Over 50? How To Save Money Fast on A Low Income? Start Here!

Last Updated onSeptember 15, 2021

piggy bank and post title How to save money fast on a low income

If you have no savings at 50 and want to save money fast on a low income, then this article is for you.

Many people want to fix their finances and get started toward creating a retirement. But they are overwhelmed at where to start. Your path to financial freedom doesn’t have to be complicated, but you have to start!

Cutting costs was the answer to regaining control of my finances and create good emergency funds. Now I am working toward saving for retirement.

SAVE MONEY. WHY IS IT SO HARD?

You get at the end of the month, and it seems like you run out of money way before you run out of bills!

What is the most effective strategy to save money fast on a low income? You may ask.

You need to save money to have money to pay of dept.
You need to pay off your dept to save for retirement.

All these things need to happen.

But there is specific order I did them in, that I find very effective. For paying debt quickly and start to save money fast.

P.S. I am not talking about people, that can’t do these things because of their circumstances. There is a small number of people that due to medical issues, disability issues that really can’t do a lot about their current finances.

But 95% of the rest of us CAN save money fast. And that’s for whom I am writing this post.

agenda with calculator

How To Save Money Fast on a Low Income?

Now you have to understand that it’s not one solution fits all. I mean one issue didn’t get you into this mess.

And didn’t get me in my mess ether. It was a multitude of issues.

It will take a multitude of solutions overtime to get you out.

But there are some things you can do quickly, that will help the most.

In my case, it was lowering the base expenses first.

STEP 1: LOWER BASE EXPENSE

And by the base expenses, I mean your housing, your vehicle, your utilities, and your basic needs.

It may mean spending a few thousand dollars to move to a smaller house in a cheaper neighborhood.

To cut my expenses I went to the bank and asked them to lower my monthly mortgage payment. Also, I don’t own a car and trying to live frugally.

Because when you are paying a lot into your basic expenses and you are trying to pay as much of your debt as possible, you have nothing left. And you start to feel like a failure. Running in a hamster wheel, and not getting anywhere.

One big incident, one big medical issue, one big bill that you have to pay can really devastate you.

STEP 2: ALL EXTRA MONEY TOWARD DEPT

Once you lower your basic expenses, poot the extra money toward paying your debt. This way you will pay it out faster.

I also started to hassle on the side, which allow me to earn extra money.

So instead of putting $100 a month toward paying my debt, I started to put in $400.

STEP 3: CREATE MORE MONEY TO FUND RETIREMENT

And this is an important point.

When you free up extra money by lowering housing expenses, selling your car, or cutting your cable need to go toward paying off your debt!

Committing to this process will help you to pay out your debt quickly and save money fast.

So many people will just step back, take a deep breath and relax. Now I can go out and eat, and start doing all those staffs, instead of putting that money toward the debt.

After you pay off your debt. Start saving the money.

Very few of us over 50 create extra money that truly can fund a good retirement.

We have to increase our income. Either your salary has to go up or you have to do something additionally to earn extra money.

RELATED: 17 creative ways to make extra money on the side after 50

And I know you feel tired all the time, the same as I do. But think what a mental strain of a financial situation absolutely adds to your exhaustion.

Having to deal with bill collectors, having to worry about money, having to figure out what you are going to pay or not going to pay is very stressful.

And you don’t realize it, because you get used to the stress.

Once you start doing things and see the progress, it actually energizes you.

START NOW! Do the things that going to help you.

Those things don’t just happen and if you get into the mind; “Oh I work so hard. I have been at it for a year. I deserve to go on a cruise.” You are going to hurt yourself.

Because once you start to spend your money in a way you used to, which got you into this mess, then you going to circumvent those retirement goals yet again.

And every day you are a day older.

“Thing is, we have no retirement savings, no IRA’s, no investments, etc. That is why I am working so hard to pay off the debts. Three years ago, I took over the bills, revamped the whole system my hubby had been using (which was not working), lowered our monthly expenses, and continue to say, “not yet, we have to pay off the bills when he wants to purchase something, go out to dinner, etc. I also say, “if we can’t pay cash, we don’t buy it.” No credit cards. The only time we use one is when we buy tires for the vehicles. Pay the bill off before interest takes effect.”

women pulling money out of brown purse

6 Reasons You Have No Money and Can’t Save Money

Even if you really try and you set aside some money the next thing you know there is an expense, or something happens, and it’s gone.

Financial gurus make it sound so simple.

There are numerous of things why people struggle to save money.

I want to go through the most common.

1. YOU DON’T KNOW YOUR FINANCIAL SITUATION

The people that struggle to save money, live beyond their means every single month.

And because they don’t use the budget. They just kind of ballpark it in there had, they usually underestimating what they are spending.

Most people are afraid to use budgeting because they are afraid that they will have to give up some staff. So, their mind resists setting up that budget.

But you have to commit to knowing your exact financial spot before you commit to doing something about it.

The first step in fixing a problem is to understand that you have a problem.

What does take control of your finances mean?

It’s when you know where your money is coming from and where it is going. And it’s using this information to create an intentional plan to use your money on the things that are important to you.

2. BEHAVIOUR PROBLEM

There is an emotional component to overspending. And you must deal with that emotional component before you make progress.

It’s not easy to live in this world that is so concentrated on personal possessions, but you can choose not to be part of this madness.

I do what I can and as well as I can, but I am not going to live the rest of my life in a state of stress.

“We tend to forget that happiness doesn’t come as a result of getting something we don’t have, but rather of recognizing and appreciating what we do have.” – Frederick Koenig

EXAMPLE 1: As we age, we don’t want to cook anymore, we don’t want to clean anymore. We don’t want to go to heroic effort just to cook a meal. So often what happens is we start to spend more money on taking out or going out to eat. (My current problem)

EXAMPLE 2: You use a lot of coupons to buy things that you really don’t need. Honestly, manufacturers create coupons to try and get you out of your normal spending habits to buy new products, or things that are really processed, or new soft drinks. Things you don’t really need or want. But they will give you a coupon to try to encourage you and change those buying habits.

STOP DOING THOSE BEHAVIOURS! And challenge yourself to do it for 30 days.

For example, if your habit is to go to the dollar store or always peruse the clearance ails at any store you at. Challenge yourself to stop that behavior for 30 days.

Any time you do something for 30 days it becomes a habit.

Once you really start to focus on the behaviors. Stopping yourself from buying things you really don’t need, buying things you really don’t want. Getting out of the mindset that “It’s a good deal” because it’s on sale, that will become a habit over time.

3. HAVE FINANCIAL GOALS IN FRONT OF YOU DAILY

If you want to break those financial habits that you had for years. You will have to create a new habit, how you want to be, every single day for a period of time.

You have to be committed.

Tape it to your computer at work
Put them in to your phone
Make them into your computer screen saver.

Put it where you will see it all the time. And remind yourself every day; “This is a new habit I want to create.”

4. FLAMBOYANT OVERCONSUMPTION

Dept is easy!

It’s easy to pull out that credit card and put the purchase on it. It’s not a big deal.

“I will pay it off.”

You know, credit allows you to overspend all the time.

You use credit all the time because you don’t have a lot of cash.

IF YOU DON’T HAVE ENOUGH CASH, YOU ARE OVERSPENDING!

5. FAMILY AND FRIEND’S PRESSURE

People that love you the most and want the best for you can sometimes pressure you into spending way more than you have.

Your friends constantly want to go out for lunch
Your friends constantly want to go out and shop

You have to talk to those friends. And it’s hard to talk about money, it really is.

But when you talk to those friends and ask for support. They will be happy to support you.

“That is a great goal. I wish I can get out of dept….”

And every time they suggest spending money beyond the amount you want to spend. Just remind them; “Remember I am really committed to this goal. Maybe we can do … instead.” They will get on board with what you want to do.

But you have to present that!

You have to talk about it. You can’t just say “No, No, No” and anger everybody.

6. SPENDING AS THERAPY

A lot of people use retail therapy to make themselves to fill better. But once you recognize that it can be happening with you.

And we all do this by the way.

“I deserve this new outfit. I had such a bad week.”
“I want to go out and have a nice dinner. I deserve it!”

Once you get in this mindset it should be your red flag.

STOP!

And say instead.

“I deserve to go out and have a great hike. “
“I deserve to read book.”
“I deserve to have a coffee on the balcony and listen to a music.”

There are many things we can do that will give us that sense of well-being. And a sense of happiness. And NOT afterward make you feel like a failure, because that’s what retail therapy does.

Think of these activities and make a list. Once you catch yourself wishing for retail therapy. Pull out this list.

The problem with living paycheck to paycheck is, that you don’t have money to put into emergency funds or retirement savings.

valet with money picking out

How Drastically Cut Basic Expenses

Some random ideas of stuff to cut if you need to slim down expenses temporarily to save money fast on a low income.

Don’t give up staff that brings you joy long-term!

How to use this list

You’re not going to be able to cut all of these things. The list is to help you remember some of your expenses so you can do one of two things – cut or reduce the bill.

It’s like an “ah-ha” moment.

“I forgot I was spending money on this so let me either cut it or reduce the bill.”

TIP: You should try to comparison shop to reduce your utility bill at least once per year because rates change.

But understand that if you have been this person for a few decades, it will be two steps forward and one step back process.

You have to constantly work at it.

Do you have any questions about “How to save money fast on a low income? Let me know in the comments!

Thanks for reading this article – I hope you found it helpful. As always, I’d love to hear from you! Have a fabulous week and take care! Irina Nikitina – Founder of Modern Fifty TV

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One Comment

Lilly says:
at
Give up your pets?? A Pet should be thought of as family, and shouldn’t be had by anyone who would get rid of them in any situation, esp. one like, Im paying off credit cards, so I had to cancel Netflix and drop off Spot and Fluffy at the shelter.. If you ever think you might be in a situation where you even THINK you could have to rehome/drop at a shelter your pets, DONT GET THEM TO BEGIN WITH…. THEY ARE FAMILY, not OBJECTS TO BE REMOVED IF INCONVENIENT
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