Saving money on a limited income might seem like an impossible mission—but it’s not. Many people believe you need to earn a lot in order to save, but the truth is, what you really need is a solid strategy and consistent habits. In this article, we evaluate some effective methods to save, even with a tight budget.
1. Monthly Budgeting: Your Starting Point
The first step to saving is knowing exactly how much you earn and where your money goes. Creating a monthly budget gives you full control over your finances and helps you identify unnecessary expenses. Tools like mobile apps or simple spreadsheets can help you get a clearer picture of your financial situation.
According to BBVA (2025), setting a budget is one of the most effective ways to start saving. It not only helps you organize your income but also allows you to set clear and realistic goals.
2. Automatic Savings: Out of Sight, Out of Temptation
One of the most recommended methods by experts is automatic savings. This involves setting up a recurring transfer from your main account to a savings account right after receiving your income. Even small amounts—saving 5% or 10% of your salary—can make a big difference in the long run.
This method reduces the temptation to spend the money since you never “see” it directly. Plus, it builds discipline effortlessly.
3. Daily or Category-Based Saving Challenges
Another useful technique is applying savings challenges, such as putting aside a fixed amount each day or limiting spending in specific categories. For example, you could commit to not eating out for a week or reduce your spending on coffee from cafés.
As mentioned on Alikafie (n.d.), these small changes may seem insignificant, but over time, they add up and produce significant results.
4. Motivation-Based or Reward-Oriented Saving
This method involves rewarding yourself when you meet your savings goals. You can set small rewards like watching a movie, taking a walk, or treating yourself—without breaking your budget.
Also, it’s helpful to link saving with a concrete goal (e.g., a vacation, emergency fund, or paying off debt). This gives your effort a clear direction and purpose.
5. Mixed Techniques for Better Results
Often, combining several methods is the most effective approach. As suggested in a strategy outline on Course Hero (n.d.), not all methods fit everyone, so evaluating your lifestyle, needs, and motivations is essential to finding what works best for you.
Saving money on a limited budget is absolutely possible when using smart and personalized methods. What matters most is not the amount but the consistency. Having clear goals, tracking your spending, and automating the process as much as possible are key steps that can positively transform your financial situation over time.
References
- Alikafie. (n.d.). Tips for saving on a limited budget. Retrieved from https://alikafie.com/consejos-para-ahorrar-con-presupuesto-limitado/
- Unknown Author. (n.d.). Outline: Saving on a limited budget [Document on Course Hero]. Retrieved from https://www.coursehero.com/es/file/232101351/Bosquejo-el-ahorro-con-presupuesto-limitado-Recuperado-autom%C3%A1ticamentedocx/
- BBVA. (June 13, 2025). Money-saving methods: The best techniques. BBVA Finanzas a la vista. Retrieved from https://www.bbva.es/finanzas-vistazo/ef/fondos-inversion/metodos-para-ahorrar-dinero.html
