How To Save Money On A Low Income
Small habits that can quietly help you save more money over time.
Ruth Odetola
5/21/20264 min read
Saving money on a low income can feel frustrating. One unexpected expense and suddenly you’re financially set back again, or trying to climb yourself back out of a financial hole.
And honestly, a lot of money advice online just doesn’t feel realistic when you’re working a normal 9–5, paying bills, trying to survive, and still wanting to enjoy life a little bit too.
I’m not someone pretending to have everything figured out. I’m just a regular full-time worker who realised that saving money became easier when I stopped relying on motivation and started building simple systems instead.
These are 3 habits that actually helped me save more consistently.
I also made a full video breaking these habits down in a more practical way if you prefer watching instead of reading:
The Problem
A lot of people think they’re “bad with money” when really they just don’t have a system.
Most of us try to save whatever is left at the end of the month, but let’s be honest, there’s usually not much left.
Then we try aggressive budgets, get tired after a few weeks, give up, then feel like we failed at saving. Repeat cycle every month.
I’ve done all of that before.
Why It Matters
Saving money on a low income is harder. There’s no point pretending otherwise.
But even small amounts saved consistently can reduce stress massively.
An emergency doesn’t feel like a disaster anymore.
You stop feeling like every payday disappears instantly.
And over time, those small habits can turn into investing, opportunities, and more freedom later on.
1. Save First Automatically
This is probably the biggest thing that changed things for me.
If you wait until the end of the month to save, life will usually spend the money for you.
Instead, treat savings like a self-tax.
The same way rent leaves your account automatically, your savings should too.
Even if it’s just £25 or £50.
Consistency matters more than trying to save huge amounts for one month and then giving up the next.
One thing that also helped me was actually seeing where my money was going. You don’t need some fancy spreadsheet either. Your notes app is enough.
When I started becoming more aware of my overall budget, I realised how much money I was wasting on random snacks and little impulse buys after work. I don’t perfectly track every single purchase, but I mentally track my budget categories and try not to go outside the amount I’ve allocated for certain things.
That extra money now goes into savings and investments instead.
The goal isn’t perfection. It’s building repeatable habits that benefit you over time, especially as your income starts increasing.
So building a system you can actually stick to is the most important thing.
2. Use Effortless Saving Hacks
This one sounds small but it genuinely adds up.
Things like:
Round-ups
Penny challenges
£1 saving challenges
They work because you save without really thinking about it. It’s more of a “set and forget” method that drip-feeds money into a savings pot throughout the month.
I see this as a great supplement to your main monthly savings.
I personally use the round-up feature on the debit cards I use regularly, so whenever I buy something, the amount gets rounded up to the nearest pound and the extra money goes into a separate savings pot automatically.
I also use the Monzo penny challenge, which is a simple way to save around £667 over a year.
I always recommend starting with something like this because it feels achievable and doesn’t feel as aggressive as some of the bigger savings challenges online.
I love these hacks because the money builds slowly in the background, so it doesn’t feel painful in the same way manually transferring a large amount on payday can feel.
And honestly, you’d be surprised how quickly small amounts stack up.
3. Separate Your Savings Pots
This made saving feel way less stressful for me.
Instead of one giant savings account, give your money different jobs.
For example:
Emergency fund
Sinking funds (holidays, gifts, wedding, home expenses)
Investing pot
When everything sits in one account, it’s easy to accidentally spend money that was meant for something important.
Also, whenever you take money out from one big general savings pot, it can feel like you’ve “ruined” your savings and need to replace it immediately because the purpose of the money wasn’t clearly defined in the first place.
But with separate sinking funds, when a bill or expense comes up, you already know exactly which pot that money belongs to.
That creates way less financial stress because the money already had a purpose.
Separate pots just make things clearer.
It removes that constant mental maths of wondering what money is actually safe to spend.
Bonus Tip: Avoid Lifestyle Inflation
This is the sneaky one.
A lot of people get pay rises but still somehow feel broke because their spending rises too.
Better salary.
More eating out.
More random spending.
Suddenly the extra income disappears.
I’m not saying never enjoy your money. Enjoy it. You work hard for it.
But every time your income increases, try not to increase your lifestyle at the exact same speed.
Use some of that extra money strategically instead:
Build your emergency fund
Invest
Learn skills
Pay off debt
Build another income stream
Think of it as helping your future self instead of spending all your extra income immediately.
Also, saving becomes much easier when the money actually has a purpose. Tracking progress, setting targets, and watching your savings grow makes the process feel more motivating instead of restrictive.
Final Takeaway
Low income makes saving harder, but not impossible.
The biggest thing that helped me was stopping the cycle of relying on motivation and building small systems instead.
You don’t need to do everything at once either.
Start with one:
Set up an automatic transfer into your savings account on payday
Turn on the round-up feature on your bank account
Open one sinking fund if you already have a savings pot
Start a penny challenge with a bank of your choice
At first it feels small and almost pointless, but after a few months you realise you’ve built habits that actually stick.
And that’s really what this whole journey is about. Small steps that slowly move you beyond the 9–5 mindset of just surviving month to month.
Tools I Personally Use
Monzo
If you want to try Monzo, you can use my referral link below and we’ll both get a cash bonus when you sign up and use your card 🎁.
(New customers only)
