How to save 1000$ when you're living paycheck to paycheck

Raise your hand if you and your family are living paycheck to paycheck!

I can guarantee that you are 100% not alone friend! Did you know that in 2017 it’s estimated that roughly 78% of American workers live paycheck to paycheck to make ends meet and that 1 in 4 don’t set aside any savings each month (stats via prnnewswire.com)?

The reality is that for most people cost of living is expensive, we spend far more than we earn and we’ve accumulated enough debt that a good portion of our earnings are funneled towards debt repayment of some kind.

Saving money is hard work.

It takes willpower, creativity and a certain level of savvy when your income is barely or just enough to cover your bills, housing and other living expenses.

The good news is that it is actually possible to save money even if you’re living paycheck to paycheck.

How to save money when you’re living paycheck to paycheck

Saving money when you’re living paycheck to paycheck is a question of changing your attitude about money folks. Clearly the first step would be to apply some frugal living principles to reduce your monthly cost of living. But, in many cases that’s already being done and you’re still living paycheck to paycheck am I right? What then?

Well, instead of simply trying to allocate and shift your income around why not try to supplement it (even just a little- because every little bit helps right?) with the commitment that any supplemental income goes straight into savings?

I look at it this way, saving even an extra 20$ per week accumulated by selling stuff you no longer need, offering tutoring or cutting lawns accumulates fast when you consider that $80 per month will pad your savings account by $960 per year.

That right there is the start of a pretty solid emergency fund right?

This idea just takes commitment, creativity and the desire to explore other money making options to supplement what you’re already bringing in because sometimes what’s coming in consistently is just not enough to put anything away at all.

If you’re interested in finding a side hustle that you can do online from home have a look at this post – 35 legitimate side hustles you can do online.

A sample savings plan to put away at least $1000 in 12 months

Month 1

Choose a bank that pays you to open an account. Here is a list of 25 Banks that give you money for opening an account.

Deposit 5$ per week into your account. Cut out soda, brown bag your lunch, make your own snacks, meal plan, skip 1 or 2 coffee runs and make at least $5 happen. If you can manage more great if not you’re well on your way to the $1000 goal anyway. All it takes is a minimum of 5$ per week to put away $260 per year which is over 25% of of your $1000 goal.