Last Updated on January 15, 2023 by Saria

161+ Ways on How to Save Money When You Live Paycheck to Paycheck 

How to save money when you live paycheck to paycheck, is probably a question most people with a tight budget or no savings ask.

Let’s face it.

Can you save money when you struggle to make ends meet, run out of money before the end of the month, and wait desperately for the next payday?

Probably not.

So, it’s time to do something about it today.

The good news is that it’s possible to save, and you can start immediately.

So, put on your cape because it’s time to go from saving zero to saving hero.   

In this post, you’ll discover different ways to save for your financial goals or unexpected emergencies, even when you’re living paycheck to paycheck.

And hopefully, you won’t be asking, “I live paycheck to paycheck how can I save money?”.

Let’s start with a few common questions and answers to set the foundation on how to save and stop living paycheck to paycheck.  

What are financial goals? 

Suppose you have no idea what you want to save towards. In that case, you might quickly lose your desire to save and may even continue to spend unnecessarily on non-essential items.

Knowing what you want to accomplish can influence your actions and make saving easier.

That’s why setting financial goals are important.  

They are things you might want to achieve in a short space of time or the long term after you’ve assessed your circumstances and what’s important to you.

If you know what’s the prize, then it’s easier to keep your eyes and mind on it.

Examples of financial goals 

As you begin to think about saving, think about what matters to you.

You may discover that you have many important things that matter to you. And your needs or wants may change over time. 

Some may be practical and responsible, and others may even be considered “fun” goals. You know the things you want but might not necessarily need, or how you reward yourself for working hard and saving consistently.

Here are some financial goals examples:

• Creating a budget
• Saving for an emergency fund
• Paying off credit card debt or any debt
• Saving for retirement
• Saving for a wedding
• Buying a house
• Learning new skills to improve income
• Life Insurance
• Saving to travel
• Starting a business

You’ll need to examine your situation to understand where you stand and whether your goals are short-term or long-term. Also, what goals should be prioritized over others.

What is considered living paycheck to paycheck? 

If you think living paycheck to paycheck is something only low-income workers experience, then think again. You can be making a 6-figure salary and still can’t make ends meet. 

Living paycheck to paycheck is a fact of life for many individuals worldwide, and it’s experienced across all income brackets.

Debt such as mortgages and credit card balances are major reasons people struggle financially or don’t have savings. If you have a spending problem, that too can be why you don’t have savings.

So, what’s considered living paycheck to paycheck?

If any of this sounds familiar, then you’re probably living paycheck to paycheck:

• Scrambling to make ends meet.
• Running out of money before the next paycheck.
• Most or all, your salary goes towards monthly expenses with nothing left even for saving.
• Not being able to spend or buy before your next paycheck.
• You struggle to pay bills.

How can you save if you’re currently living like this? 

Now let’s dive into how to save money when you live paycheck to paycheck as promised.

How to save money when you live paycheck to paycheck 

So, hopefully, you have an idea of what you want to save towards. To make saving even more successful, you’ll need to do a few things first. These are the must-dos.

1. Set S.M.A.R.T financial goals 

It’s worth repeating as this is the starting point. You’ll need to know what you want to save towards.

Give your money a purpose.

But if you want to achieve your goals successfully, you’ll need to set SMART financial goals. You’re probably familiar with what SMART stands for: specific, measurable, achievable, realistic, and time-based.

Setting SMART goals enables you to turn your intentions into solid, actionable plans aimed at a clear target.

So instead of saying, “ I want to save money for the future,” aim to set your goal in clear terms. For example, “I will save $1,000 in the next 10 months for my emergency fund by canceling my gym membership and buying less takeout”.

So, you need to know how to set SMART financial goals if you want to save and get ahead when living paycheck to paycheck.

Once you’ve set your SMART financial goals, start with a small actionable one. It’ll help keep the momentum going. 

As you’re starting, if you take on a goal that’s too ambitious, you might lose your motivation to save.

Tips to help you stick to the plan:

• Write down your SMART goal. 
• Place reminders where you can see it every day.
• Seek support from friends and family.

2. Create a budget 

If you don’t have a budget, you’ll most likely fail to save and continue living paycheck to paycheck.

The first steps to budgeting include writing down your take-home income (net income), then listing all your expenses.

Budgeting lets you know whether you spend more than you earn and what exactly you can afford to spend. 

You need to know where your money is going if you want to be in control of your finances. So, telling your money where to go is basically budgeting.

Knowing how to budget is an essential step towards your goal of saving.

Tip: Refer to your budget throughout the month. Adjust as needed as income, expenses, circumstances, and priorities change over time.

3. Track your spending 

Once you start budgeting, tracking your spending is the other step. It’ll help identify where you’re spending the most money and what adjustments you can make.

As you track your expenses, you might not like what you see, especially if you’re spending lots of money on non-essential items. You’ll need to be honest with yourself and determine whether you have a spending problem.

Even if your income increases, if you don’t create a budget and track your spending, you won’t know your spending habits, and that would equate to less or no savings. So, always track your spending.

Tip: Whether you choose to use pen and paper or an app, record everything you spend money on daily. Stick to your budget and avoid unplanned purchases.

4. Find a financial mentor

If you’re over your head with bills with no money left over, naturally, you’ll wonder if you can win at saving and finally stop living paycheck to paycheck.

Trying to figure this out might be scary for some. But you don’t have to do this alone.

A financial mentor is someone who can inspire you, give advice and honest feedback and help you navigate through your money woes and hopes.

Tip: Find someone who’s honest about their successes and failures, financially savvy, and has their financial act together to help you on your journey. It can be a friend or relative.

5. Open a savings account for your specific goal

Opening a savings account for your financial goal is a good idea as it’s a specific plan for your money and can also motivate you to save.

Once you’ve determined which of your financial goals deserve a saving account, you can start with only one. Juggling multiple accounts can distract you and make budgeting and saving a bit more challenging. 

You can open multiple accounts for your other financial goals as you get a handle on things. 

Tip: Research and compare the offerings of different financial institutions and pick one that’s best suited to your needs. You’ll want to consider minimum initial deposit, interest rates, minimum balance requirement, low or no fees, and, if any, how you can avoid them.

Living Paycheck to Paycheck No Savings? 161+ Ways to Save

This list starts with savings tips in the four essential areas (food, utilities, shelter, and transportation) you need to survive, followed by other recommendations.

If you follow these tips, you’ll know how to save money and stop living paycheck to paycheck.

How to Save Money on Groceries   

Grocery shopping on a tight budget? Follow these tips below to learn how to save money on food shopping and cut down food costs. 

1. Check your pantry or refrigerator first before planning and shopping. Use whatever you have left and only buy what you need.
2. Plan your meals and plan them around items on sale.
3. Make a grocery list and stick to it.
4. Research different stores for the best prices, then plan your shopping trip.
5. Shop on a full stomach. Don’t shop when you’re hungry.
6. Use the calculator on your phone to keep track of the items in your cart.
7. Buy store brands.
8. Buy food in bulk but not more than you need and not unhealthy ones.
9. Purchase food close to their sell-by date. They are typically priced cheaper.
10. Buy dried herbs instead of fresh ones, which will reduce wastage too.
11. Don’t buy pre-chopped vegetables (unless you’re the busy type).
12. When scanning grocery shelves, stick to the bottom shelves as the higher-priced items are strategically placed at eye level.
13. Stock up your pantry when food items with a long shelf life go on sale.
14. Buy snacks in bulk and carry them along with you when you travel. Don’t buy snacks at convenience stores.
15. Shop at your farmer’s market around closing time. You’ll almost always get good deals.
16. Only buying fruits and vegetables in season.
17. Buy cheaper cuts of meat. For example, instead of buying chicken breast, buy the thighs instead.
18. Learn to cook.
19. Cook your food.
20. Cook 3-5 ingredient meals. It can be cheaper and faster, especially if you have a busy lifestyle.
21. Bake different meals at once in the oven.
22. Bulk cook one or two times a week. It’ll save time, and you’ll also have food readily available, especially on those days when you’re too tired to cook.
23. Replace meat with beans and lentils a few times a week if you don’t want to completely leave it out of your diet.
24. Bring your food to work.
25. Avoid waste by turning your leftovers into new recipes.
26. Save leftovers (what didn’t get eaten at a restaurant, take it home).
27. Store fruits and vegetables properly so that they last longer.
28. Freeze fruits and vegetables when in season, so you’ll always have them on hand for later when they’re out of season and pricier.
29. Make your jams and jellies with fruits in season. 
30. Make coffee at home.
31. Plant a garden.

How to Save Money on Utilities   

Your daily habits can cause your utility bills to be sky-high. So how can you lower your monthly bills and have money left for savings?

1. Know how much you typically spend on your utilities. You can check your providers’ websites.
2. Check your utility companies’ websites for any tips and suggestions for lowering your bills.
3. Turn off or unplug appliances and electronic devices when they’re not in use.
4. Turn off lights when not in use.
5. Switch to LED light bulbs.
6. Use smart power strips.
7. During the holidays, turn off house lights if your decorations are switched on.
8. Get rid of unnecessary clutter in your refrigerator. It’ll increase airflow and run more efficiently.
9. Set your refrigerator to 38 degrees and your freezer between 0 and 5 degrees.
10. Use a fan instead of the air conditioner. Just remember to turn it off when you leave the room.
11. Wash your laundry in cold water.
12. In the warmer months, skip the dryer and hang clothes outside to dry instead.
13. In winter, turn the heating down and wear a jumper or warmer clothing.
14. install a low-flow showerhead. It will reduce the amount of water you use.
15. Turn off the shower when you’re lathering up or washing your hair.
16. Take shorter showers. Try 5-minute showers instead.
17. Don’t fill the bathtub. You can just fill it up to a quarter of the way.
18. Turn off the tap when brushing your teeth or shaving. When shaving, you can dip your razor in a cup of hot water next to you.
19. Fix all leaks.
20. Save your dirty clothes until you have a full load before using the washer.
21. If you don’t have a dishwasher, fill a sink with soapy water instead of washing dishes under running water.
22. Place filled plastic bottles in your toilet tank. This will reduce the amount of water needed to fill the tank before a flush.
23. Cover the swimming pool to avoid water loss through evaporation.
24. When washing your car, turn off the hose between rinses. Alternatively, you can wash your car using a bucket and sponge.
25. Cover pots and pans when boiling food or water as the water boils quicker, and you’ll use less energy.
26. Cool the water used to cook vegetables or pasta to water plants.
27. Collect rainwater for watering your plants.
28. Reuse water left in pet bowls or drinking glasses to water plants.
29. Water your lawn or garden early in the morning or late in the evening. This would reduce the amount of water lost during evaporation.
30. Switch from postpaid to a prepaid phone plan.
31. Cancel membership or subscription services you don’t use.
32. Pay bills on time to avoid late fees.

How to Save Money on Housing

Housing could be one of your most significant expenses and probably contributes to why you’re living paycheck to paycheck. So, how can you lower your housing budget and save?

1. Rent a smaller apartment.
2. Rent a room instead of an apartment.
3. Negotiate your rent, especially if you’re a responsible tenant and always pay on time.
4. Get a roommate to split the rent or consider renting out a room if you own a home.
5. Move in with family or a friend.
6. Find a cheaper place to live.
7. Consider refinancing your home.
8. Rent out a room on Airbnb, Vrbo, or Homestay for some extra cash.
9. Check with your insurance agent every year to ensure you’re getting the best rate. Or you can talk to an independent agent who can shop around for the best coverage at the right price.
10. Perform monthly maintenance on your home so you can avoid higher costs in the long run.
11. Don’t call a Pro for minor repairs. Do it yourself.
12. Research contractors and obtain estimates before hiring for major repairs and renovations.
13. If you own your home, consider selling and buying a smaller or less expensive home.
14. Cut your grass yourself.

How to Save Money on Transportation 

Can you prevent transportation costs from draining your budget? Yes, you can. Follow these tips below to learn how to reduce the amount of money you spend on transportation costs.

1. If you own 2 or 3 cars, consider keeping only one and selling the others.
2. If you own a larger model automobile, consider switching to a smaller model.
3. Don’t buy a new car. Buy a low mileage 3 year old car instead.
4. If you’re going to take out a loan to purchase a vehicle, research different financial providers for the best interest rates.
5. Check your insurance policy. It may be outdated. Talk to an independent agent who can shop around for the best coverage at the right price.
6. For parts and repairs, research good mechanics and get pricing for parts and labor before hiring.
7. Inflate your tires to the proper pressure, and you can increase your gas mileage.
8. Don’t speed. You’ll get fewer miles to the gallon and a speeding ticket if you do.
9. Take care of your vehicle by doing basic car maintenance, such as getting regular oil checks and keeping your tires full of air.
10. Don’t use your car as a storage unit. Remove the excess weight. It’ll improve your fuel economy.
11. Plan all your errands so you can make them in one trip.
12. Travel in the same car as a family instead of taking different vehicles (that’s if everyone works in the same general area or travels along the same route).
13. Carpool or share rides with neighbors or co-workers.
14. Walk short distances instead of using your car.
15. Use public transportation some days of the week if you’re not ready to give up your automobile.
16. Use a bicycle, motorcycle, or scooter instead of a car. Ensure that you use protective gear when using those means of transportation.
17. If you rent, consider renting close to your place of work.
18. Ask your employer if you can work from home.
19. If a friend offers to drop you off at your destination, save the money you would’ve otherwise spent for gas or public transportation.

How to Save Money on Clothes 

You can cut down on clothing costs, and you can still look fabulous. Here are some ways to trim that clothing bill and save.

1. Take care of your clothes.
2. Learn to sew or mend clothes.
3. Repurpose old clothes. Yes, you can make a little girl’s dress from a man’s shirt.
4. Sell what you no longer wear.
5. Hand wash delicates. They’ll last longer.
6. Buy machine-washable clothing. If you buy clothes that need to be dry cleaned, then you’ll pay whenever you take them to the cleaners.
7. Before shopping for clothes, go through your wardrobe first. Organize your clothes into categories and determine what type of clothing (e.g., work attire) is most needed.
8. When shopping for clothing, make a list of what you need and stick to it.
9. Shop for the life you actually live.
10. Jazz up your wardrobe with inexpensive accessories for completely different looks.
11. Rent or borrow outfits for special occasions. If you don’t often attend those glitzy affairs, why buy an expensive outfit you’re going to wear only once?
12. Buy timeless clothing. They’ll never look dated.
13. Buy generic for basics such as tank tops or plain t-shirts.
14. Buy when out of season. A summer dress bought during the winter months will be cheaper.
15. Don’t buy clothing on sale if you won’t be wearing it frequently.
16. Shop at thrift shops.
17. Don’t buy expensive gym outfits. They won’t help you lose weight or keep fit any faster.
18. Don’t go overboard with fashion trends. Eventually, those pieces will just be hanging in your closet after the fad has passed.
19. Buy clothes with cash instead of a credit card. If you don’t clear that balance, you’ll be paying interest on clothing, and that means you’ll be paying more for them.

How to Save Money on Entertainment 

Wondering if you’ll have to sacrifice having fun if you want to save? You can still have fun and save too. Here’s what you can do to have fun and reduce your entertainment expenses.

1. Cut cable and choose a streaming service that costs less than your cable.
2. Split the subscription bill among family members or roommates.
3. Listen to music for free on YouTube or TuneIn Radio.
4. Check restaurants for special deals.
5. If you want to enjoy the restaurant or eating out experience, try going at lunchtime when the menu can be cheaper than dinner.
6. Eat at kids-free restaurants if you want to take your family out to dinner.
7. Order water instead of drinks at a restaurant.
8. Have your drinks at happy hour.
9. Control your alcohol consumption when at a club or bar.
10. Cut back on your drinking. If you drink a beer or a few a day, try going a few days without any.
11. Limit going out. Have get-togethers at each other’s house.
12. Have game nights with friends and family.
13. Have date nights at home.
14. Go for hikes on free trails.
15. Camp out on the beach.
16. Attend free events.
17. Buy used books.
18. Try staycations. There may be tons of things to do in your city or country without having to travel overseas.
19. Stay at Airbnbs to save on accommodation.

But wait, there’s more.

Other Ways to Get Ahead When Living Paycheck to Paycheck 

Still, looking for different ways to save when you’re living paycheck to paycheck? Here are some additional tips to help you save.

1. Don’t wait for things to break down. Perform maintenance on everything, including your mind, body, house, and car.
2. Invest in yourself. Learn a new skill that can lead to a high-paying job.
3. Take on a side hustle.
4. Don’t get into the habit of thinking that because you earn more, you can spend more. It doesn’t matter what you make. What really counts is how much you keep.
5. Exercise regularly to stay healthy, which means fewer trips to the doctor.
6. Cancel gym membership and work out at home.
7. Do household chores and gardening instead of going to the gym. They could improve your health.
8. Automate your savings.
9. Open accounts with a high-interest rate.
10. Open accounts with no fees attached.
11. Call your bank to negotiate a lower interest rate on your credit card.
12. If you have credit card debt, get a loan at a lower interest rate than the interest on your credit card. Save the difference.
13. Go over your credit card and bank statements and look for charges or transactions you didn’t authorize.
14. Don’t rely on credit cards to get by.
15. Stop using credit cards.
16. Refinance loans.
17. Learn how to fix things.
18. Mend instead of replacing.
19. Reuse things you already have and recycle items you no longer want.
20. Replace paper towels with microfiber cleaning cloths. Some people even use old t-shirts that they cut to size.
21. Wear less makeup. Some keep it to just foundation and lipstick.
22. Do your own hair, manicures, and pedicures.
23. Buy sale items only if they are necessities. Ignore if you don’t need them.
24. Shop alone if you must. Don’t take an impulsive buyer or your kids along with you.
25. If you’ll be shopping at a store, use cash instead of a debit or credit card. Leave the cards at home.
26. Search for coupon codes online before a purchase.
27. Don’t confuse luxuries with necessities.
28. If it’s not in your budget, don’t purchase it., unless, of course, it’s an emergency.
29. Put all your spare coins in a jar.
30. Sell stuff you no longer need.
31. Don’t buy things you don’t need or the best version of something, especially to impress others.
32. Stay away from people who show off trying to live like the Jones.

Conclusion for saving when living paycheck to paycheck

So, there you have it, 161+ ways on how to save money when you live paycheck to paycheck. Which tips are you going to start today?

If you implement some of these tips, you will save some money. It’s not too late to start. You can start right now.

Living paycheck to paycheck can be a temporary situation. You may have to sacrifice your wants for now. It’s up to you to decide how fast you want to stop living paycheck to paycheck and how much you save.

Increasing your income might mean nothing if you’ve not dealt with your spending habits. So:

• Set your SMART financial goal.
• Create a budget.
• Track your spending.
• Find a financial mentor.
• Open an account for your financial goal.
• Apply the saving tips suited to your circumstances.
• Save the difference between what you used to spend and what you now spend.

So, which tip(s) are you going to try today?

Let me know by leaving a comment below, or you can share your tips on how you save and avoid living paycheck to paycheck.

Happy saving 🙂

161+ Ways on How to Save Money When You Live Paycheck to Paycheck