How to Get By on Minimum Wage

The current federal minimum wage is $7.25 per hour, with variations on the amount taking place from state to state. While this doesn’t sound like a lot, especially when you are trying to take care of a family, there are ways to maximize the amount you’ve earned and ensure yours and your family’s needs are met.

In this article, we’ll take a look at some tips on how to get by on minimum wage and things you can do to bulk up your budget.

Apply for Assistance

First and foremost, it’s important that you take care of any and all programs and assistance available to you when you’re working with a smaller budget. There are a lot of options available for assistance to those people and families making minimum wage; taking the time to check into what you qualify for is definitely worth it. A quick online search can help you narrow down what’s available to you in accordance with your family size and household income. You can also call United Way community services clearinghouse - they’ll connect you with the agencies that can help.

Create a Realistic Budget

Making a budget, especially when you have limited income, is especially important. In order to make your available finances work for you, you’ll need to know exactly how much is coming in and out each month. Sit down and list the amounts you expect to spend each month for the categories below:

Rent/Mortgage Payments
Car Payments
Utilities
Car Insurance
Health Insurance
Credit Card/Debt Repayments
Savings
Groceries
Any Other Recurring Monthly Expense

Being clear on what you expect to pay during the month will allow you the freedom to know what you can spend on other wants or essentials.

Look for Alternative Income

If after making your budget, you find little to no money is left over or you don’t have enough to cover the essentials, it’s time to look for ways to bring in additional income. This doesn’t necessarily mean you need to take on a second job; this can be difficult sometimes. Here are a few ideas to consider that may help broaden your budget and make things easier:

Ask for overtime at your current job
Sell unused items or clothing from your home
Take surveys online for cash
Take advantage of all store rebates, no matter how small
Sign up for a shopping cash rewards app like Ebates
Rent a room in your home

Make Budget Cuts

Along with bringing in additional income, it’s essential to look for ways to reduce your spending in order to make it easier to live within the confines of your budget. Some tips to lessen how much you spend each month are:

Lessen your electric bill by ensuring lights are off when not in use.
Eat all, or most, meals at home. Spending on food at restaurants and coffee shops adds up quickly!
Purchase clothing at thrift stores or discount retailers such as Walmart, Kohls, and Target.
Plan all of your meals and grocery shop according to only what’s on your list.
Make sure you aren’t paying for any subscription services that you don’t use and cancel those that are unnecessary.
Cancel your cable and switch to a streaming service such as Hulu or Netflix.

Use Coupons and Discount Cards

Couponing used to be much more of a hassle than it is now. While it is helpful to pay attention to and utilize the mailers you probably receive, there are also plenty of online apps and websites that make the process easy for you such as RetailMeNot or Coupon Cabin. Grocery stores will also allow you to print coupons directly off their site sometimes.

Discount cards are another thing you should always take advantage of. Many grocery stores, retail stores, gas stations, and pharmacies will have free discount stores that you can sign up for that will save provide you with discounts, earn you points for rewards, and sometimes even cash back.

Take Advantage of Tax Breaks and Refunds

For lower-wage earners, there are certain tax breaks available to you that can save you money. When you go to file each year’s taxes, be sure to get up to date on any tax breaks you may qualify for - such as the earned income tax credit and child tax credit. Any refunds you receive from the IRS should also be utilized wisely to assist you throughout the year with things like:

Supplementing your savings
Paying off credit card debt (this can help your monthly budget!)
Prepaying for services used throughout the year
Padding your checking account so you’re less likely to live paycheck to paycheck