Living on a tight budget can be tough, especially when everything seems to be getting more expensive. But don’t worry; saving money is totally doable! With some clever strategies, you can extend your budget, save up, and feel more secure about your finances. So, now you might be thinking about how to save money fast on a low income. Don’t worry; you are on the right page.
Let’s have a closer look at 14 practical money-saving tips for 2025.
1. Track Every Rupee You Spend
Whether you utilize a traditional notebook or apps such as Walnut, monitoring your spending habits is the initial step towards achieving rapid savings on a limited budget. You might realize you’re spending more on things you don’t need, like dining out or impulse buys.
Pro Tip: Set aside some time weekly to review your expenses.
2. Cook at Home—The Ultimate Money Saver
Eating out is convenient, but it can quickly eat into your budget. Cooking at home is a big win when you’re figuring out how to save money fast on a low income. Batch cooking is also a wonderful way to prepare for the week ahead.
Example: Skip the Rs. 50 tea every day and make your own chai at home. This small change could save you over Rs. 1,000 each month!
3. Create a “Needs vs. Wants” List
Make two lists: one for necessities (like rent, groceries, and bills) and another for things you want (like subscriptions, shopping, or eating out). Prioritize needs over wants. This simple trick will teach you how to save money fast on a low income by cutting back on unnecessary purchases.
Pro Tip: Always ask yourself, “Is this a need or a want?” Before buying something, give yourself 24 hours to think about it.
4. Use Cashback and Discount Apps
Smart shopping is all about using the right tools. Apps like Paytm, PhonePe, and Cred offer cashback on various bills and purchases. Check for discounts before buying anything, whether online or in-store.
Example: If you pay Rs. 1,000 for your electricity bill and get Rs. 50 cashback, it might seem small, but that adds up to Rs. 600 in a year.
Also Read: The Best Productivity Hacks Every Professional Should Know
5. Adopt the “10% Rule.”
A great way to start saving, even on a tight income, is by setting aside at least 10% of your income. So, if you earn Rs. 20,000, aim to save Rs. 2,000. Open a separate savings account to keep this money safe and avoid spending it.
Pro Tip: Use this savings as an emergency fund or invest in something like a recurring deposit (RD) for better returns.
6. Buy in Bulk and Save
Buying in bulk can save you a lot, especially for non-perishable items. Rice, pulses, and cleaning supplies usually cost less when you buy larger quantities. This is another great tip for how to save money fast on a low income.
Example: Instead of buying a 1 kg packet of rice every week for Rs. 50, buy a 10 kg bag for Rs. 450. Over time, that adds up to serious savings.
7. DIY Whenever Possible
One of the best ways to save money is by doing things yourself. Whether it’s fixing a leaky tap, styling your hair, or even doing your own beauty treatments, the internet is full of tutorials that can teach you how.
Example: A Rs. 500 haircut at the salon can be avoided by cutting your own hair with a pair of scissors after watching a few YouTube videos.
8. Plan Your Shopping and Avoid Impulse Buys
Before heading to the store, make a shopping list and stick to it. Shopping when you’re hungry or in a hurry can lead to overspending. Planning ahead helps you avoid unnecessary items and keep your budget in check, which is key when you’re learning how to save money fast on a low income.
Pro Tip: Shop during sales or look for seasonal discounts on essentials. Don’t fall for “Buy 1, Get 1” offers unless it is something you genuinely need.
9. Switch to Public Transport
If you’re driving or using cabs daily, it’s time to consider public transport. Monthly metro or bus passes are far cheaper than daily fuel or ride-hailing services.
Example: If a cab costs Rs. 300 per day, taking the metro for Rs. 50 can save you Rs. 250 daily, or over Rs. 6,000 a month!
10. Cut Unnecessary Subscriptions
Do you really need all those OTT subscriptions? Take a look at your monthly recurring charges and cancel the ones you rarely use. Consider sharing accounts with family or friends to split the costs.
Pro Tip: Review your bank statements to spot any forgotten subscriptions that you’re still paying for.
11. Embrace Minimalism
Having fewer things means spending less. Focus on buying quality items that you really need and avoiding impulse purchases. Decluttering your home can even help you find things you can sell for some extra cash.
Example: That unused treadmill sitting in your living room? Sell it online and use the cash to pay off some debts or add it to your savings.
12. Earn Extra Income with Side Hustles
If you’re looking to boost your savings, consider picking up a side gig. Freelancing, tutoring, or selling handmade items can add to your income. Use this extra cash exclusively for savings or debt repayment to see how to save money fast on a low income.
Pro Tip: Start small—tutoring kids in your neighborhood for just Rs. 500 a session can quickly add up.
13. Save Energy to Save Money
Cutting down on your energy bills is an easy way to save money fast. Turn off lights when not in use, switch to fans instead of the AC, and unplug appliances.
Example: Switching to LED lights could save you Rs. 200-300 every month on your electricity bill.
14. Shop Second-Hand
Why pay full price for new items when you can buy second-hand? Whether it is clothes, furniture, or electronics, platforms like OLX or local thrift stores offer excellent deals. Just make sure you inspect items before buying, especially with electronics.
Pro Tip: Don’t be afraid to negotiate the price, especially for second-hand items.
Final Thoughts
Having a low income doesn’t mean you can’t save money. With some smart habits and a little discipline, you can make your income extend further. By doing some simple things like cooking at home and using other money-saving hacks, you will soon be asking yourself how to save money fast on a low income. You will gradually realize you have got the answer. So, what are you waiting for? Make small changes today and watch your savings grow over time.
