How to Save Money Fast on a Low Income

Taking care of day-to-day expenses can be really challenging on a low income. It also seems impossible to make significant progress with your savings account. It can become frustrating if you’ve set your financial goals such as putting down a house deposit or buying a car.

However, there are creative ways to save money and increase your savings fast while you’re earning a modest income. Read on some of these effective tips to help make this process easier for yourself.

Change Your Mindset

The first step in changing your savings trajectory is to change your relationship with money. This isn’t always an easy step to take, however, it’s important if you really want to discover how to save money fast on a low income.

Reading financial books, setting goals, creating a budget, and avoiding debt are part of the strategy in saving and changing your perspective about money. Ultimately, it’s about making a firm commitment to yourself, your family, and your bank account of not indulging in unnecessary purchases until your savings hit the next milestone. Take note that this next milestone is not your final goal. It’s unrealistic to just cut off all your leisure spending indefinitely until you reach your ultimate goal. It’s important for your long-term motivation to set milestones along the way, in which you can reward yourself as you progress.

Create a Budget

The key to fast-tracking your savings is working out how to make a budget. There’s a good reason why this advice appears in just about every post you can find on saving money. Without an actual budget, it’s impossible to track your savings goals, let alone achieve them. Depending on how your salary or wages are paid, you may choose to map your budget out weekly, fortnightly, or monthly. Either way, insert your income and all ongoing expenses like rent, bills, and groceries to see what your usual balance will be. From there, you can make the proper decision on where you might be able to save money or cut down on discretionary spending. Also, you might discover that the reason you’re struggling on a low income is due to the fact that you are simply not doing it right: not planning your grocery shopping, not knowing how to save on electricity bills, or not cutting your unnecessary subscriptions, etc.

So, here’s how to make a budget.

  1. First, think about how much you make each month, then subtract all the bills you know about and a 100 or so extra for the ones that could take you by surprise.
  2. Once you have done this, you should then halve the amount left and put that towards savings. Don’t worry if it’s a fairly small amount, every little will help in the grand scheme of things.
  3. The money in the account after this is what you have to spend on little luxuries. It won’t be a lot, and you’ll be tempted to crack into those savings.
  4. That’s why you should treat savings as a tax, a direct debit that leaves your account at the end of each month. That way, you’ll have no choice but to save.

Save on Household Bills

The next step you can take to cut back costs for your household is to search for better deals on your expenses. Speak with your electricity, water, and internet company to see what options they can offer you. They might even allow you to renegotiate your household bills. Some utility providers will offer payment plans for customers on low incomes. Aside from that, there are plenty of practical and creative ways to save money that you can do to reduce your expenses on many of your regular bills. Some of which can be found in this article Handy Tips to Save Money on Groceries to help in changing your money mindset and teach you how to make a budget.

Avoid or Get Out of Debt

If you are already in debt, sometimes taking out a loan or using your credit card is your only option. But debt avoidance can definitely fast forward your journey to financial freedom, so only choose these options when you really need to. And when you do, consider choosing an option that you can pay back quickly, such as a cash loan from Cigno.

Repayments can take a big bite out of the money you set aside for savings on each payday, so sorting out your debts and learning how you can get out of it is an essential step in getting your finances back on track. In fact, you may even be better off using any extra money to pay off debts early rather than putting it into your savings, just watch out for any fees for advance payments.

Earn a Second Income, Not Another Job

One way to save money fast on a low income is to earn more money in the first place. Of course, you can’t magically turn a low-income job into a high-paying gig overnight. But what you can potentially do is pick up a side hustle to supplement your pay.

You can easily and comfortably make a second income without having to get a second job. These can be very simple with the help of some second income ideas to get you started, such as:

  • monetising a hobby
  • getting cash back from money-making apps
  • selling items online
  • becoming an influencer
  • investing in real estate
  • starting a service business.

We hope these suggestions have helped you work out how to make a budget and how to save money fast on a low income. Just remember there are always options available to you, and some smart choices and small sacrifices can make a big difference in the long run.

Disclaimer: Please be aware that Cigno Loans’ articles do not replace advice from an accountant or financial advisor. All information provided is intended to be used as a guide only, as it does not take into account your personal financial situation or needs. If you require assistance, it is recommended that you consult a licensed financial or tax advisor.


Ordered by the Federal Court of Australia

The Federal Court of Australia has found that Cigno Australia Pty Ltd (Cigno Australia) and BSF Solutions Pty Ltd (BSF Solutions) have breached the law by engaging in unlicensed credit activity and charging prohibited fees.

In the period from July 2022 to 3 October 2023, over 100,000 consumers have been lent a total of $34 million, and charged fees of over $70 million, under the ‘No Upfront Charge Loan Model’ operated by BSF Solutions and Cigno Australia. At no time has either BSF Solutions or Cigno Australia held an Australian Credit Licence.

The Court also found that Mark Swanepoel (director of Cigno Australia) and Brenton James Harrison (director of BSF Solutions) were involved in these breaches of the law.

With effect from 24 May 2024, the Court has granted permanent injunctions preventing Cigno Australia and BSF Solutions from:

  • demanding, receiving or accepting fees or charges, including amounts of loan principal, from consumers in relation to credit provided under the ‘No Upfront Charge Model’; and
  • engaging in further credit activity pursuant to the ‘No Upfront Charge Loan Model’, including by entering into new agreements with consumers, for so long as they do not hold an Australian Credit Licence.

Cigno Australia was ordered by the Court to, by 5th July 2024, send written communications to consumers who between July 2022 and December 2022 entered into agreements with Cigno Australia and BSF Solutions under the ‘No Upfront Charge Loan Model’.

The Court will later determine whether (among other things) Cigno Australia and Mark Swanepoel ought to pay a pecuniary penalty in respect of this conduct, and whether Mark Swanepoel should be restrained from carrying on a business engaging in credit activity.

Cigno Australia, BSF Solutions, Mr Swanepoel and Mr Harrison intend to appeal the decision of the Court and have filed an application for leave to appeal. If the appeal is successful, some or all of the orders of the Federal Court of Australia may be set aside.

Where can you get more information?

Where to go for further support

You can access legal advice in your state at: Free legal advice –

If you are experiencing trouble with debt, or money worries in general, contact:

  • the National Debt Helpline on 1800 007 007 or online chat (9:30am to 4.30pm, Monday to Friday).

If you need someone to talk to, contact:

  • Lifeline on 13 11 14 (24 hours) or their crisis support online chat or
  • Beyond Blue on 1300 22 46 36 (24 hours) or their webchat