6 budget-friendly hacks to save money while living paycheck-to-paycheck

The path to financial breathing room doesn't require a finance degree or a huge salary. It starts with simple steps that anyone can take. Small changes in how you handle your money can have a surprisingly big impact on your overall financial picture.

You’re in a great place if you woke up determined to break the paycheck-to-paycheck cycle. Motivation is the starting point for something exciting. Like turning a ship, creating a better financial future takes some maneuvering. You can do it, and it starts with a plan. 

These six budget-friendly hacks could get you started.

1. Load up money-saving apps

The number of free money-saving apps is impressive. Try using technology to your advantage. If you have a smartphone, begin by looking up apps by subject. There are apps to help you track spending, automate saving, and save money on everyday purchases. Give them a spin one at a time.

Some apps tell you which nearby gas station has the cheapest gas price. If you have a Costco membership, their app will tell you the current price at each Costco gas station. Other apps could clue you in to the lowest prices on the groceries you need for the week, and many grocery stores offer free digital coupons you can download before shopping.

In other words, if you’re willing to do a little bit of homework before you spend, there’s no reason to pay top dollar for the items you need and want. Not when there’s an app for that.

2. Trim where possible

Mindful budgeting could help you get out of the paycheck-to-paycheck rut. 

First, go through your last few months of expenses. The easiest way to do this is to review your last three checking account statements. Separate everything you’ve spent into one of two camps: needs and wants. It may look something like this:

First, think of your needs as off-limits and focus instead on the things you want. Move down the list of wants, and see what you can eliminate and what you can cut back on. If you have four streaming services, ask yourself if you can live without two. Could you put travel on hold until you’ve carved out a little financial breathing room?

Some folks cut to the bone: everything that’s not necessary. While that’s a bold move, it does come with a real risk of burnout. Ideally, you can make cuts without feeling deprived. The less deprived you feel, the easier it will be to stick with a reconfigured budget.

Look at the entire picture of your spending. For example, perhaps you eat out three times a week, which costs about $18 for each meal. Maybe $18 doesn’t seem like much. But three times $18 for each meal adds up to $54. Over a month, you’re looking at $216 or more. Once you realize you’re spending more than $2,500 a year on meals out, you might feel more joy around the idea of cooking more often at home.  

3. Recruit a friend or two

You’re probably not the only one in your circle of friends who’s living paycheck to paycheck. If you have an inkling that one of your friends is in a similar situation, ask them to be an accountability partner. 

The two of you could get together to watch a yoga video instead of attending a paid class. You can cheer each other on while you both work toward developing a more comfortable monthly budget that leaves room for savings.

4. Find helpful resources 

Many communities offer programs and resources to help individuals and families with limited incomes. You might be eligible for utility bill assistance, food assistance programs, and free or low-cost services. You won’t know until you research.

Remember, your current situation doesn’t have to be permanent. Those programs are intended for people like you who are working to turn things around.

5. Set up autopay

Remember those bills you marked “needs” when you went over your budget? Go back through and make sure you’re signed up for autopay with each one. Let’s say your electric bill is due on the 15th. Arrange to have that payment taken directly from your bank account on the 15th of every month. 

Signing up for autopay does two things: It takes over time-consuming bill-paying so you can focus your attention on other things. It also ensures that you never make a late payment and end up with fees and penalties.

6. Negotiate expenses

Call your service providers to ask about lowering your bill. Move through a list of all your providers—from the cable company to the water company and your insurance provider—to negotiate a better price. Often, companies are willing to work with you to lower monthly bills or to create a payment plan that’s a better fit for your budget.

If suffocating debt is sapping all of your money and you just can’t get ahead, you might be a candidate for debt resolution. That’s when you negotiate with your creditor to accept a smaller amount to satisfy the debt. Sometimes creditors are willing to do this when you have a financial hardship and can’t afford to fully repay your debts. Getting rid of your debts could free up money in your budget for your emergency fund so that you can break the paycheck-to-paycheck cycle.

Although it may feel as though you’re stuck, you’re really not. A tough time in your life can be an opportunity for positive change. Getting ahead isn’t quick or easy, but taking steps to lower your financial stress is something you can do.