on the matter, but if you’re finding it harder to juggle repayment schedules with your work, you may consider consolidating your loans into a single plan with a single interest rate. This can affect your total payment and interest rates, but this is a good option if you want to focus on a single plan.
  • If there’s any way for you to make more than one repayment, try to do so. You can try allotting your savings to get an extra repayment just so you could potentially decrease your time to pay. This, of course, can remove a huge amount from your savings, but removing debt can greatly help making your savings stay with you instead of having to go to other expenses.


The tips above would hopefully help you have a basic rundown of some key tips that may help anyone to improve savings even with a low budget. These could also hopefully prove that saving is possible even on a tight budget, and you may even be allowed to push your budgeting limits further and allow your budgeting goals to come to life.

Do remember however that if you’re looking for more specific tips that are related to specific numbers in your reports or your accounts, you might want to consider seeking the help of a financial professional that could help give a good background on your situation and elaborate on your possible approaches on the matter.

About the Author

Kathleen Foust offers a youthful take on the pieces she writes in her spare time. She is currently writing her next big law story. Kathleen keeps her mind healthy by constantly engaging herself with puzzle games. If you love chess, then she’s the girl to approach for a good match.

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