Living on $1000 a month might seem impossible, but it is easier than you might think, and a lot of people are doing it. There are several reasons you might want or need to live on a limited income.
So, it is good to know how to do it. Even if you do not have to live on a tight budget, these ways to live on less money are great for anyone looking to build their savings account quickly. Couples just starting their lives together can get ahead by living on less money.
Plus, you can do a lot more with your money if you build a healthy savings account. For example, you can use your money to open your own business. Or, you can spend your money to travel. If you recently lost a job or you are welcoming a new member to your family, you might want to spend less on living expenses, as well. If you can make it by on a $1000 a month, you do not have to work as much, so you can spend more time doing things you love.
Living this way might seem extreme or miserable to some people, but there are plenty of people who live on limited funds who have fulfilling lives. Furthermore, it is a great way to gain an appreciation for everything in your life.
If living a more frugal lifestyle interests you, keep reading to learn the many ways you can stretch every dollar in your $1000 a month budget to the max. You will find that living on less is beneficial to more than just your bank account.
Coupon to Save on Almost Anything
Most people do not realize just how much they can save by using coupons. Coupons are literally like free money. You can use them on almost anything to save money, and that saving adds up.
Learning to coupon is the perfect way to cut down on your grocery bills, oil changes, and many other things you buy regularly. Plus, it is not difficult to use them. You just have to be organized.
Keeping a book with dividers to organize your coupons is a great way to keep them all in one place. Each time you get ready to make a purchase check your book for a coupon that will save you money.
You can also use couponing and store apps that allow you to clip digital coupons, as well. These apps make it super easy to search for coupons and access them on your phone.
Look for Free Things to Do
There are plenty of free things you can do. All major cities have a variety of free events and activities families, and single people can enjoy that do not cost you a dime. You can find a ton of websites that help you find free things in your area.
You can also enjoy spending time outdoors, visiting an arboretum, or community gardens. These are all places that are typically free to attend.
A lot of churches host free events for people in the communities they serve, and some even have workout facilities, elaborate indoor playgrounds, business centers, and more that you can enjoy without paying.
So, even if you are living on a tight budget, there are plenty of affordable or free things you can do that are entertaining and might also be more fun than activities you would typically spend money to do.
When You Need Furniture, Check On Free Sites
There are plenty of sites where people list their used items for free. You can find almost anything you need or want on these sites for little to no money.
You can usually find free items on sites like:
- Offer Up
- Next Door
- Let Go
- Craigslist
You can also post an ad for free on some sites with items you need. If someone happens to have what you are looking for that they do not need anymore; they will contact you.
Even if you are not living on a limited budget, you would be surprised at what you can get without paying a ton of money for new items.
Purchase a Cash Car
Purchasing a car with cash is one of the best ways to reduce your monthly expenses. When you eliminate a car payment, you take a lot of stress from yourself. Living on a $1000 a month is only feasible if you lower your overhead, and your car payment is one of the most expensive bills most people have.
Another benefit of paying cash for a car is that you can drop your full coverage car insurance and opt for more affordable liability only insurance instead.
The average American spends $499 a month on their vehicle loan payment and an average of $129 on insurance coverage. So, you can save more than $500 a month by owning your car outright.
Live with Your Parents Longer
If you are young and still living at home, you should strongly consider staying there for as long as possible. Most parents want their children to get a good head start in life. So, if you are working and saving your money, they will likely be happy to let you stay.
Rent is the bulk of most people’s monthly budgets. So, if you can reduce this significant expense, you are well on your way to living comfortably on $1,000 a month.
Get Roommates
If you are already living on your own, you can save a ton by getting a roommate. If you have several extra rooms in your home, this is an excellent option. You might even be able to make some money from renting rooms in your home that can help you pay utility bills and food expenses.
If you do not own a home and you want to save money on housing but living with a parent is not an option, consider renting a room. Renting a room in someone else’s home is usually less expensive than leasing an apartment. Plus, you can find a charming house to live in with great people.
There are tons of sites that allow people to look for roommates and post rooms for rent. So, if you are interested in going either of these, check them out.
Get a Reverse Mortgage
Reverse mortgages are not available until you are older than 62 years old. However, for older people, this is a great way to live on less money. Reverse mortgages have been around since Ronald Reagan created the program in 1987 to help older adults stay in their homes after they were not able to work anymore.
Taking out a reverse mortgage either reduces or eliminates your monthly mortgage payment. Some reverse mortgages even pay you a lump sum of money or a monthly payment each month until you pass away.
If you have family, they typically have a designated period to sell the home and pay the bank off or secure a refinance so they can keep the house after you are no longer alive.
While this might seem like a challenging route to take, for some people, this is exactly what they need to live comfortably on a limited budget in their older years. Furthermore, a lot of people report that they are happy with their decision to take out a reverse mortgage because it improves their quality of life.
Try Van Life or Living in an RV
Living in a van or RV might not be your idea of a luxurious life. However, it is a great way to save money on your living expenses. Plus, you can live more comfortably than you would think if you eliminate a lot of the things you do not need. The upside to this is that you are not paying just to house a bunch of extra junk.
Furthermore, many people like living in a van or RV because they can take their home with them if they want to go on a vacation. It is a great way to save when you travel too. Of course, you will have to pay higher gas bills, but you can always invite a friend to come along and split it with you.
Eat Frozen Foods
Food waste is a significant drain on your wallet. If you love to eat high-quality food, you might be tempted to eat meals you cook yourself at home. However, this is much more costly than most people realize.
Instead, opt for frozen foods and repurpose leftovers when you do cook at home. Trader Joe’s is an excellent place for getting delicious meals that are the perfect size for two people. If you live by yourself, you can bring leftovers for lunch the next day or eat them for dinner.
Plus, frozen foods stay good longer than fresh foods and veggies. So, you are less likely to end up throwing them away.
Eat Dinner with Friends
Sharing a meal with friends is a great way to spend your time and save money. You can alternate cooking at your house and having people over and then going to their homes. Doing this will help you reduce some of your food cost and the amount of food you throw away.
Eliminate Subscriptions
Subscriptions are a huge drain on your funds. Without realizing, you might be spending several hundred dollars a month on digital subscription services, including iCloud, Xbox Live, Netflix, Amazon Prime, and many others.
The average American spends $237.33 on these monthly bills. So, if you are falling into this trap, cancel them. You do not need all of these extra services.
Learn to Do Things Yourself
Instead of paying other people, try learning to do things you pay others to do yourself. Not only will you gain a ton of useful skills, but you will also save yourself money. You can do more than you realize, and you will quickly gain confidence in yourself by learning new skills. You might even be able to rack up some extra cash by providing your newfound skills to others.
Switch Your Cell Phone Plan
You likely spend close to $100 a month on your cell phone plan, but you do not have to spend this much money to have excellent service. If you are on a plan, you might be able to get the same service with the provider you are already with by switching to a prepaid plan.
All of the major cell phone providers offer an affordable option for people who prepay their bills. There are also some affordable carriers like Consumer Cellular that provide plans that are much less expensive than the major companies.
You can also save money by reducing the amount of high-speed data you have on your plan. If you have WiFi at home, you can use that connection instead of your cell data. So, you do not need as much high-speed data.
Switch Energy Providers
You are probably paying more than you need to for your electrical service. Your energy provider is one of the few utilities that you can negotiate with or chance. So, you are wise to shop around. You can also call your current provider and ask them if they can give you a better rate per kilowatt-hour, which will save you money on your monthly bill.
Repurpose Things
Instead of throwing everything away, try to repurpose things. There are multiple uses for most things, especially plastic and glass containers. You can even reuse shoe boxes to store items instead of throwing them away.
People pay a lot of money for these types of containers. So, using the ones you get when you buy things from the store is the perfect way to save. It is also better for the environment because it prevents a lot of waste from going into landfills.
Some of the many things you can repurpose are:
- Glass Bottles
- Plastic Tubs
- Shoe Boxes
- Clothing Hangers
- Candle Jars
- Twist Ties
- Extra Condiments
Potty Train Your Toddler
If you are a parent of a young child, you are likely spending money each month on diapers. You can save this money by potty training or using cloth diapers. So, this is an excellent incentive to getting your little one to use the potty.
It will also help you save money when it comes time to send them to daycare. Daycares charge a lot more money for kids that wear diapers. It is even possible to potty train babies who are under a year old. While they might need to continue wearing diapers, each one you save is more money in your pocket.
Trade Babysitting
If you have kids, daycare is a significant expense. So, it is excellent if you can save money on your child care. If you have friends who have kids, you might want to consider asking them if they would be willing to watch your child in exchange for you watching theirs.
It is often easier to take care of two children because they will entertain each other. So, you might find you can get more done by having a friend over for your little one to play with from time to time.
Both you and the other parent can benefit from taking turns caring for each other’s children. Do not be afraid to ask either; most parents will jump at an opportunity to have some free time, even if it means they will have to take care of your child from time to time.
Rideshare or Use Public Transportation
If you want to save money and you commute to work, ride-sharing or taking public transportation is a great way to reduce the amount of money you spend getting to work. It also provides you an opportunity to read a book or relax while someone else drives the busy traffic-filled streets.
Sign-Up to Receive Samples
Many companies offer samples to consumers. Doing a quick internet search, you can find a ton of companies that are willing to let you try their products for free. They will likely send you coupons toward your future purchases of their goods as well. So, that is an excellent way to try new things and save money at the same time.
Give Your Feedback
Giving feedback on products that you purchase is a good idea because many companies will compensate you. You should not only share positive experiences. If you try something and are not satisfied, let the company know. You would be surprised how many companies will give you a refund when you are unsatisfied with the products they sell.
Also, most grocery stores will take items back. So, if you get home and realize you bought something that is not good, instead of throwing the item away, bring it back for a refund or store credit.
If you are not happy with something, you should not have to take a loss on the purchased product. Yet, most people do not take the time to go back to the store and have them make the situation right. Or, they feel bad taking the item back to the store.
You should not feel bad, though. You are the customer. You deserve to be happy with your purchases.
Shop Health Insurance Plans
You might be paying too much for your health insurance. With the Affordable Care Act, there are some excellent options for people to pay less for similar coverage. So, if you are stuck with a high health insurance bill, you are wise to shop policies to see if you can reduce that monthly obligation.
Sell Things You No Longer Need
Holding on to things you do not need anymore is a waste of your resources. You can sell a lot of things in your home that are just collecting dust and even things you would otherwise throw away.
Selling things you are not using is a good way to make a bit of extra money if you have an unexpected bill come up or if you want money to do something that is not possible with your $1000 a month budget.
Work from Home
If you want to reduce your expenses, working from home might be the answer. Parents can save a lot of money on child care by working at the house. You also reduce the amount of money you spend on gas and parking each month. So, if it is possible for you to do your work at home, you should consider that option.
Shop at Resale Stores and Online Discount Sites
The treasures you can find at many resale shops are well worth digging through the racks. You can pick up name brand clothing in excellent condition at your local Goodwill store. You can also find plates, electronics, and many other items for a fraction of what they cost new.
You should also make it a habit of shopping around before you commit to buying big-ticket items. You can almost always find a deal if you are diligent about looking. You will also appreciate paying less for the same things other people are spending more of their hard-earned money to purchase.
Check Sale Racks and Clearance Sections First
You can find great deals and save a lot of money when shopping for items you need if you go to the sale rack first. A lot of people overlook clearance sections, but there are usually some exceptional items there. So, if you have to buy something new, check their first.
Check for Free Vet Services
If you have pets who need shots or medical attention, check to see if there are any free clinics where you can take them. You can also negotiate prices with the vet’s office. Let them know that you are living on a fixed income and ask if there is any way they can take less money or give you a discount. Some places have discounts if you fall into a specific demographic or category.
Look Into Government Assistance Programs
If you are going through a difficult time, there are government assistance programs that can help you until you get back on your feet. With a monthly income of $1000 a month, you will likely qualify for government help with groceries.
If you are a parent of children under three years old, you might also qualify for the Women’s, Infant’s, and Children’s Supplemental Nutrition Program known as WIC.
Parents caring for children are also able to apply for medical insurance coverage through the state they live in and obtain free or low-cost insurance for their kids.
Practice Negotiating
Negotiating is a skill that can take you far in life. It gives you the ability to spread your dollars and get more for less. Furthermore, many people expect you to negotiate, so they list items for higher prices to factor that.
However, negotiating is a skill a lot of people find challenging to master. If you want to live on less, though, learning to get things for a lower price will help you live within your means. So, do not get embarrassed to ask if the person is willing to go down on the price.
They will let you know what they are willing to do and you can go from there. If you cannot agree, there shouldn’t be any hard feelings.
To help you when negotiating, always have cash ready to pay the person on the spot. As the old adage goes, “a bird in the hand is worth two in the bush,” If the person sees that you are ready to give them money, they are more likely to consider selling to you for less.
Trade Items You Do Not Need for Things You Need
Trading is a great way to get things you need with things you already have. There are even TV shows that show how you can trade up. The idea is to start with something small and keep trading until you get something that is worth more money, and it works for a lot of people.
Keep Your Eyes Open
Speaking of trading, keep your eyes open on heavy trash day for items you might be able to use or trade. Some people make a living, loading up a truck or trailer with other people’s trash and selling it in their stores or at flea markets.
Of course, you need to be careful about what you bring to your home. For example, you might want to be wary of a mattress on the curb.
However, as long as you are not too desperate, you will probably find some decent things that other people are just too lazy to sell. After all, “one man’s trash is another man’s treasure.”
Some of the items that people commonly pick up on heavy trash day and sell are:
- Furniture
- Kids Toys
- Bicycles
- Appliances
- Luggage
- Artificial Plants
- Lamps
With so many great ways to save money, you will likely find that you enjoy living on less. You do not have to be cheap to succeed at living on $1000 a month, either. As you can see, there are many ways that you can give back to other people and help the environment in the process.
You have nothing to lose by trying to live on a smaller budget and a lot to gain. It is the perfect way to save for a down payment on a home, open your dream business, or just work less and spend more time enjoying the things and people you love.