How to Save Money if Your Salary is Small?

Posted by Grace under Personal Finance on November 28, 2015

Learn how to save money if your salary is small. This is a practical ways on how to save money even if you only earn low income. Do you know that millions started with only little amount of money? Don’t underestimate the value of small money. If you will start saving money now even if it is only $1, $5 or $10 every month. These small amount of money will affect your financial future.

If you save $1 one dollar (which is very little amount) per day, you will end up with $5,817 in 10 years. That is if your savings is earning 10 percent interest rate per year.


If you will keep on saving little amount of money per day (say $5.00) that’s still small amount, you will have $29, 086 in 10 years. That is if your small amount of money was invested that earns 10% interest rate in 10 years.

Maybe you will say, “I can save $1, $5 or higher than that”. Now, if you are saving ten dollars daily that earns 10 percent interest rate annually, in ten years you will have $58,172.00

The issue here is not the amount. Even small amount of money can help you achieve financial independence. Now, how can you earn 10% interest rate for your money every year to receive those example computations?

How to Save Money if Your Salary is Small?

This is the most common excuse of many people why they don’t want to save and invest for their future. They keep on saying; “I am just receiving small amount of money each month”, “how can I invest if my salary is very small”, “my salary is not enough for me and for my family”.

The fact that you know that your income or salary is small, that should be the moment that you should decide to save and invest for yourself. Saving and investing can help you increase your income.

how to save money if your salary is small

Image Credit: Mroach On Creative Commons 2.0 via Flickr – Wallet

1. Save $1, $5 or $10 in the Bank

Every month or if you can make it everyday, save money in the bank. Once you saved $100, invest it in different types of investments like stocks, mutual funds, bonds, etc.

See Example of Future Value of Investment: $100 Per Month Investment Can Turn Into Thousands

2. Save Money for Business Capital

Other people became so successful because they know how to save. Most successful people knows how to save money. When they have enough savings, they use their savings to start their own business.

3. Have Self Discipline in Saving Money

To have a self-discipline, you must set a financial goal. Achieve your goal every month. Say for example, your target saving for the month is $50 and after 5 months you will have $250.

4. Save Money Automatically

You can save money if your salary is small automatically! How? Contribute to 401k plans. Before you receive your paycheck, you already save small portion of your salary.

Further Reading: Pay Yourself First

5. Spend Money on a Budget

If you have a budget journal, you will have the details on how do you spend your money. Sometimes, you will just found out that you bought the things you don’t really need. So, have a budget journal. List the things you need to buy before going to shopping malls. Also, budget journal can stop you from “impulsive buying”. (1)

Other Ways to Save Money for Low Income

Here are the other ways on how to save money for low income. “When you’re living on a small income, it can be especially hard to save money for things like an emergency fund, college, retirement, cars, or anything else.”(2)

  • Evaluate Housing Cost
  • Plan Your Shopping
  • Buy Used Stuff
  • Get a Programmable Thermostat
  • Don’t Use Credit Cards
  • Sweat the Small Stuff
  • Walk or Ride Your Bike
  • Find a Side Gig
  • Stay Out of Restaurants
  • Plan Your Meals
  • Get Rid of Cable TV
  • Use Coupons

Source and Citations:

You Can Save Money if Your Salary is Small

Saving small amount of money if your salary is small is challenging. You better watch out your emotions. You need to have patience in saving money especially if you are only saving cents. Don’t underestimate cents. Millions of dollars started with cents.

Train yourself to save money even it is only small amount. Think about this, how come can you manage more money if you don’t know how to save small amount?

I hope this money saving tips help you know how to save money if your salary is small? Any ideas on how to save small money for low wage earner? Share it in the comment box below!

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