Unconventional Ways to Save Money on a Low Income
Saving money in today’s world is a real challenge, especially when you have a small income. Many people find it hard to balance daily expenses and savings. Yet, developing the habit of saving is one of the smartest financial decisions you can ever make if you dream of achieving financial freedom.
A Lesson from My Grandfather
I once lived with my grandfather, a man whose life completely changed how I think about money. Imagine at 92 years old, he was still financially independent. He could pay for his medical bills and daily needs without relying on anyone.
As a curious young child, I asked him, “Grandfather, how have you managed to live comfortably without a big business or assets?”
He paused for a moment, smiled, and said, “When I was 20, I met a friend who told me only one word ‘Save.’ That word changed my life.”
From that day, he practiced the habit of saving for more than 70 years. He didn’t have much, but his consistency and discipline made him financially free.
1. The Forgetting Method
Also known as the “Save and Forget” technique, this method helps you resist the temptation to withdraw your savings.
When you save money, act like it doesn’t exist. Keep your savings in a separate bank account or a mobile wallet that you don’t use for daily transactions.
By making your savings invisible, you train your brain to operate within your real budget. Over time, you’ll notice that you’re living comfortably while your savings quietly grow in the background.
Example: If you save $20 weekly and forget about it for six months, you’ll have $480 saved effortlessly money that would otherwise be spent without purpose.
Learn more about the psychology of saving from Harvard Business Review.
2. The Salary Mental Reduction Method
This method works by tricking your mind into saving more.
Let’s say your monthly income is $500. Instead of budgeting with the full amount, mentally reduce it to $400. Plan all your expenses based on that smaller figure, and automatically save the remaining $100.
By adjusting your mindset, you learn to live below your means. This method builds discipline without feeling like a sacrifice. Over time, those small monthly savings will add up to something meaningful.
Learn more about living below your means on Forbes.
3. The Lock-Up Method
This involves locking access to your savings for a specific period, just like a fixed deposit. When you commit your money to an account you can’t touch for six months or a year, you remove the temptation to spend it impulsively.
Many financial institutions offer fixed deposit accounts or saving plans that pay interest when you keep your money untouched for a while. This not only grows your savings but also builds a strong saving culture.
4. The Envelope Budgeting Method
Though not from my grandfather, this practical method aligns with his wisdom. The envelope system helps control overspending by dividing your cash into categories such as food, rent, transport, and savings.
Once an envelope is empty, you can’t spend more in that category until the next month. This teaches you financial discipline and helps you see exactly where your money goes.
If you prefer digital solutions, many mobile budgeting apps now use the same “virtual envelope” idea to track spending. Learn more from NerdWallet.
5. The Reverse Savings Challenge
This creative method makes saving fun and motivating. Instead of saving the same amount every month, you increase your savings gradually.
Example: January – Save $5; February – Save $10; March – Save $15; December – Save $60.
6. The Skill Exchange Method
Saving isn’t only about storing money; it’s also about spending less by being resourceful.
If you have a skill such as cooking, tailoring, or computer repair, offer it in exchange for services you would normally pay for.
For instance, help someone with bookkeeping in return for free meals, or design posters for a local shop instead of paying for printing. This creative “barter system” allows you to save more cash while still meeting your needs. Learn more on Forbes.
7. The Community Saving Circle
Another unconventional way to save money is through group savings. In many communities, people form village savings groups or SACCOs.
Each member contributes a fixed amount weekly or monthly, and the total is given to one member in rotation. This approach builds accountability and makes saving a shared responsibility.
The Secret Behind All Methods: Discipline
All these methods rely on one key element: discipline. Without discipline, no saving method will work. You must commit to your plan, stay patient, and avoid unnecessary spending.
Even if you start small saving just $1 a day it’s the habit that counts. The earlier you start, the more financial freedom you will enjoy later in life.
Final Thoughts: Saving money on a low income might seem impossible, but it’s achievable with the right mindset and strategy. My grandfather’s story reminds us that financial freedom doesn’t come from how much we earn, but from how wisely we manage what we have.
Start small, be consistent, and watch your savings grow. You don’t need a high-paying job to achieve peace of mind you just need discipline, creativity, and the courage to begin.
Remember: “Saving is not a punishment; it’s preparation for a better tomorrow.”
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