How to Save When You're Broke

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Oct 14, 2024

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Saving money when you're broke can feel impossible. If you're digging for gas money in-between your cushions, saving money can feel like climbing Mount Everest. You're constantly trying to balance between your living expenses, paying bills, and simply having enough money to get by. However, even in a tough financial situation, there are practical ways to save money. Whether you're in California or anywhere else in the country, these strategies can help you get on track with your personal finance, build a savings account, and work towards your financial goals.

In this article

Master the art of budgeting

Budgeting is vital to effectively manage your money. It may sound like boring advice, but it’s basic financial for a reason. You need to have a clear overview of where your money is going. You can use a budgeting app like YNAB (You Need a Budget) or EveryDollar to streamline your finances. These apps help track your expenses, monitor monthly bills, and provide alerts when you're getting close (or going over) your spending limits.

By setting a monthly budget for categories like groceries, entertainment, and subscriptions (like Netflix or Amazon), you can reduce the chance of impulse purchases. If you're not careful, these small expenses add up, leaving you with little to nothing at the end of the month.

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Reduce your living expenses

Housing is the biggest expense for households. Moving to a less expensive home will cut your biggest expense. If that option isn’t available, consider finding a roommate or even temporarily renting out a room in your home. You could also ask family and friends if you could stay with them to save money.

As for how to save money on utilities, you can lower your electric bill by using energy-efficient appliances, turning off lights when you’re not using them, and unplug devices. Install a programmable thermostat to reduce heating and cooling costs. You may be able to negotiate better rates on internet or phone bills by contacting your service providers.

The average American spends nearly $1,000 a year on subscription services. Cancel any non-essential subscriptions you barely use and bank the money.

Save money on food

Food is a huge expense for most people. It’s also a category where it's easy to go over budget, whether by hitting the drive-thru or grabbing impulse buys in the checkout line. Your food expense is actually a great place to start looking to save—thanks to coupons and sales.

Grocery stores often have loyalty programs and weekly sales that can save you a significant amount if you plan ahead. Meal planning around sales and seasonal produce is another great way to reduce spending. When you make a meal plan for the week, only buy what’s on your list. Opt for lower price store-brand items—they're often just as good.

Coupons are not what they used to be. No more sifting through newspapers to save a few pennies. You can now use apps to clip and redeem coupons. You can also double up the savings when you combine manufacturer and store coupons. Apps like Ibotta or Fetch Rewards offer rebates where you can get cash back on groceries.

Use apps to automate your savings

There are several apps you can download to help you streamline your savings. For example, Acorns rounds up your purchases to the nearest dollar. Then it automatically invests the spare change, helping you save and grow your money with minimal effort. Chime works similarly, rounding up your purchases and moving the difference into your savings account automatically.

Don’t forget about savings apps, that can help you save on purchases you were already planning to make. Apps like Honey can help you find discounts while shopping online, especially on Amazon. Rakuten offers cash back on everyday online purchases. Taking advantage of these apps can help you save money with little effort.

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Start a side hustle

If your current income isn't enough to cover all your expenses, consider finding a side hustle to bring in some extra cash. Even a part-time job or freelance work can make a big difference—especially if you're trying to pay off student loans, credit card debt, or save for an emergency fund. Sites like TaskRabbit or Fiverr can connect you with quick jobs that align with skills you already have.

Avoid credit card debt

Using a credit card when you’re broke might feel like a quick fix, but it can just dig you into a deeper financial hole. If you can’t pay off your balance each month, high-interest rates lead to credit card debt that’s hard to escape. Instead stick to using cash or a debit card linked to your checking account to avoid racking up interest charges.

Manage impulse buys

Being broke can be exhausting. It can be tempting to want to buy a little treat here or there, just to get a small dose of dopamine. Resisting impulse purchases is crucial if you want to reach your savings goals. To avoid temptation, delete your saved credit card information from your online stores like Amazon or set a 24-hour rule before making non-essential purchases. This gives you time to reflect and decide if you really need the item.

If you’re struggling with swiping your card and overspending, opt for cash when you go to stores you know can be a problem for you.

Build an emergency fund

Even if you're broke, you need to have an emergency fund for unexpected expenses like car repairs or medical bills. Start small with $5 or $10 a week. Then, increase the amount as your financial situation improves or budget allows. An emergency fund provides peace of mind and prevents you from falling into debt when life inevitably throws you a curveball.

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The bottom line

Saving when you’re broke is tough, but it’s not impossible. With the right money management strategies, you can regain control over your finances. The key is to make consistent, small efforts toward saving, even if your financial goals seem far away right now. Start by taking small, actionable steps today—like budgeting, meal planning, and automating savings—and you’ll gradually see a positive shift in your finances. Even if you’re broke, these money saving tips will help you stay afloat and achieve financial freedom.

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Holly is a freelance writer who recognizes that there isn’t a one-size-fits-all approach to personal finance. She is passionate about entrepreneurship, women in business and financial literacy. When she is not working, she is testing out new recipes, tasting the newest Trader Joe’s finds or binging the latest true crime podcast. She resides in Utah with her husband, two daughters and dog, Max.

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