Saving on an Extreme Budget

How to save money when making minimum wage

Woman in Subway Station
Get smart with your savings

Typically, the more money you have, the easier it is to save some. For those who are squeaking by, it's a little more difficult. It's simply not easy to save when you're making $15,080 a year before taxes. If that sounds impossibly low, you should know that's what someone making minimum wage takes home every year. Below are some tips for how even someone living on that amount can save some cash.

  • Get smart. In order to maximize your savings, you need to be smart when it comes to unexpected cash. Anytime you get a gift of cash like a birthday card with some money inside consider putting some of it in a savings account before doing anything else. Even if it's something as little as $5. Every little bit helps.
  • Sell the car. A car can be a huge money pit. Sell yours if you can use public transportation or carpool with others. If you can't sell it, try to drive it less often so you save on gas and repairs.
  • Keep selling. Don't just stop at the car. As CBS News reports, try to sell whatever it is you don't need. Everyone has old clothes, furniture and other items that they could part with. Look into what you can sell and save the money that you receive.
  • Move it. If you're really struggling to save, consider moving to a city where the cost of living is lower. However, don't just up and move. Find a job in the city first, and then look into new places to call home.

Fortunately, as a recent study from the Pew Research Center details, the number of people living on minimum wage or below has fallen significantly in recent years. If you're doing better than that, the takeaway from this story should be: If they can save more, so can I.

Article was written by Chris O'Shea for SavvyMoney®.