Want to know how to start saving money when you have none?
Saving money can be difficult at the best of times. But, when you’re broke, or your income is low, saving money becomes a whole lot harder.
Fortunately, over the years, I have discovered a few fast and effective ways to start saving money, without needing money.
A few years ago, I was on a quest to reach financial freedom. I soon discovered that I needed money to make more money.
The problem was, I was broke. I had no money.
So, I decided to find ways to start saving, so that I could invest in my future.
Your quest may not be the same as mine; we all have our reasons for wanting to save money.
However, the tactics I used can also work for you.
It may sound crazy, but in this post, you’ll learn exactly how to save money when you have none.
Things You Need to Know Before You Can Start Saving Money
When it comes to saving money, there are a few essential things you need to know.
Understanding these things we’ll help you to save faster, wiser and more comfortable.
Misconceptions of Saving Money
Whether they’re right or wrong, most people will have an opinion on saving money.
Growing up we learned many lessons on money, and it seems like everyone has the secret on how to save money when you have none. But, the truth is, most of the advice we receive is just not correct.
Here are three myths that need to I need debunk before you start saving money.
1. You Need Money to Save Money
This is not true. Just think about it, if you had money available, you wouldn’t need to save.
The truth is, the level of income you earn doesn’t matter. The more money you make, the more your monthly expenses will also rise.
That means even people who earn above the average US salary probably still need to save their money (just on a larger scale), and, in the beginning, they too most likely have little funds available.
There are many ways you can start saving money, even if you don’t have any; and you’ll learn some of the best ways in this post.
2. Shopping in the Sales Will Save You Money
I’m sure you have heard this before. Go bargain shopping! Buy when it’s on offer. Look for the reduced section.
Yes, you can make significant savings using this method. But be careful, this will often lead to you spending even more money than you anticipated.
That’s because sales are a trick that stores use to get you to spend more. Reduced prices & offers have a psychological effect which triggers urgency and a fear of missing out.
Yes, you will most likely save money on the sale item; however, you probably weren’t looking to buy the product before you noticed it was on sale.
Therefore even though you have saved money, you’ve spent more money.
3. Credit Cards Are Evil
People associated credit cards with evil debts with high interest rates. This could be the case, but only if you overspend and don’t pay off the monthly balance in full.
If you use them responsibly, credit cards can help you to save money in the form of cashback.
Popular credit cards, such as American Express, will reward you with points for using their card. You can exchange these rewards points for travel & hotel bookings; and Amazon gift cards.
Disclaimer: Credit cards are your responsibility. Read the terms on the credit card companies site before applying.
Understand Why You Need to Save Money
Before you begin to start saving money, ask yourself the question, for what reason are you saving money?
It’s easy to give up when you don’t have a clear goal in mind, but when you have a purpose, committing becomes a whole lot easier.
Of course, your answer will be unique to you.
Maybe you want to invest your savings, perhaps you’re saving for a new house, or maybe it’s an emergency fund for a rainy day.
Whatever the reason may be, it’s essential to be clear on why you’re saving.
Prepare Yourself Mentally
Saving money is not easing, especially when you don’t have money. If it were, everyone would have savings.
If you’re going to begin to save money, you’ll need to show commitment, dedication, and mental strength.
Are you prepared to forget about a few luxuries? Or, what about when your friends invite you out for dinner? Do you have the mental strength to stick to a budget?
Some people are strong enough to do so.
However, some people will find it super challenging to save money. If that person is you, ask friends for support.
Get your friends to hold you accountable for your purchases. Plus, by including your friends, they won’t invite you to expensive restaurants; as they know, you’re saving money.
Do you have unpaid debt? If so, you may want to consider prioritizing that before you start saving. Here’s why.
Most long-term debts have a hefty interest charge attached to it.
If you’re occurring high-interest charges every month, this will wipe out all your saving efforts.
Therefore it’s wise to pay down your debts, to lower your interest charges, before saving money.
Here is How to Start Saving Money When You Have None:
1. Start Saving Money Today
Many people think about saving, few ever do.
When it comes to saving money, the most significant mistake people make is not starting sooner.
Think of it this way, the sooner you start, the faster you savings with grow bigger.
In the beginning, if your income is low or your outgoings are high, finding the money seems impossible, which is why people rarely begin.
So, how can you save money when you have none?
The answer is simple; start with whatever you can; even if it’s only one dollar. This important step if to start.
Along the way, the saving will become easier and more comfortable.
2. Cut Unnecessary Expenses
If you’re serious about saving money, you will need to cut down on some of your everyday expenses. The more you need to save, the more extreme your costs will need to be cut.
To begin with, I suggest cutting the monthly expenses you can comfortably live without.
Here are a few suggestions:
- Netflix – and other monthly on-demand services. You can live without TV shows for a few months.
- ATM Fees – It may be convenient to pay the small fee, but’s it unnecessary, when a free ATM is most likely within walking distance.
- Fast Food – is another convenience you can easily avoid by cooking and preparing meals at home.
- Subscription Services – newspapers, magazines, and smartphone app subscriptions can go.
- Groceries – cut back on your monthly spend and switch to cheaper brand alternatives.
3. Automate Your Savings
“Pay Yourself First” – That is one piece of advice that rings true when it comes to saving money.
The thing is that it can be easier said than done. It relies on you to remember to transfer funds from your account each month.
Fortunately, there is handy technology available that can help us to complete this process.
Recurring Monthly Payments
With most bank accounts you can set up an automatic recurring payment which will allow you to deposit funds from your main account to your savings account. Ask your bank for more details.
Choose the amount that you afford to pay each month, and once it’s set up, the saving will automatically transfer for you.
I like this because, it leaves little room for excuses, as the money is saved as soon as you’re paid each month. Plus, you don’t even notice the money, it’s as if it never existed.
It’s a great way to avoid any temptation of dipping into your monthly wages before you get a chance to save it.
Round-Up to Those Pennies to the Dollar
This tool can help to boost your savings quickly.
This convenient service will round your credit & debit card purchases to the nearest dollar. You can then send the difference into a savings account.
For example; you spend $3.55 on a coffee; this will be rounded up to $4.00. The $0.45 difference will automatically be added to your savings.
Cashback Cards & Websites
Cashback is a great and easy way to make fast savings.
Before making any significant purchases, see if you can find any cashback offers.
There are tons of websites that you can register with for cashback deals. Some credit cards, such as American Express, will automatically give you cash back in the form of reward points.
4. Negotiate For Big Savings
“Go big or go home” – it’s time to go big with your savings.
Have you ever been told that if you want to save money, you need to cut back on even the smallest purchases such as coffee?
Agreed, cutting out coffee can save you money. The question is how much will you save?
The answer is not much, especially when drinking coffee is something we like doing.
For me, the small saving does not warrant the sacrifice of caffeine in the morning.
That’s why instead of cutting back on the tiny luxuries that make your day more enjoyable, go after big savings.
So, what are these big savings? Here are a few ideas:
- Cell Phone Contract
- Utility Bills
- Cable Bill
Here’s the thing, most people pay for these services every month but never think to negotiate a better deal.
The aim isn’t to cancel these contracts; the aim is to negotiate a better deal. You should be negotiating better prices with each of these service providers at least once a year.
Sometimes with a few simple phone calls, you can save hundreds (sometimes thousands) per year. Now, that’s what I call big!
Learn How to Negotiate
To pull off these huge savings, you’re going to need to step-up your negotiating skills.
The reason most people are not good at negotiating is that they’re scared of being rejected. But, the truth is, in this case, there’s nothing to be afraid of.
The worse possible outcome is the company says no, and you carry on paying the same as you already are.
Here is a simple step-by-step process you can use to negotiate a better first:
Step 1: First of all, do a bit of research. See if you can find competitive deals & prices from comparable providers. This will come in handy during the negotiating later on.
Step 2: Call your current provider.
Step 3: Be nice. Explain that you have been a loyal customer who always pays on time. And then, ask what offers they currently have.
Step 4: At this point, you can ask for a more competitive rate.
Step 5: If they say no, explain that you have seen better deals from their competitors. And ask if they can beat, or at least match, the competitor prices.
Step 6: If they are still saying no, explain that you are prepared to walk away from your existing plan. Here’s the thing, they will never actually cancel your contract without your final word. So, don’t be afraid.
At this point, most companies with give in to your negotiations as an attempt to stop you from leaving and going to a competitor.
Now rinse and repeat with your other subscriptions and contract providers. Within just a few minutes, you can save hundreds per year!
Suggested Read: How to Lower Your Monthly Bill
5. Start Being Frugal With Your Money
When it comes to saving money, I find that the frugal lifestyle is the best way.
Even when you have no money, you can always find creative ways to save money.
Suggested Read: How to Live Frugally and Happy
Here are a few frugal ideas which are worthy of a mention:
Create Instead Gifts of Buying
Birthdays & holidays can be expensive occasions, especially when you’re trying to save money.
The frugal way would be to make your own gifts & holiday cards. This is the most personal kind of gift you can give, plus you’ll have fun in the process.
I admit this can be a bit time-consuming, but you’ll save a small fortune.
Grow Your Own Fruit & Veg
Why pay for the fruit and vegetables you can easily grow in your garden?
You probably think that growing your own food is difficult, but it’s easier than you think.
Plus, you can make savings of up to $100 every summer. Not to mention the beautiful homegrown fruit and veg you’ll have on demand.
Suggested Read: Frugal Garden – How to Start a Vegetable Garden on a Budget
Host Dinner Parties Instead of Eating Out
A good social life is essential, but it can cause problems when you’re trying to save money. This is a simple, frugal hack that will stop you from spending money on trips to the theatre or restaurant.
By inviting your friends to your home for a dinner party, you’ll instantly become the most sociable friend ever, And, it is way cheaper than eating out.
Top Tip: To save even more money, suggest that each friend prepares a dish. A win-win situation for everyone involved.
Watch this video for more frugal ways to save money:
6. Find Coupons That Will Save You Money
If used correctly, coupons can result in considerable savings off your grocery bill – up to $110 per week!
Look for coupons in newspapers, magazines, and money-saving websites. Also, check the packaging of the products that you have already purchased. Brands often attach coupons to their products.
Caution: be careful not to fall for the marketing tricks of coupons. Only use coupons for items that you already intend on purchasing.
If you buy a product, just because you have a coupon available, you won’t be saving money.
Suggested Read: Tips From The Coupon Lady
7. Start Selling Your Things & Save The Profit
Do you want to save, but you have zero money to invest? Well, if you’re that broke it’s time to start selling some of those assets you have laying around your home.
Have a look around for items that you own, but you can live without. This could be an old laptop or smartphone. Or perhaps you own some books that you have already read. What about old clothes, shoes, and jewelry?
With a quick search, you’ll be amazed by what you can find. Sell these items online, and you’ll instantly free up some cash that you can put straight into your savings.
For more help on selling your old things, watch this video:
Bonus Tip: Make Extra Income & Save The Profit
How do you save money when you have none? Simple, make some extra money.
Instead of searching for savings in every possible situation, try focusing on earning some extra cash.
Consider taking on a part-time job to bring in some additional funds. The trick is to save any extra income you earn. You’ll start saving money in no time at all.
If you’re struggling to think of any ideas to earn extra income; or, if finding time is the issue, you can relax; there are tons of ways to you make money from home. Here are a few ideas:
- Start a blog
- Earn cash by using trustworthy survey sites
- Start a YouTube channel – Learn how to make money from YouTube
- Become a freelancer
- Make money by using social media – Learn how to make money on Instagram
Saving Money FAQ
I hope the above seven tactics will help you to start saving money today! Below is a list of the common question I get asked all the time. If you have a question, add it to the comments below, and I’ll reply as soon as I can.
How to Stop Spending Money?
For some people, to stop spending money can be extremely hard.
It’s no different from those who find it hard to stick to a weight-loss diet. It takes strong willpower and determination to quit something you enjoy doing.
Fortunately, there are many things you can do to help you to stop spending money.
Raise The Stakes
By adding an extra layer of pressure, you’ll be more motivated to stop. You can achieve this by publicly announcing your savings target, and by what date you want to reach that target.
You can also add a forfeit or a punishment if you don’t hit your target. For example; commit to doing an embarrassing dare in front of your friends if you fail to hit your target.
You’ll stop spending money in no time.
Adopt the 30-Day Rule
The 30-day rule is a tactic you can use to stop yourself from making unnecessary purchases.
Eliminate impulse purchases by giving yourself a 30-day window before committing to any significant purchase.
This will give you enough time to consider if you NEED to have that item.
How Can You Save Money Every Month?
Most people are paid every month. If this is the case, I suggest using method #3 in this article.
Automate your income, so that you save a sum of money as soon as you’re paid each month.
This way you don’t have to worry about saving each month, and you won’t miss the money.
How to Save Money Every Day?
Well, this is a different mentality from saving every month. If you prefer the satisfaction of saving every day, I suggest saving the pennies.
At the end of each day, throw any loose change you have into a money jar.
Small change will soon turn into huge savings.
Also, use the tips in #3 to automate rounding up the purchases you make using your credit or debit card.
How to Stick to Your Budget?
First of all, you need to make a clear plan with, with achievable targets.
It’s impossible to stick to a budget when you don’t know what your budget is. Figure out exactly how much you need to save and when you need to save it by.
Then you begin to figure out monthly and weekly targets.
Revise these targets regularly, and hold yourself responsible for achieving your goals.
Just like most things, sticking to a budget requires patience, dedication, and practice.
How Can I Save Money When I’m Broke?
If you’re completely broke, and you’re struggling to pay your bills, then it’s time for extreme measures.
Figure out how to drastically cut expenses, and use as many of the methods above as you possibly can.
Living a few months in an extremely frugal condition could be enough to kick-start your savings.
Remember, it’s not forever. The first few months will be difficult, but then things will get easier. You’ll thank yourself in the future.
Thank you for reading my post about how to start saving money when you have none.
Disclaimer: I am not a financial advisor. If you’re in financial difficulties, seek advice from a professional. The tactics and tips I share in this post are the same tactics I used to help me reach financial freedom.
Hopefully, now you know how to save money, but if you have any questions, feel free to leave a comment below.