How to Save $1000 Living Paycheck to Paycheck

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Who here lives paycheck to paycheck? It’s safe to say that I can raise both hands to that question. Most people nowadays put little to no money away in a savings account from each paycheck. What if there was a solution to your savings problem? These easy steps can get you started and help you save $1000 in no time.

How much do you make in your paycheck?

#1. It’s a good thing to know how much you make.

This is something that should be a no-brainer when you get your paycheck. If you get paid hourly you should be able to calculate how much you make each week just by the number of hours you work. So naturally, you will know how much will be in your paycheck.

This isn’t always the case. My paycheck is never consistent. I work from home as an independent file reviewer for an insurance adjusting firm. That sentence sounded like a whole lot of boring, right? The only thing that was good about that sentence was that I work from home. You can read more about how I got the job here if you are interested. Anyways, since I work independently I have to account for taxes and other expenses that I am responsible for. Each paycheck I automatically take out those expenses since I can’t count on that money for survival and good old Uncle Sam has to get his portion.

#2. Create a budget

This is something that should be a staple if you are trying to save $1,000 when living paycheck to paycheck. A budget is your guide to make sure you are successful in your efforts. It will help you stay on track and pinch those pennies.

I have an amazing budget planner that I use to help with my savings available in my shop.

#3. Cut out the fluff

It’s always nice to go out to eat or go to the movies on the weekend, but do you really need that extra expense? This is what I consider fluff.

I used to go out to eat almost every day for lunch when I worked in a traditional 9-5 setting. I would spend about $6-$10 on my meal. Say you went out 3 out of the 5 days you work and purchased a $10 lunch each time, that’s $30 a week total. You work about 48 weeks out of the year and spend $30 on lunch each week. That’s $1,440 just going out to eat!!!!! Yikes! That’s not counting what you would the other 2 days out of that week.

If you stopped going out and packed a traditional lunch that might (depending on how much you pack of course) cost you a total of $3 a meal for 5 days of the week the total would be $720 for the work year. You would be cutting your lunch expense in half and save $720!

That means in the course of a year you would almost be able to save $1,000 from packing your lunch alone. Not to mention not going out to the movies or extra entertainment options. That is even more savings!

#4. Cutting down household expenses

Things you don’t think of every day, like conserving the power bill, cutting back the grocery bill, or creating a meal plan are great ways to squeeze out those extra pennies. Remember how I mentioned you need to create a budget? Well, this is where you trim the fat to make that budget work and you can successfully save that $1,000 when living paycheck to paycheck.

I have some great tips in my 9 Things to Stop Buying When on a Budget post. Make sure you check it out.

#5. Side hustle

I know not everyone has extra time but, if you do, starting a side hustle for extra cash is a great way to contribute to your savings. I purchased a course a while back on How to Get Paid for Using Pinterest and let me just say, this course opened my eyes to more opportunities to work online from home. Amazing side hustle! Another option for a side hustle could be to run a blog, but keep in mind it is a lot of work to get started. Once you get it going it is so neat that amount of extra money you could make. It can be limitless with the proper amount of dedication.

#6. Save those pennies, literally

This may sound silly but literally saving pennies can add up over time. I used to keep a change jar in my room when I was in high school making minimum wage working for a florist. There was no way I would ever get a raise in that business but it was a good job and I wasn’t planning on leaving anytime soon, so I had to make what I made count. Every time I would see change laying around unclaimed I would add it to my change jar. Over time it added up to over $100. This money, that I did no legwork to get, was a huge blessing!

#7. Sell your junk

Really, do you need that trinket that is gathering dust on a shelf? I think not.

Gathering your things for a garage sale is an awesome way to add to the $1,000 savings. You would be amazed at what some people buy. Plus, it helps you declutter your home.

Did these tips help you?

Let me know if they did or if you have some more tips you would like to share!

Need a better way to budget? Sign up below for my FREE Goal Crushing Budget Tracker!

Kim Calderon

Kim is a wife and a stay at home mom who loves spending time with her little boy. She likes managing her home and seeking out ways to improve her way of living.

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