How to Start Saving Money with a Small Income – Practical Tips That Work.

Living paycheck to paycheck is a reality for many people, especially those earning low or average incomes. Whether you're a teacher, a student, a boda boda rider, a mama mboga, or someone doing a side hustle, saving money may seem like a distant dream. But the truth is, you can start saving—even with a small income. It only requires a shift in mindset, discipline, and smart financial habits.

In this blog post, we'll dive into practical, no-nonsense strategies that will help you start saving money, no matter how small your income is.

Your mindset about money is the silent force behind your financial habits. It shapes how you spend, save, and even earn. Many people grow up with beliefs like:

“I’ll save when I start earning more.”

“Saving is impossible on my small salary.”

“Money is meant to be spent while you have it.”

“Only rich people invest or plan for the future.”

These beliefs are mentally limiting, and they keep you in a cycle of lack.

But here’s the truth: your income doesn’t control your savings—your mindset does.

Why Mindset Matters.

If you think money is hard to manage, you'll always feel broke. If you believe only big earners can save, you’ll spend everything you earn. Instead, start telling yourself:

“I can save something, no matter how little.”

“Money is a tool, not a source of stress.”

“Discipline is more important than income level.”

“I’m capable of growing my financial future.”

When your beliefs shift, your actions follow.

From Scarcity to Abundance

Many people operate from a scarcity mindset—a constant fear of not having enough. This causes panic spending, quick borrowing, and lack of planning. To escape this:

Focus on what you can do. Before you even talk about numbers, you need to believe that it's possible to save. Many people believe that savings are only for the rich. That mindset will keep you stuck.

Instead, adopt the mindset that saving is for everyone. Even if you earn Ksh 500 a day, you can save Ksh 50. It's not about the amount—it's about consistency and self-discipline.

2. Track Your Expenses Religiously.

Most people don't realize where their money goes. Small, frequent purchases—like airtime, snacks, daily matatu rides, or impulse buys—can drain your income.

Tip: For one month, write down every single thing you spend money on. Use a notebook, phone app, or Excel sheet. By the end of the month, you'll be shocked at how much goes to unnecessary things. This exercise opens your eyes to spending patterns you can cut back on.

Great! Here's an expanded section on "Track Your Expenses" with real-life examples that your readers can relate to. This helps make the advice feel practical and doable.

2. Track Your Expenses (With Real-Life Examples)

One of the biggest money leaks is not knowing where your money goes. If you want to save, you first need to become aware of your spending habits. That’s where expense tracking comes in.

Think of it as auditing your wallet.

Why It Matters:

You might think you have no money to save, but when you track every shilling you spend, you’ll be surprised. It’s the small, everyday things that quietly drain your wallet.

Examples of Daily Expenses That Add Up:

Total = Ksh 4,500/month

That’s money you could partially save or redirect toward more meaningful goals!

How to Track Your Spending:

Notebook method: Carry a small book and write every expense immediately after you spend.

Phone apps: Use apps like Monefy, Wallet, or Money Manager (available on Play Store).

Google Sheets: Create a simple table and update it daily or weekly.

Expense jars/envelopes: Use labeled envelopes or jars to manage cash—once the money runs out, you know you’ve hit your limit.

Tips to Stay Consistent:

Track everything—even the Ksh 10 sweets.

Be honest. You're not impressing anyone—this is for you.

Review your expenses weekly to see trends or habits.

End goal:

Once you know where your money is going, you’ll know where to cut, where to adjust, and where to save.

3. Budget before you spend.

Budgeting doesn't mean depriving yourself—it means giving your money a job. When you get paid, divide the money into categories like:

• Rent.
• Food.
• Transport.
• Airtime/data.
• Savings.
• Tithe/charity (if applicable)
• Emergency fund.
• Entertainment (yes, it’s okay to enjoy life—within limits)

Once you budget, discipline is key. Avoid the temptation to borrow from one category to fund another. If your budget says Ksh 3,000 for food, don’t exceed it.

4. Pay Yourself First.

This is one of the golden rules of saving: before you pay rent or buy groceries, set aside your savings first. Even if it's just Ksh 200, put it away immediately after getting your salary.

Treat your savings like a bill you must pay—just like rent or electricity.

You can save:

In a mobile money wallet like M-Shwari, KCB M-Pesa, or Airtel Money Lock Savings.

In a chama or merry-go-round

In a savings account or Sacco

5. Set Realistic Saving Goals.

Don’t just save blindly. Give your savings a purpose. Ask yourself:

Am I saving for school fees?

Do I want to start a business?

Am I building an emergency fund?

Do I want to buy land, a phone, or a fridge?

Setting a goal motivates you to stay consistent. It also helps you calculate how much you need to save monthly or weekly to hit that target.

6. Cut Back on Unnecessary Expenses.

When money is tight, you can’t afford to spend like everyone else. Here are some practical things you can do:

• Cook at home instead of buying lunch daily
• Use public transport or walk if possible.
• Buy items in bulk to save money in the long run.
• Share bills with roommates or family.
• Cut down on entertainment and outings
• Say no to impulse buying (especially during sales or on social media)

Ask yourself before every purchase: Do I really need this, or do I just want it?

7. Increase Your Income (Even Slightly)

Sometimes, the reason you're not saving is simply because your income is too low to stretch. So while budgeting and cutting back help, it also pays to find ways to boost your income.

You can:

Start a small side hustle (e.g., selling eggs, smokies, or second-hand clothes)

Offer services like tutoring, cleaning, or writing

Sell unused items in your house.

Do online jobs like writing, transcribing, or data entry.

Even an extra Ksh 500 a week can make a difference.

8. Automate Your Savings.

If you have a regular income, consider automating your savings so that you’re not tempted to spend the money.

For example:

Set a standing order from your bank to your savings account.

Use apps like Branch or M-Shwari to lock money automatically. Save with a digital chama that deducts a fixed amount weekly or monthly

Automation takes away the human error of “I’ll save later”—which often becomes “I didn’t save at all.”

9. Start an Emergency Fund

Life happens. Your phone screen breaks. You fall sick. Your child gets sent home for fees. If you don't have savings, you’ll end up borrowing or taking expensive loans. 

Start building an emergency fund—even if slowly. Aim for at least three months’ worth of expenses saved in a safe, easily accessible place.

10. Surround Yourself With Like-Minded People

It’s easier to save when you’re around people who encourage good money habits. Join a chama, savings group, or follow online content creators who teach about money.

Avoid friends who pressure you to overspend or mock you for being frugal.

11. Celebrate Small Wins

Saved Ksh 1,000 this month? That’s a win. Paid off a debt? Another win. Managed to stick to your budget for the whole week? Celebrate yourself!

These small milestones keep you motivated and remind you that progress is possible—even if slow.

Final Thoughts: Small Income = Small Future

Starting to save money with a small income is hard, but it’s not impossible. It’s not about how much you earn—it’s about what you do with what you have. The earlier you start, the more financial freedom you'll enjoy down the line.

So stop waiting for that “perfect job” or “big promotion” to begin saving. Start with the little you have. Be consistent. Be disciplined. And watch your savings—and peace of mind—grow.

What saving strategies work for you? Share in the comments below! And don’t forget to subscribe to my blog for more practical money tips.