How to Grow Savings When Income is Low

Nowadays, it has become the norm for people to save for everything. It could be a new car, or it could be for a deposit for a new home. However, more and more people are finding the cost of living to be high, and with so many financial commitments to meet, it can be difficult to put money away for a rainy day.

It can be difficult to save if income is low, but that doesn’t mean it’s impossible. Sure, there may be some changes you need to make along the way, but once you’ve tailored your budget in the right way, you should see your savings grow.


Don’t Underestimate Shopping Lists
Dont Underestimate Shopping Lists - How to Grow Savings When Income is Low
Whether we do our grocery shopping online, or in the store itself, there’s no denying that there is a slew of different offers that try to persuade us to part with our money. This is where having a shopping list can be helpful.

Going shopping without a list can mean that we’re probably spending more than we need to when it comes to the shopping, money that could be better used towards something else. It can be a good idea to write a list of necessities which will not only help us towards our saving goals, but also ensure that our budget is in check.


Don’t Over Commit
Don’t Over Commit - How to Grow Savings When Income is Low
When trying to get our savings in order it’s easy to assume that we must deposit a set amount each week or month. While there’s nothing wrong with making a few cutbacks to factor in the money we’re trying to set aside, we shouldn’t look to place ourselves in financial hardship.

Some weeks may be better than others, so we should only look to save money where it’s possible. Even if you feel the amount is rather small for a savings account, it soon mounts over the year.


Take Advantage of Services Offered by Your Bank
Take Advantage of Services Offered by Your Bank - How to Grow Savings When Income is Low
While banks can be seen as the ones who are looking to take our money away, the truth is that they offer some truly unique services that look to aid us in our saving goals. Although some banks may not offer the service, many will offer a service where your purchases are rounded off to the nearest pound, with the difference being deposited into a nominated bank account, which is normally held at the same financial institution.

For example, if you were to spend £5.20 on your shopping, the amount taken would be £6.00. The £0.80p difference is then deposited into your savings account. While it may not seem like a large amount in the interim, over time, you will be surprised at how much you save over time.


Seek Out the Best Interest Rates
Seek Out the Best Interest Rates - How to Grow Savings When Income is Low
While finding an account with a good interest rate would make us rich anytime soon, it certainly makes a difference when it comes to maximising your saving options when on a tight budget. The best interest rate may not always be with your current financial institution, so in some instances you may need to look to transfer from your current account to an external savings account.

If you’re unsure of where to start when it comes to finding the best interest rates, then why not use one of the many comparison tables available online. They can help compare accounts in a fraction of the time it would take you to carry out the task manually.


Cut Down on the Commute
Cut Down on the Commute - How to Grow Savings When Income is Low
While it’s a necessary expense, the commute to work can be expensive, especially with the distance some of us have to cover. However, this doesn’t mean that we should spend as much as we do.

If you currently pay for your ticket by the day, why not look as to whether any savings can be made by purchasing a monthly or annual pass. Similarly, if you frequently travel by bus, they may offer a discounted ticket that can be used for unlimited travel during the week.

If you travel by car, then why not see if your place of work has a carpooling system in place. Not only can it be healthier for the environment, but also easier on the pocket.


Try and Cut Down on Waste
Try and Cut Down on Waste - How to Grow Savings When Income is Low
Cutting down on waste can be tricky, especially if we share our house with a lot of little people, but it’s not impossible. Things like milk and bread may not seem expensive, but having to constantly replenish goods that have been spoiled can soon add up. Asking everyone to ensure that food is stored properly ensures that we are getting the best value.

The same can be applied to meal preparation. If we constantly serve up helpings that re too much, we are effectively throwing money in the bin. Of course, there will be waste at times, but doing our best to minimize it ensures that we are able to save more money in the long run.


Buy in Bulk, When Possible
Buy in Bulk When Possible - How to Grow Savings When Income is Low
While it may cost us more in the short term, buying in bulk can actually help us save money over time. This means that more can e deposited into our savings account as opposed to being spent in replenishing supplies.

Of course, there are some things that can’t be bought in bulk, but if you find that you’re forever spending money on toilet tissue and washing powder, then it may be more cost-effective to buy in bulk.

While we may not be able to save at the rate we would like, saving money where possible means there is more that can be set aside. Try not to be discouraged, as the starting period may seem a little pointless. However, once you have made a few adjustments, you will find that your saving endeavors soon gather traction.


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