10 Tips for Living on Minimum Wage

As the cost-of-living increases, more and more people sink into the minimum wage portfolio. This sad reality has made people lose motivation for their hard work. While minimum wage sets a baseline for financial compensation, additional forms of recognition and support, such as custom awards, can boost morale and motivation. This recognizes the effort and dedication they put into their work and gives them a sense of appreciation beyond the money.

However, surviving the reality of living on minimum wage requires a high level of financial prudence and discipline.

This article provides ten necessary tips to live a satisfying life while on a minimum wage salary.

Low-Cost Housing

The first key to living on a minimum wage is to shun luxury when renting apartments and opt for low-cost housing. The principle in low-cost housing is that 20% of gross salaries can pay rent. Another principle is to ensure that it would require less than four (4) months’ salary to cover rent. Relocating to low-cost housing areas is one of the best ways to effectively live on a minimum wage. The end product is to ensure that you take care of rent without overstretched financial burden, which leads to the debt cycle.

Plan Expenses and Implement

Planning and tracking expenses is one of the best ways to live on a minimum wage budget. This suffices for drawing out a financial plan, including income and expenses. After drawing out such plans, take time to plan out all expenses that will occur before the next paycheck arrives. Such plans should cover necessities like utilities, taxes, and feeding. After laying out such plans, stick to them with a high rate of financial discipline. For example, if you forgot to add that last-minute football ticket, you can always add it during the next plan.

Avoid Unnecessary Expenses

The trick to living on a minimum wage salary is exceptional financial discipline. Avoid all unnecessary expenses. How do you identify unnecessary expenses? 90% of those not covered in your plans are unnecessary. The bitter truth is that living on a minimum wage means denying yourself some pleasure. Eliminating all unnecessary expenses remains a major strategy for living on a minimum wage budget.

Extra Income

The fourth strategy to be applied is to search for an extra source of income. An extra source of income includes taking a supporting job to support such income or to sell services to people. You can monetize those services you can do for an extra source of income. If you are a janitor, you can offer cleaning services to people and leverage it as a way to make extra income. All you need is one customer and a job well done, and you are on the path to extra income. An extra income is a never a bad idea because such income is not covered in your financial plan. This will probably make it possible to ensure some luxury sometimes.


No matter how little, always save for the rainy days. One of the best ways to save is to open a separate account dedicated to savings. You can set aside 7 to 10 percent of your income every month. The value of saving is to relieve unnecessary financial pressure and assist in carrying out some projects necessary to grow a higher income.

Liquid Cash

Do not carry much liquid cash around all the time. It is easier to spend, which limits financial prudence. If you do not need it, keep your money in the bank. Plan your weekly expenses and make such withdrawals once or twice a week.

Smart Shopping

Shopping intelligently is one of the key ways to reduce financial burden. List all the things you need before the next paycheck arrives on a scale of preference, incorporate the list into the monthly budget, and shop for them all at once. Shopping for items regularly overstretches personal finances. Remember to shop for only things you need before the next paycheck. When you get that extra income, you can add more luxury to the shopping list.

Use Cheaper Alternatives

Always analyze and use cheaper alternatives to cut down costs. Would it be cheaper to cook at home or to order takeout daily? Would it be cost-effective to shop at Walmart or a local supermarket? Why subscribe to the plan for $85 when I can get a cheaper alternative for $55 a month? Always make budgets using less expensive alternatives to cut down on extra costs. If you cut down $120 monthly, you successfully cut down $1,200 in ten (10) months.

Avoid the Debt Trap

One of the things that ruin the majority of low-income earners is falling into the debt trap. The debt trap cripples the value of net income and leaves the debtor devastated. Avoid the debt trap by cutting down expenses and adhering strictly to the monthly budget.


You cannot survive on a low income forever. Use your savings to invest in yourself, acquire more relevant skills, and aim for higher-paying jobs.

Remember, this is only a temporary phase. Stay positive and remain focused on the future.