How to Live on Less Than a Thousand Dollars a Month

In order to live on a tight budget of under one thousand dollars a month, you will need to identify your expenses, prioritize them, and cap them. Whether you've lost your job, have an emergency expense that constrains the rest of your budget, or just want to practice frugal living, the rules of the game are the same: identify, prioritize, cap.

Instructions

1

Pay your rent or mortgage first. If these expenses are greater than two-thirds of your monthly budget, give serious consideration to moving someplace cheaper or seek financial advice from your bank.

2

Pay yourself second. This is special savings money, not to be touched except for emergencies (such as a hospital trip) or investments (such as a college education). Poverty tends to become self-perpetuating, as living expenses easily grow to consume all of your available budget. Counter this by explicitly setting money aside.

3

Buy the groceries and make them cheap. Your task is to make sure that you get enough calories and enough nutrients each day, without going over budget.

4

Prepare your own food at home. Don't buy prepared food, and don't eat out. On a budget of less than one thousand dollars a month, you have no alternative.

5

Apply for food stamps if you cannot afford enough to eat. Visit a food bank if you have an urgent need.

6

Downsize your utilities. Use less electricity. Downgrade your cell phone plan, or cancel it and purchase a cheaper landline. Cancel your deluxe cable or satellite service altogether.

7

Pay your utilities. If there isn't enough money left in the budget to pay them all, seek out utility assistance programs from your local government.

8

Pay your other obligations. This includes insurance, taxes, and bills. Try not to fall behind, but, if it's a choice between these obligations and something like eating or keeping the lights on, the choice is clear and try not to stress out over it.

9

Cancel the luxuries like restaurants, movies, shopping, parties, donations, housecleaning service, vacations--if it costs money, it probably has to go. Explore cost-free alternatives. Visit the library or the park. Have more conversations with your friends and family. Rediscover the art of cooking. Do some writing. Take walks or bike rides.

10

Look for a better-paying job as your time permits. If you have no job, make this a high priority.

11

Save money for special treats. If you've met all of your obligations for the month and can still spare a few dollars, put it aside as savings for things like a big meal out, a trip to the symphony, or some other costly luxury that you would not otherwise be able to afford.