One of the best things we ever did for our finances was to get one month ahead on our bills. It took years of sacrifice and living uncomfortably, but now we never worry that we will miss a payment because our bills are always paid at the beginning of the month.
But how is it possible to get a month ahead while living paycheck to paycheck?
Is it possible to save for a downpayment on a house? Or save for a new car? Or save up to take a trip? Or pay off those damn student loans??
How can you save if you are already on a tight budget?
This post contains affiliate links. Simply stated, affiliate links help me to earn commission when you make a purchase. This costs you nothing and I promise I will only share links that I believe are truly valuable to you. For my full disclosure you can click here.
Step 1: Set up a realistic budget
First, it is important to set up a realistic budget so you know exactly what you are saving for.
I can’t tell you what your budget should include but I can tell you that you need to be honest with yourself. Don’t leave out things like entertainment and spending money.
The first step to setting up your budget is to write out every thing you normally spend your money on.
If you stop for coffee every morning write that into your budget.
If you buy new clothes once a month write that into your budget.
If you like to go to the movies every week write that into your budget.
Do not limit your budget to bills and necessities because you will break your budget and you will feel discouraged. There will be time to cut back on these things later.
Include things you spend on less frequently in your monthly budget and “cash flow” these. Some things you may consider: annual dues or registration, Christmas gifts, vet expenses, etc. Break these things down over a 12-month period and set that money aside, that way you avoid any big, unplanned expenses.
If you start to see your budget surpassing your monthly income it’s time to reassess your needs and scale back. It is important not to understate or overstate your monthly expenses. If you are unsure of what you spend, look back on the last few months bank statements.
Step 2: Find ways to save
Now look over your budget. Are you able to make some sacrifices to save a little extra toward your goal?
Here are some of the things we have done over the past years to free up some funds in our budget:
Have a no spend month – cut all non-essential shopping, make your coffee at home rather than hitting Starbucks, do your own mani-pedis, stay away from stores where you’re inclined to spend.
Skip social events – A night, or day, with friends can easily run you $20-$50 or more and when you’re doing frequently it can add up. Invite friends over for coffee, meet up at a park while the kids play or suggest a dinner party at one of your houses.
Cook at home – We have been budgeting for so long that I am always surprised when people tell me they don’t always cook at home. When we are behaving on our budget we get pizza once a week and otherwise we grocery shop and cook at home. Plan ahead and be sure to include breakfast and lunch.
Save on groceries:
- Shop with a list. The most important thing you can do is shop with a list and stick to it. If you’re following the above tip, plan out your meals for the week and check what you already have and what you still need. Include some snacks and some backup plans – maybe a frozen pizza – for the inevitable night you don’t feel like cooking.
- Clip coupons. But be careful not to buy things you wouldn’t normally buy just because there is a coupon. Check your Sunday papers or search online on sites like coupon.com.
- Shop around. Aldi is a great money saving grocery option. If you don’t have an Aldi near you check out your local stores to see if there is a significant price difference. We have a few major grocery stores near us and one chain is always drastically higher than the others for the same or similar items.
Cut cable – Call or chat online with your cable provider. See if there is a more affordable plan or if removing cable from your plan can save you some money. If you already have Netflix or Hulu or Prime, stick with those until you get ahead. If you don’t use those services yet, compare the cost of them with the cost of your cable and make sure you are saving by making the switch.
Cancel Netflix or Hulu – On a similar note, if you already use a streaming service could you cut them for a month or two to help you save? They’re not a huge amount but if you add them up with all of the other ways to save they can still help get you there quicker!
Quit the gym – If you are not using your gym membership and/or you have an alternative option – apartment gym, home workouts, friend to walk with – consider cancelling it. You may be able to put a freeze on your account while you work on your savings goals, usually for a few dollars a month, and then can reinstate it when you’re ready to get back in there.
Keep the Change – We use cash for our budget and one thing I really like about it is that we always have change in our wallets. Every time I come home with change I drop it right into a change jar. We also have our bank account setup to round the difference to the next dollar spent and transfer it into our savings account. A little bit adds up.
Step 3: Make more money
Ok, what if you’re budget is already as pared down as can be? That’s often where I found myself. We have been budgeting for so long I had already sought every avenue to limit our expenses.
For us, expanding our income by even the smallest amounts here and there would add up significantly.
These are not get rich quick schemes – if they were I would be getting rich telling you how to do it.
You are going to need to invest some time into these. If time is something you struggle with stay tuned in the coming month for some tips on finding more usable time and making the most of it.
Some of these things will take a little investment. If you are already living paycheck to paycheck or want to speed up saving to get a month ahead on your budget this may not be the best option for you right now. Save it for later when you’re in control of your finances.
Find a side hustle (or in some cases, a hustle)
If you would like to read about the side hustles that have worked best for me, you can check out this post. While those are a few of the income streams that stuck for me, I have also tried many others. Here are some suggestions that you may be able to try to earn additional income:
Work overtime if it is available
Babysit, pet-sit, house-sit, plant-sit…do it for people you know or try sittercity.com or rover.com to safely find jobs as a babysitter, dog walker or pet-sitter.
Rent out a spare room on AirBnB
Deliver for Postmates
Drive for Uber or deliver for Uber eats
Shop for InstaCart
Deliver for Amazon – more opportunities near the holidays
Deliver pizza
Use websites or apps for shopping and surveys
- Scan your grocery receipts and earn gift cards to Target, Walmart, Amazon and more with Fetch Rewards. It’s not cash in your pocket necessarily, but I’m sure you will find a retailer you shop regularly to redeem your points! Use this link for $2 to get you started.
- Inbox dollars offers several ways to earn money – but most are pennies at a time and with a $30 cash out it will take you a little bit to get there. But I have been able to cash out twice since using this service so that’s $60 I didn’t have before using it! You can earn by playing games, clipping coupons, taking surveys, clicking links in emails, watching videos, even searching online. You can click here for a $5 signup bonus.
Work-from-home online
- In a world post-C, many workplaces offer remote options. It’s possible to find part-time work to supplement your income.
Tutor or teach a class
Sell your skills on Fiverr of Upwork.com
Find Craigslist gigs If you can sift through the “adult model wanted” posts you may find some tasks you can do on the weekend. You may find services such as cutting lawns, handyman work, house cleaning or shoveling snow.
Be creative – These require an investment and time
- Open an Etsy shop. If you are crafty this is a great option. I have made money selling homemade crafts in my Etsy shop which has been a great way to turn a hobby into a side income.
- Start a blog or vlog. There is no way to get rich quick on a blog, no matter what people say. It takes work. But in the long run it can really payoff if you’re willing to put in some time, investment, consistency and research. If you’re ready to set up a blog I can walk your through the steps in this post.
- Try photography. This is another one that will take time and hard work, but if you enjoy photography and want to work toward a career in it, it would be worth investing in the right tools and creating a business. Many creators start with just their phone and are able to create photography that can be sold on stock photo websites.
Apply as a freelance writer for websites or blogs – Upwork is a great place to start looking for jobs
Write an ebook and sell it
Sell stuff – My favorite
- Sell clothing on Poshmark. I have made over $3,000 selling clothes on Poshmark. I suggest asking friends or family if they have items they’d like you to help sell and split the profit! You can find a post about how I use Poshmark to downsize and make money here. And if you sign up through my link here you’ll earn a free $5 shopping credit.
- Sell items on eBay. eBay is very much alive still and one of my favorite things about using eBay, as well as Poshmark, is that they will pop up as shopping results if someone uses Google to search for an item. This is incredibly valuable. Make sure to use this to your advantage if you sell. I like using eBay for electronics, high end clothing or lots of clothing and collectibles.
- Sell furniture or household items on Facebook Marketplace or Craigslist. Sell items you have and no longer use or try flipping items you find and thrift stores.
- Try your hand at retail arbitrage/Amazon FBA. This option would take some investment and some research but you can flip low priced items for a profit on Amazon or even on eBay. I am no expert on this so if this interests you I suggest doing a search for a breakdown and tips.
Are you still with me? Great!
A lot of these are things that I have personally done to save money and make income on the side.
Though most of them aren’t going to rake in hundreds of dollars, at a time if you focus on a few you can definitely bring in some extra income.
Just be sure that all of the money you cash out goes right into your savings account – stay disciplined and you will be happy you did later.
Step 4: Set saving goals
Setting goals is so important. Challenge yourself weekly to hit a certain amount of savings. I personally like to aim high.
Block out time in your day to focus on making extra income. Treat your side hustles like they are jobs. Have a designated time to work on them and in that time – hustle.
Block out an hour or two to complete some surveys.
Advertise yourself on social media to see if anyone you know could use any services you are able to provide.
Take on a few, but not so many that you feel overwhelmed.
As I mentioned earlier, a lot of these side income ideas will take some time. If you already feel like your days are full or find yourself wishing for more useable hours you’ll want to check back in for some time management and productivity tips in the coming weeks.