15 ways budgeting tips for low-income families (save money)

budgeting tips for low-income families (save money)Savings are difficult for people on low incomes, either because they do not have enough after expenses or because they do not have the habit of saving. Nobody can ignore the importance of saving regardless of how they manage their finances. Everyone can save with discipline and financial planning, no matter how much they earn.

A famous person once said, ‘Savings give you the freedom to live life on your terms.’ In other words, be organized, plan well, and value your freedom. Find out how to save money even on a low income with these personal finance tips and strategies.

Budgeting tips for low-income families (save money)

1. Ensure that you save first

First, save, then spend. Put aside 20 % of your earnings for savings when you get paid before doing anything else. You’ll know how much money you’ll have by the end of the year by saving every month.

You should always save something for yourself, even if you have debts to pay. Emergencies are never planned. 

2. Always use the 50/30/20 rule

A 50/30/20 budget rule of thumb is a way to allocate your budget based on needs, wants, and financial goals. It isn’t a strict rule but rather a rough guideline that will help you build Financially sound budgeting tips

50% of Needs

There is no way to live without your needs, or at least not very easily. Examples include:

paying rentand buying groceries
and utilities, such as electricity, water, and sewer service
budget rule
budget rule

30% to Wants 

These are things you desire but don’t actually need to survive. They may include:

Going out to eatNetflix, Hulu, and other streaming services

20% to Financial Goals

This category covers two main topics:

Savings for retirement, saving for a house and setting up a 529 college savings plan come from pre-tax income (note that 401(k) contributions come from post-tax income)

3. Emergency fund

The future is never certain, so being prepared is always the smart choice. You should always have a start emergency fund to be able to deal with whatever life throws your way. 

Emergency funds
Emergency funds

You should make saving for an emergency fund one of your highest priorities. By saving just $25 a week, you can accumulate over $2,000 in an emergency fund in just one year. That amount can often cover repair costs or travel expenses. In addition to protecting you from high borrowing costs, an emergency fund can prevent you from going into debt.

4. Open a bank account (savings account)

It is impossible to save money if you have no bank account You can be tempted to spend all the money in your checking account, no matter how much there is. Transfer a percentage to a savings account whenever you receive your salary and don’t touch it.

Open Bank account
Open Bank account

5. Create a budget

Creating a budget is the best way to save money regardless of your income level. Make sure you do not exceed your budget for groceries, bills, personal care, etc. Make sure your budget is realistic.

6. Pay off your loans

pay off your loans Having debts, such as credit card debt, student loans, and others, can hinder you from reaching your financial goals. Make sure that you include a small amount in your monthly budget to pay off debt, and make sure that you pay off high-interest debt first. It takes such a long time to pay off the entire amount because the interest keeps growing.

7. Reduced car expenses

Owning a car is an expensive undertaking. You spend two hundred or even thousands of dollars on insurance, registration fees, car payments, routine maintenance, repairs, and gas each year.

Reduced car expenses
Reduced car expenses

8. Save money on food

Food expenses can consume all your income. Spending hundreds of dollars on food and drinks during a few nights out with friends is too easy. Prepare your meals in advance and save money. In addition to saving you money, cutting out alcohol is also unpopular advice.

Save money on food
Save money on food

9. Health should be your top priority

No matter what your budget is, your health should always come first. Your income can be lost if you have to stop working, and you will have to spend money on treatment if you become sick.

Get health insurance that covers the basic costs of preventative care and visits to the doctor. Most low-income people consider insurance an “unnecessary” expense. 

Health should be your top priority
Health should be your top priority

10. Make good habits a priority

You can also lose money by having bad habits and affecting your physical and mental health. You can damage your financial health by smoking cigarettes, playing the lottery, drinking, making impulse purchases, gambling, etc. It’s fun when you do it, but imagine the cost to your health and bank account.

11. Invest less in entertainment

It’s not necessary to pay for that Netflix subscription. Use free and low-cost activities to enjoy leisure and entertainment activities if you enjoy them a lot.

12. Choose a new bank

Every bank has its own policies and ways of attracting customers. You should switch banks if your current one doesn’t offer more benefits. Among the benefits are no maintenance fees, no ATM fees, no overdraft fees, and high-interest rates on savings accounts.

13. Carry a lunch

You can save money by packing lunches for your office and for your kids to take to school. Even though you’ll have to buy more groceries this way, the cumulative effect will still save you money every month. You will also benefit from homemade food if you prepare it yourself.

14. Reduce transport costs

Suppose you can walk or bike wherever possible to save money on transportation. You can both save money on gas if you carpool with a coworker. It’s also more environmentally friendly.

15. Buying clothes on sale

When you buy clothes at full price, you can spend a lot of money. Plus, you won’t need a certain item of clothing so urgently that you can’t wait and look around. Buy the same clothes during sales to save money and get them at a lower price. 


Good money habits don’t have to be discouraged by a low income. You can always save a little, no matter how little you earn. If nothing else, you’ve at least started. Thus, your income goals can be achieved, and you will become more financially secure in the future.


How should I budget when I have a low income?

It is recommended that you spend 50% of your income on necessities (rent, food, and utilities), 30% on wants (entertainment and dining out), and 20% on savings (contributions to retirement accounts and an emergency fund).

How does the 30-day rule work?

You defer all non-essential purchases and impulse purchases for 30 days when you use the 30-day savings rule. Take 30 days to think about it before you spend your money on something you might not need. 

When it comes to budgeting, what are the three most important things?

Which three categories make up a budget?
Needs. Living and working expenses include things like mortgages, rent, car maintenance, and other necessities. 
Wants. There are some expenses that do not qualify as needs and do not include your savings or payments toward debt. 
Savings.-saving is the most important part. Without saving, you do not survive to make a good budget.