No matter your income, saving money can be a difficult task. It’s often hard to save when you feel like every dime counts, and there simply isn’t enough. However, saving money is important for your financial security and shouldn’t be overlooked.

According to the United States Census Bureau, the median household income in the United States was $70,784 in 2021. With that said, many people live on a tight budget and are stuck trying to figure out how to save some cash.

The good news is that no matter your budget, you can still create a plan to save money. Here are some expert tips on saving money fast on a low income and how Accrue Savings can help you save for big purchases.

A significant part of saving money is understanding where your money goes. Creating a detailed budget will help you get a clear picture of your income and expenses. Knowing how much money you have coming in and how much you spend each month will give you a better understanding of your spending habits and help you make smarter financial choices.

When making a budget, start by separating your income and expenses into categories such as housing costs, utilities, grocery store trips, entertainment, and emergency fund contributions. Check your bank and credit card statements to see how much you typically spend in each category, and use that as a guide when creating your budget.

This will help you identify areas where you may be overspending so you can make changes accordingly. Budgeting apps like Mint or YNAB can help make the process easier.

The 50/30/20 budget is a great way to break up your income and expenses as it splits your after-tax income into three categories: 50% for needs, 30% for wants, and 20% for savings. This way, you can ensure that your basic needs are met but also have money to save and some left over for fun. 

Your spending habits can sometimes get out of hand — often without you even knowing it. To ensure that you stay on track with your budget, you should pay attention to every transaction. This means tracking your expenses and being mindful of what you spend your money on.

You can write down your expenses in a journal or use apps like Mint, PocketGuard, or Wally to help track your expenses. These apps allow you to connect your financial accounts and track your spending in real time to stay on top of your budget.

A savings account is essential to any savings plan — especially for those with a limited income. It should be separate from your checking account to prevent you from dipping into it when you have extra expenses. 

If the funds are in a different account, you’ll be less tempted to spend it. If your checking account and savings accounts are linked, you can set up an automatic transfer that will move a certain amount of money from your checking to your savings on your preferred cadence.

There are several types of savings accounts you can consider when setting up your account:

• Emergency savings fund: Essential for any financial plan and should cover three to six months of living expenses. The money in this account should only be used for unforeseen expenses or costs associated with an emergency.
• High-interest savings account: Can help you grow your savings faster by earning more interest than a standard savings account. 
• Accrue Savings wallet: This is an ideal account option if you want to save for a big purchase from one of Accrue’s partners — who will kick in a percentage of your savings goal as you save.
• Retirement savings account: Allows you to save money while taking advantage of various tax benefits. You can contribute to a retirement savings account through a 401k or an IRA, and the money you save will be invested for your future.

Debt can be a major roadblock when it comes to saving money. Having debt (especially high-interest credit cards, student loans, or medical debt) can prevent you from reaching your financial goals — particularly debts that accrue high interest. 

You must create a debt repayment plan and use strategic methods to help you pay off your debt faster. These include:

• Snowball method: Pay off your smallest debt first. Once the smallest debt is paid off, you move on to the next smallest debt, applying all the money you were paying toward the first one. This method can help build momentum and confidence as you start to make progress in paying off your debts.
• Avalanche method: Pay off the debt with the highest interest rate first. This method allows you to pay less overall interest and helps save money in the long run as it reduces the total interest you pay.

A debt repayment plan can help you stay focused and motivated to reach your personal finance goals. By setting a timeline and focusing on one debt at a time, you can quickly stay on track and eliminate your debts. 

Your regular expenses typically include rent or mortgage payments, utilities, food, transportation fees, and other living expenses. You may lower your expenses by finding cheaper living accommodations, carpooling, or using public transportation and researching the best prices for everyday items.

You can also examine your short-term spending habits: You may be surprised at how much money you can save by cutting back on small purchases! Let’s look at a few ways to help reduce these regular expenses:

Cut unnecessary subscriptions

Subscriptions can be a major expense if you’re not careful. It’s easy to forget about them and let them auto-renew every month without thinking about it. For example, having an Amazon Prime membership may be convenient for online shopping. But if you don’t use it regularly, you should consider canceling the membership and shopping at retailers that offer free shipping.

You should also look into subscriptions for Netflix or other streaming services, online gaming, clothing rental services, meal delivery programs, and any other subscription services you have. If you don’t use them regularly, consider canceling or opting for a cheaper subscription.

Eat at home

Meal planning can help you save money, time, and hassle. You can find weekly meal plans online that provide recipes for easy meals throughout the week. Some meal planning tools will even provide a grocery list of what ingredients you need to buy — which can save you a ton of time and money.

Eating at home instead of restaurants can also help you save money. When eating out, you pay for more than just the food. Restaurant meals cost more due to overhead costs like rent, utilities, and wages built into the menu prices. 

Another added benefit? Eating at home can be healthier, as it gives you greater control over ingredients and portion sizes.

Minimize transportation costs

Using public transportation is typically much cheaper than owning and maintaining a car. The costs associated with owning a car include registration, car insurance, fuel costs, and repairs.

If you own a car, consider carpooling with friends or co-workers to help split the costs. Walking or biking (if your destination is close enough) can also help you save money.

Look for promotions, discounts, and bargains before making purchases. Loyalty programs and websites are dedicated to helping you find the best deals, such as Groupon or RetailMeNot, for additional discounts.

Accrue Savings is a great resource for finding deals and saving money on planned purchases without going into debt. With Accrue, your savings are stored in an FDIC-insured account, and you can withdraw your funds at any time. By saving through Accrue Savings, you can earn up to 20% toward purchases from partners like Casper, Tire Agent, and Byte. 

A “no spending” challenge is when you commit to not spending money for a set amount of time. This could be for a day, a week, a month, or anything in between. 

You can only spend money on essential items such as groceries and bills during this period. This challenge helps you become aware of how much money you’re spending on non-necessities and creates an opportunity to put more money into your savings. 

Remember: Your no-spending period doesn’t have to be boring! You can find free or low-cost entertainment, such as going to the library, biking, volunteering, walking in nature, or joining a local book club. 

Setting up automatic transfers for savings and bill payments is a great way to stay on top of your finances. It eliminates the need to manually transfer funds each month, helping you stay organized and on budget. You also avoid late fees and other penalties with automatic transfers.

Automatic transfers ensure you transfer a certain amount of money into a savings account every month, helping you reach your long-term savings goals. It also prevents you from using that money for non-necessities. This helps you put more money aside for larger purchases like a vacation or car.

All banks are different, and some offer more perks for financial planning than others. Consider what type of financial services you seek, such as online banking, budgeting tools, and savings incentives.

Look into the fees associated with each bank and compare them to ensure you’re getting a good deal. Some banks offer free checking and savings accounts, while others may charge for these services. Read the fine print to know exactly what fees you’ll pay.

Consider the customer service offered by each bank. Do they have a phone line or online chat system to help with any issues? Are they available 24/7 or only during certain hours? Knowing the customer service offerings can help you make an informed decision and ensure you get the best service for your needs. 

Find a bank with special offers

Many banks offer incentives for opening a new checking or savings account, such as sign-on bonuses, cash back, and better interest rates. 

For example, some banks offer sign-on bonuses for opening a new checking or savings account. This could be a cash bonus or a percentage of interest earnings for a set time. Other banks offer better interest rates on savings accounts, which can help you maximize your savings over time.

Some banks also offer cash-back rewards for using their debit cards or online banking services. Many banks offer overdraft protection which can help you avoid unnecessary fees for accidental overdrafts. 

Budget billing works by averaging out the cost of your monthly utility bills for a year. This means you will pay the same amount each month, regardless of how much energy or water you use. This helps make budgeting for your monthly expenses easier and more predictable.

Budget billing is available through most utility providers, and it is free to sign up. To inquire about budget billing, contact your utility provider and ask if they offer this service. 

You’ll need to provide information such as your average energy or water usage and the monthly amount you want to pay. Your utility provider will review your request and let you know if budget billing is available. 

Reach your savings goals faster with Accrue Savings

Accrue Savings is the perfect tool for saving money for big purchases on a tight budget. Our service is easy to use and gives savers a quick way to set up and track short- and long-term savings goals. 

With Accrue, you can take advantage of special offers from our growing list of partners, helping you save even more! Visit Accrue Savings today, start saving money fast on a low income, and earn rewards when you buy from some of your favorite brands.