How to Save $5,000 in 6 Months On A Lower Income

Are you looking to give your savings a significant boost but unsure where to start? Don’t worry; you’re not alone.

Do you have an emergency fund? If you needed $1,000, $2500 or even $5,000 for an emergency bill such as medical expenses or car repairs, would you be able to cover it? 

Can you save $5,000 in six months even on a lower income? Yes, it’s possible. Here’s how!

15 Simple Steps to Save $5,000 Fast

This past year’s economic turmoil and hardships have shown us that being mindful of our money and having emergency savings is more prudent now than ever before.

While you may be wanting to save more money for a special expenditure, or just a rainy day, you may be wondering if it is easy to save $1,000, $2,500 or even $5,000 in six months if you are on a tight budget.

The answer is yes! Even if your family’s income doesn’t leave a lot of extra wiggle room, there are lots of small ways to save money. Here are some tips on how to save $5,000 in six months on any budget.

Small Amounts Can Really Add Up

While saving $5,000 may seem like an enormous goal, when you break it down into smaller pieces, it makes it more possible.

Here’s how to make this number more attainable even on smaller incomes. 

To save $5,000 in six months, you will need to save $833 dollars a month or just $27.40 per day.

This is less than the cost of most meals out at a restaurant!

If you have a family of four, this is just $6.85 per day to save per family member. 

You can absolutely cut this daily amount out of your spending, or find additional ways to earn some extra income without changing your family’s lifestyle.

Here is how to get started on your saving journey.

Review and Renegotiate Your Bills

When was the last time you reviewed your bills to see if you could change plans and pay less?

Some of the areas to take a look at are your insurance plans, your cell phone plan or other expenses.

Shop around online and see if there are cheaper alternatives out there and if your family would benefit by changing providers.

Can you save by switching carriers, refinancing your mortgage or reviewing the services you have? 

Recently by switching our cell phone plan we were able to save $68 a month and even add two more lines for the kids.

We were also able to cut a monthly service recently that cost $37 a month by finding a free alternative.

That is $444 a year we can pocket without missing a thing!

Don’t want to switch providers?

Call their customer care and tell them you’re thinking about canceling and see if they can provide you with a more competitive plan or rates.

All it takes is a phone call and you might be surprised on how much you can save.

Not sure where to get started reviewing and renegotiating your bills? The good news is that there is an app for that! Trim can help negotiate your bills, cancel unwanted subscriptions and more.

grocery store

Cut Costs on Groceries and Household Essentials

Do you know how much your family spends on meals as well as the daily items you need?

Daily necessities that your family uses such as shampoo, razors and toilet paper can really add up! 

If you’ve never tracked these costs, you might be shocked by how much they are costing every month! Here are some easy ways to save on these expenses.

Find ways to save on your groceries

Food costs can often be one of many families’ largest expenses next to rent or mortgage. However, the good news is, that it can be easy to save 20%, 30% or even more off the cost of feeding your family with just a little bit of planning.

Using coupons and money saving apps for groceries can offer large savings, and the good news is they are easy to use! Many coupons are now digital and if you have a smartphone, you can save money.

One common misconception is that there are only coupons for unhealthy, processed products.

This is absolutely untrue!

There are coupons and apps that can help you save money on groceries, even if you are following a healthy lifestyle.

This past week I was able to save over 70% on buying groceries that included turkey breasts, veggies, fruit, milk and cereal.

I purchased many items that my family loves, I just didn’t pay full price and I was able to pocket those savings to add to our emergency fund.

Check out this grocery list on a budget for suggestions on planning your shopping list. 

Keep a stockpile

Keeping a stockpile of food and non-perishable items your family needs does not mean hoarding. It just means keeping a small, and practical sized supply of products you purchased at the best possible price.

This saves you from paying full price, avoids unnecessary trips to the store and keeps items handy for when you need them, including emergencies. Our stockpile has helped us survive many unplanned job losses over the years and it also came in handy during the recent product shortages.

In addition to keeping at least a few week supply of items on hand, I also stock up when there is a great deal. I recently purchased razor gift packs on holiday clearance for the bargain price of $1 per pack. This gave us a year’s supply of razors for the cost of a normal priced package. Who cares that they are packaged in holiday packaging?

Cut costs on household supplies

If you could save hundreds or more on the daily items your family needs, wouldn’t you do it? Daily items that your family needs can add up to big expenses if you’re not shopping smart.

By couponing and using apps such as Target Circle, Ibotta and Checkout 51, I am able to purchase many products such as body wash, razors, laundry soap, vitamins and more for pennies on the dollar, or many times for free.

The key is to watch for deals and to stock up on these non-perishable items and have a supply on hand, so that you have enough to last until the next sale and can avoid paying full price.

Curb Unnecessary Expenses

If you pick up a daily coffee, did you know that your daily caffeine habit can be costing you as much as $1200 a year?

Why not learn to make a quality cup at home and take it with you in a travel mug? 

Grabbing lunch on the go? That lunch out could be costing you $1000 or more a year! Ordering takeout or dining out can add up to thousands of dollars a year more.

While you don’t want to deny yourself completely, cutting a majority of your family’s dining out costs can save major cash and also help you lead a healthier lifestyle.

We’ve found copycat recipes for many of our restaurant favorites that we can make at home. Ie here is how to make your Starbucks drink cheaper.

This way we can still enjoy our favorite meals, and save money at the same time.

Find ways to remove waste

Did you know that the average family of four wastes over $1500 on unused food every year?

The truth is that this waste can significantly add up!

By taking a look at how your family uses food and other products, it can reveal some major ways to save money. 

Make only what you need

While this may seem over-obvious, the truth is portion sizes in America are extremely larger than most other areas of the world. We have a tendency to cook and serve more than we need, and this often leads to lots of leftovers that may not get eaten and often get tossed.

I have cut back the amount of food I make for each meal and you know what, no one in our house even noticed! Instead of extra sides, large amounts of bread and huge main dishes, I focus on preparing just what I know will get eaten. This leaves very little left over at the end of the meal, and also leaves much less waste.

Find creative ways to use leftovers

Instead of leaving leftovers to spoil in the fridge or to go into the trash, find creative ways to put them to good use. Can those chopped veggies from salad night be frozen to go into a soup or casserole?

Can that leftover chicken breast make another meal by adding noodles and some veggies? One of my favorite food saving hacks is to chop up and freeze fruit just before it spoils. I have baggies in the freezer I add it to, and these make excellent and easy smoothies.

Check out these 20 Dirt-Cheap Meals Under $5.

Pick Up a Side Gig

If you’ve found every possible way to save, are there small ways you can earn a bit of extra income to help you meet your savings goals?


By picking up a side gig, you can earn an extra $100 a day for savings, or to pay those unplanned bills.

Wondering how you can do a side hustle even if you are working full time? There are lots of easy ways to earn extra cash in an hour or less a day.

Whether you find something to make money online, drive for an hour in the evening for DoorDash or Instacart, sell items online or do online surveys for extra cash after the kids go to bed, there are more ways to earn a little extra money than ever before.

Do you have furniture in your basement or attic collecting dust? Still have totes of clothes and toys that your children have outgrown? Why not clear the clutter and make some extra cash by cleaning out items you no longer need?

I regularly average $100 a month or more by selling items online or at consignment retailers. This is a great way to make a little extra money and also gives us some extra income to use towards the new things my family needs.

My tween has been selling his old books and toys that he has outgrown and made $200 over the holiday cleaning out his room of things that he no longer needs.

Not only did he make extra cash to buy a much wanted item, but I got a clean room as well which was a double win!

Use Apps for Investing and Cash Back

Are you taking full advantage of what you could be earning on the purchases your family is making regularly? In addition to apps that help you save at the store, there are also other apps that can help you earn money on the things you do every day.

While they may only save a few dollars or even just a few cents at a time, the overall numbers can really add up. Here are a few to try.

Invest With Acorns

Ever wished you could invest in the stock market if you had the extra cash? Acorns is a spare change app that rounds up your purchases and helps you invest your pocket change in the stock market without any work or effort.

Get Cashback When Shopping Online

While you may already get cash back from your credit card, did you know that you can get cash back from other money-saving apps as well?

One personal favorite is Rakuten. Formally known as Ebates, use Rakuten to earn cash back from shopping online. You’ll get a percentage back on every purchase and get $10 free just for signing up. 

If you are looking for ways on how to save $5000 in six months the good news is that it is easier than you think. By breaking down your goal and getting smarter about your spending, you can be on your way to savings in no time.

What are some of the ways your family saves? 

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