22 Fast Ways to Save Money When You’re Broke
Finding ways to save money when you’re broke is your best defense for stopping financial bleeding. When you are broke, the idea of saving money sounds impossible, but there are several real ways to do it. And the sooner you get started, the better it will be for your overall financial health.
1. Follow a Budget
Following a budget is the first step toward becoming financially independent. It’s critical to know your net income, track expenses, cut where you can, and work within your financial boundaries. Learning to create a budget that works for you is necessary for the rest to fall into place.
2. Open a High-Yield Savings Account
High-yield savings accounts offer significantly higher interest rates than traditional ones and are a better place to start saving money. Good high-yield savings accounts require little to no minimum deposit and carry no monthly fees.
They often have fewer withdrawal options with limitations on withdrawal amount. So, if you’re serious about saving money, this is a good place to start. Eventually, you’ll want to invest to experience higher returns.
3. Negotiate Bills
Negotiating your bills is one of the fastest ways to save money when you’re broke. Bills such as cable, streaming services, utility, internet, and phone often work with customers to prevent them from leaving for competitor services. Sometimes, they offer bundle packages that save you money on monthly bills, like internet and cable or home and auto insurance.
4. Automate Bills
After you’ve negotiated better rates, automate your bills. Automated bill payments save money by avoiding late fees and other financial penalties. Track your automatic payment schedule in your budget.
5. Set a Savings Goal
The best way to start saving money is to set a savings goal. Working toward a goal motivates you to achieve it, and the dopamine boosts when you accomplish it is worth it. Even when it feels like there is nothing to save, set a small goal and work toward it. Repeat until you can set a bigger savings goal, and so on. The practice will motivate you to find ways to save more.
6. Quit Bad Habits
Cut out bad habits that are massive money-wasters and terrible for your overall well-being. Besides the obvious alcohol and substance use, consider gambling, impulse purchasing, using food delivery apps, and online shopping habits.
7. Use a Budgeting App
Consider using a budgeting app to guide you through the necessary steps to save money while holding you accountable for your spending. There are various budgeting apps with different features highlighted based on your budgeting style—envelope budgeting, passive saving, etc.
8. Stop Using Credit Cards
Credit cards make it easy to splurge on impulse buys because the bill doesn’t come until later. However, if you don’t pay your bill in full monthly, you’re accruing interest on a new monthly debt, which makes saving money more difficult.
9. Become Financially Literate
Educate yourself about financial literacy by reading books and blogs, listening to financial podcasts, and watching free guides and tutorials on YouTube. It’s never too late to teach yourself what they never taught you in school. It’s necessary to grow into a better financial position in life.
10. Visit the Library
Visit the local library to reduce entertainment expenses. In addition to having thousands of books and audiobooks for you to listen to for free, many also have media libraries, games, hobby and sports equipment, and other resources to loan out.
11. Cook at Home
Start cooking at home. It’s no secret that dining out costs more than preparing home-cooked meals. However, the convenience of delivery apps and restaurants on every corner makes it challenging unless you prepare yourself.
Plan your meals before shopping and stick to a list. Eat before you go shopping to reduce impulse purchases. Meal plan so there are lunches for work and snacks prepared for when hunger strikes. Otherwise, it’s more tempting to order out.
12. Cut Back on Meat
Cutting your meat consumption is one of many ways to save money on groceries. Consume more fresh fruits and vegetables and fill up on whole grains like quinoa and whole wheat pasta. Shop at discount grocers like Aldi and Grocery Outlet.
13. Use Loyalty Reward Programs
Be sure to sign up for loyalty reward programs at grocery stores and any other place you regularly shop. Reward apps such as Ibotta are another way to save money when you’re broke. They offer rewards from major retailers such as Walmart, Amazon, Target, and Home Depot.
14. Embrace a Frugal Mindset
Adopting a frugal mindset means prioritizing spending on things that add value to your life — quality over quantity. Embracing a frugal mindset is a lifestyle change that makes resisting impulse buys more manageable. Saving money becomes second nature.
15. Eliminate Unnecessary Expenses
Track your expenses and cut unnecessary ones. Learn the art of denying yourself now so you can flourish later. That doesn’t mean you can never get a coffee or treat yourself to lunch. But exercise self-discipline by working toward your savings goal.
16. Shop Around for the Best Deals
Shop around for the best price before making purchases. Don’t be in a rush to spend money. It’s okay to take time to process and prepare for the purchase mentally. Read product reviews and any complaints before committing to the cheapest or most expensive options.
17. Increase Your Income Stream
Increasing your income stream is one of the quickest and most effective ways to save money when you’re broke. There are dozens of creative side hustles to help you make more money. You can also find success selling lightly or gently used items you no longer need on secondhand platforms such as Facebook Marketplace or eBay.
18. Buy Secondhand
Buying secondhand items is becoming a more ethical choice when shopping for many items and saves you money. Between thrift stores and secondhand marketplaces, you can find almost anything you need at a fraction of the price when buying new.
19. Cancel Subscriptions
Let’s face it. Once upon a time, streaming services were a cheaper alternative to cable. However, the business has evolved into multiple services that cost more than cable if you’re streaming them all. Cancel some of your subscriptions and any unused memberships to cut money on entertainment expenses.
20. Buy Generic
The amount of money people waste on food, clothing, cars, weddings, and everything else because of the brand name is repulsive. Did you know that hundreds of people on social media claim to have worked in factories where the exact same product is packaged into generic and brand-name containers? That means, sometimes, you are literally paying more for the exact same product. Save money and buy generic options instead.
21. Stop Paying for Convenience
How much money do you think you waste each month paying for convenience? It’s only a few cents here and a couple of dollars there, and the next thing you know, it adds up to a hefty bill. Stop paying more money because it’s convenient at the moment.
22. Eliminate One Spending Habit
Designate the money saved from that habit to transfer to your high-yield savings account automatically. Then, you’re not losing anything; you’re gaining a savings account. If you spend $5.00 daily on coffee, transfer that $150 monthly ($1,800 per year) into your account. You’ll build an emergency fund and save enough money to invest.
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Elizabeth Ervin helps people embrace a change in money mindset to achieve their financial goals. After struggling for a decade as a single mother, consumed by the American debt cycle, she recognizes the value of financial education and lifestyle changes and aspires to motivate others to make those changes to obtain financial freedom. She heavily advocates for praying about and over your finances and speaking positive money affirmations to manifest abundance.
