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6 Saving Tips For Low-Income Earners
6 Saving Tips For Low-Income Earners
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Money Management

6 Saving Tips For Low-Income Earners

Money254
Eunniah Mbabazi
June 28, 2022

No one likes going broke. Money is a facilitator. Because of this, many people try as much as possible not to use all of their income and be left with nothing at the end of the month and save to achieve various goals that they have identified.

However, for some people, saving may feel like a challenge. This could be because your income is too low. Yes, your expenses take a significant chunk of your income, but you should not let your low income hinder you from reaching your savings goals. It would be best if you did not let your low income make you put aside your ambition to go on a vacation or save for a car.

However little your income is, it will be very challenging, but saving is still possible—even saving as little as Ksh50 periodically accumulates to a significant sum with time.

Setting aside some money for your savings as often as possible eventually develops a habit of saving that helps you in the long run.

Here are a few tips you could take up to help you save with little income.

Choose the Right Place to Save Your Money.

You have various options where you could put your savings. You could put them under your pillow or leave them in your current account. But there is another option—a better one. You can put your savings in an account that bears interest on your savings. And there are many to choose from also. 

There are fixed savings accounts, treasury bills and bonds, retirement savings accounts, mutual funds, and other investment options like real estate or stocks.

Where you choose to put your money is entirely up to you and your needs. All you have to do is do your homework on these vehicles to find one that suits you.

Read Also: Where Do I Keep My Savings? The 7 Main Places to Put Your Savings

Automate Your Savings Deposits

Many people, especially the salaried, get their incomes straight into their current accounts, then take it out and distribute the money according to their needs and wants. This could take a lot of time, and you may incur some charges associated with the transactions you will conduct.

Why not automate your transactions? 

If your employer is willing enough, you could discuss a plan to have your income cut and transferred to your savings account.

If that is not an option, you can discuss it with your bank account to see what plans they offer for this purpose.

Some of the pros of automating are that it saves time, is less stressful, and removes the temptation to eat all your money by giving you the remainder for your basic use.

Read Also: How to Boost Your Monthly Savings

Cut Unnecessary Expenses

If you are a low-income earner looking to save, you might want to look back at your expenditure. You can feel swamped with so many expenses, but some may be unnecessary.

How important to you is your high-quality Wi-Fi subscription than your goal to make a down payment for that piece of land?

Check your utility bill. You could use an electric kettle to heat your water instead of an instant heater in a bid to cut down your electricity costs. Use pail water instead of a shower head when taking baths to cut down your water bill.

Review your budget, look for the expenses you can do without, and cut back on them. You will have some money left to save at the end of it.

Read Also: Spending 101: Skills to Keep Your Spending in Check

Lower Your Housing Costs

One of the largest expenses that take up a huge chunk of cash on people’s budgtes has to be housing. Ideally, your housing should not go beyond 30% of your income. So if you earn Ksh30,000, you should not pay more than Ksh10,000 for your rent.

If you live in a house that costs more than 30% of your income, you should consider moving to a cheaper place.

If you live solo, there is no need to live in a two-bedroomed house for Ksh15,000 when a one-bedroom or a Studio apartment is going for Ksh10,000. That is a whole Ksh5000 bob saved.

It would be best not to live paycheck to paycheck trying to live Porsche.

Read Also: 15 Ways to Stop Living Paycheck to Paycheck

Look Out for Deals and Discounts

With the current challenging economic times, everyone is trying to use the least possible money to survive. To do this, people are going for good quality products but at the lowest cost. Start looking for good deals and discounts around you and you are sure to find some exciting deals.

Go to a supermarket, walk around check out what you need that has a discount on them. Leave, go to a different supermarket and do the same. By doing this, you would be doing your homework. You will also know the proper supermarket or marketplace to go to when you need a particular product with a discount or at a cheaper rate.

There are also seasons you could wait for if you want to get more large ticket items or products at a discounted rate. Look out for Black Fridays right around November. Many distributors put huge discounts on their products to get them to move fast. It would be wise to wait for this season.

Read Also: Mindful Shopping: How to Be Deliberate About What to Buy

Save First Before Spending

One thing that saving first before spending helps you to do is actually save! This will make sure that at no one point will you be tempted to forego saving, especially when things become a bit tough and you need to spend more than you usually would.

The only money you should have remaining is money you are supposed to spend without feeling guilty about using it.

Doing this at the beginning may seem very challenging and will require a lot of discipline, but it’s definitely worth it!

Read Also: Stability: How to Budget and Save A Lot Early in Your Career

Live a Healthy Lifestyle

You can save a lot by just living a healthy lifestyle. 

Wondering how?

Medical conditions and illnesses can be draining financially. And to make it worse, you cannot predict when these issues may arise. You cannot tell if you will be diagnosed with high blood pressure tomorrow, can you? Not to mention the treatment that comes at a cost you must incur to feel better.

Leading a healthy lifestyle will help you, in the long run, to stay fit and avoid frequent visits to the hospital. Be active. Do some exercises. Fill your diet with healthy foods and drinks and not cut on junk. Drink a lot of water.

Always remember that prevention is better than cure

Read Also: Family Health: Budgeting for Healthcare Costs in Kenya

Wrapping up

You might have so many responsibilities and too many expenses to take care of. But you have to remember that you need money even when you run out of your primary source of income.

It will be challenging, of course, and you will probably need a lot o discipline. But do not let that make you put off saving for your future.

Your why should be your motivation. Why are you saving? For what purpose? You have to think long-term. That way, you will be sure of getting that goal of yours.

So how about it mate? Will you give it a shot?

Eunniah is an experienced business writer and editor. She is also a published author with two titles under her belt; Breaking Down and If My Bones Could Speak. You can find Eunniah on Twitter @Eunnyversal

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