What's the Best Way to Save Money When My Income is Tight?
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When your income is tight, saving money might feel out of reach. Every dollar seems spoken for. Plus, unexpected costs can throw off your plans.
In Q1 2025, people in the U.S. saved around 3.9% of their disposable income.[1] That means for every $100 earned, about $3.90 went into savings. This was lower than the year before, which indicates that saving may have become harder for some households. It’s a clear reminder of why having a savings plan matters.
Even on a low income, it’s possible to build a savings cushion. It just takes a few smart strategies and the right tools to help you stay on track. Here, find small ways to start saving today. Learn how to manage your money when it’s limited and what to do when expenses outweigh income.
How To Save Money With Low Income
According to the latest data from the US Census Bureau, 12.3% of Indiana residents were experiencing financial hardship as of July 2024.[2] Saving money when funds are tight means working with what you have. You don’t need big lump sums, but you need consistent habits.
Even saving a few dollars a week can add up over time. Start with a separate savings account to keep your money safe and out of reach. High-interest savings accounts offer one option that can help your money grow faster than a traditional account.
If you’re not sure where to begin, try setting a small weekly goal.
Want to grow your savings faster? Explore savings products, including Money Market Accounts, CDs, and IRAs. If you’re not sure which one fits your needs, a Centier team member can walk you through your options.
You might also like: How Does High-Yield Savings Work?
Budgeting With Low Income
A clear budget can help you stretch your income and avoid surprises. When money is tight, focus on a simple system like envelope budgeting or zero-based budgeting. The goal is to give every dollar a purpose (such as rent, groceries, or savings) so that none of it slips through the cracks.
Start with the basics:
List your monthly income.
Write down all your fixed expenses (like rent, car payment).
Add in variable expenses (like food and gas).
Then, look for ways to reduce or remove costs that aren't essential.
Take advantage of financial calculators to figure out loan balances or monthly payments. Tools can help you make informed decisions and avoid falling behind.
What To Do if Your Income Doesn’t Cover Your Expenses
If your income just doesn’t stretch far enough, you’re not alone. First, review your budget to spot gaps or overspending.
Then, try these ideas:
Contact providers about payment plans or hardship options (utilities, loans, etc.).
Look for community resources like food banks, free childcare programs, or transit vouchers.
Consider a side hustle or gig work that fits your schedule.
Talk to a financial advisor at your bank for personalized guidance.
If you have debt, prioritize the basics like housing, utilities, and food before you put extra toward credit cards. And, don’t forget to check if you qualify for local or federal assistance programs.
More Tips for Saving When Your Income Is Tight
Once your basics are covered and your budget is set, look for small ways to save more each month. These simple habits can make a big difference over time, especially when money is tight.
You might also like: Saving Money at Home: 15 Money Saving Tips to Cut Costs
1. Trim Unnecessary Subscriptions
Look through your bank statements and credit card statements. Are you paying for apps, streaming services, or memberships you don’t use? Don’t forget mail subscriptions. Purchasing items as needed might save you more in the long run. Canceling even one or two subscription services can free up a little extra cash each month.
2. Cook at Home More Often
Eating out costs way more than cooking at home. Plan a few simple meals each week using low-cost staples like rice, beans, and frozen veggies. Cooking ahead saves time, too. If you need inspiration, the Indiana Farmers Market has a ton of great recipe ideas on their website.[3] Even one or two budget-friendly meals at home each week could help you save a lot.
3. Round Up Your Purchases
Some banks offer tools that round up your purchases and deposit the change into savings. It’s a simple way to build savings without noticing the difference. Over time, those small amounts really add up. To learn more, explore Centier’s Roundup savings.
5. Shop Smart
Look for discounts, use coupons, and compare prices. Buying generic brands can often save you money. Shopping secondhand from stores can stretch your dollars and you support a good cause. Look into thrift shops like Hearts in Motion Resale Shoppe in Schererville or Open Door Thrift Store in Aurora. Finally, plan ahead to avoid impulse purchases.
5. Set Up Automatic Transfers
If your pay is direct-deposited, set up a small automatic transfer to your savings account on payday. Even if it’s just $10, it builds a savings habit. Automating it can make it easier to stay consistent.
Recommended: Everything You Need To Know About Automatic Payments
Take Control of Your Finances with Centier Bank
When money is tight, saving may feel like a luxury. But, even small savings can help you feel more in control when a financial emergency rolls around. Whether you set aside $5 or $50 a month, it all adds up.
Building savings on a low income can be hard, but it’s possible. With the right tools and a steady plan, you can create a financial cushion that gives you peace of mind. If you’re ready to take the next step, talk with a Centier representative about your goals.
Sources:
[1] https://www.statista.com/statistics/246234/personal-savings-rate-in-the-united-states/
[2] https://www.census.gov/quickfacts/fact/table/IN/PST045224