Today I’ll be sharing how to budget money on $1500 a month as well as 50 frugal tips that will help you save money so that you can stick to your budget!
You may be thinking, is it even possible to live on $1500 a month in 2024?! I assure you it is. In fact, plenty of people do. After all, the U.S. federal minimum wage hasn’t budged since 2009 – it’s still $7.25 per hour (or $1256 per month) and the average global personal income is just $811 per month.
What does this mean for those aiming to make ends meet on $1500 a month? It means that although it will be challenging, it is possible with the right mindset and money saving strategies.
Can a Person Live on $1500 a Month?
Absolutely! It is possible to live on a monthly income of $1500, but it does come with its fair share of lifestyle adjustments and sacrifices. It takes a genuine willingness to reevaluate your spending habits and make conscious decisions to prioritize your needs over your wants. That means cutting back on your non-essential expenses and finding clever ways to save money on your essentials too.
So where do you start? Well, developing a budget is key.
How to Budget $1500 a Month
Budgeting is crucial if you want to live on a low income. It allows you to allocate different amounts of money to different expenses so that there are no surprises at the end of the month. I mean, who wants to find out two days before rent is due that they spent their rent money on groceries?! Not me.
In order to create a budget, you’ll want to start by tracking your expenses. I recommend tracking your expenses for an entire month. You can do this by recording your expenses throughout the month in a notepad or simply looking at your credit card statement. There are also plenty of free budgeting apps that can automate this process for you (more on this later!)
By tracking your expenses, you’ll gain insight into where your money is going. You may even discover areas where you’re spending more money than you should. If this is the case for you, I recommend allocating slightly less money to these areas than you’re currently spending. This will challenge you to live more frugally while also freeing up resources for the areas that may need them.
Now, I’ll share my $1500 monthly budget with you. Although my personal budget may not perfectly align with your circ*mstances, it can still serve as a starting point for crafting your very own budget!
My $1500 a Month Budget
Below is my $1500 a month budget.
- Rent: $600
- Groceries:$250
- Cellphone: $60
- Electricity/Water/Natural Gas:$250
- Health Care:$31
- Transportation: $80
- Entertainment:$125
- Savings: $100
Total Expenses: $1496
Now, let me explain how I arrived at these numbers.
Rent: $600 a month
When it comes to budgeting, the traditional advice is not to let your rent or mortgage exceed 30% of your before-tax income. However, this advice is typically given without considering individual spending habits.
I’d rather cut back in other areas but spend more on rent and live in a nicer home. Why? Well, one of the simplest and most effective ways to save money is by spending more time at home, and that’s much easier to do if you genuinely enjoy being there.
That being said, even though allocating $600 a month for housing exceeds the recommended $450 (30% of $1500), it still falls below what many people spend on housing. At least were I live, it can be quite challenging to find places to rent within this price range. Luckily, there are ways to save money on housing so that you can stay within this price range. Later in this post, I’ll share those tips with you!
Groceries: $250 a month
When it comes to distinguishing between essential and non-essential expenses, groceries undoubtedly fall under the essential category. After all, we all need to eat! The good news is that being frugal in this area can lead to significant savings.
Later in the post, I share some tips and tricks for keeping your groceries at $250 a month. I’ve also written an entire post dedicated to 21 ways to save money on groceries. Click here to give it a read!
Cellphone: $60 a month
When it comes to my cell phone plan, I spend $60 a month with Mint Mobile. However, it’s worth noting that you can actually find cell phone plans available for as low as $30 to $40 per month!
Later in this post, I’ll be sharing 5 affordable cell-phone plans that will keep you within (or below) $60 a month.
Electricity/Water/Natural Gas: $250 a month
Water: When it comes to paying for water, you’ll either be charged a fixed rate or tiered pricing. With tiered pricing, the cost of your water bill will depend on your usage. With fixed rate, you’ll pay the same amount regardless of how much water you use. I’m currently paying a fixed rate of $87 a month for water. This means that regardless of how hard I work to save water, the only benefit is environmental, not monetary (still a good reason to turn the water off while brushing my teeth though!)
Natural Gas: I spend $39 a month on natural gas. By locking in my natural gas rate, I’ve been able to keep my bill relatively stable month to month, making budgeting much easier.
Electricity: I pay around $130 a month for electricity – not too shabby! And although I’d like to believe it’s thanks to my energy saving habits, a huge part of it is due to where I live. You see, I live in Washington state, and we have relatively low electricity rates. According to the Washington State Department of Commerce, one of the reasons for this is because Washingtonhas a large infrastructure dedicated to producing wind, solar and hydro-electric energy (Pretty cool – but, I won’t bore you with all the details). If you’re interested to see how your state compares in electricity rates, click here!
Health Care: $31 a month
When it comes to health care, I was able to find a plan that was only $31 a month through Stride Health, a California startup that focuses on connecting individuals with health plans under theAffordable Care Act. According to their website, they’ve been able to find 4 out of 5 people plans for under $10 per month, which means it’s totally do-able for you to budget $31 a month for health care too!
Transportation: $80 a month
I’ve been able to keep my budget for transportation under $100 a month, but that’s only because I’ve made some significant sacrifices. One of those being that I actually don’t own a car. I get around mostly by biking, using public transportation, asking for the occasional ride from a friend and getting an Uber or Lyft (under dire circ*mstances). I’ll get into how to save money on public transportation later in this post!
Entertainment: $125 a month
I’ve been able to save a lot of money on entertainment expenses by embracing free, outdoor activities. I spend most of my weekends hiking, trail running, backpacking and rock climbing. These activities are basically free! I also spend a lot of time at home which saves me a lot of money. Luckily I have plenty of inexpensive hobbies like reading, blogging and gardening to keep me entertained.
Savings: $100 a month
With this budget, you can even save a little bit at the end of the month! $100 isn’t much, but it’ll add up.
Now, let’s dive into 50 frugal tips to live comfortably on $1500 a month!
50 Frugal Tips to Save Money on $1500 a Month
Below are 50 frugal tips to help you live comfortably on $1500 a month!
1. Create a Budget
The most important tip for living comfortably on $1500 a month is to create a budget and stick to it.
But let’s be honest – the thought of budgeting can feel so overwhelming! Luckily, not all budgeting methods involve complicated spreadsheets and equations. The 50/30/30 budgeting method is refreshingly simple and straightforward!
When I first started budgeting, I scoured the internet for a 50/30/20 budget template that fit my needs. I wanted it to be simple enough so that I actually wanted to use it, but still effective. Unfortunately, all the spreadsheets I found were either too complicated or way too basic. So, I created my own.
Click here for a FREE 50/30/20 budget template spreadsheet!
2. Use Free Budgeting Tools
In order to stick to your budget, take advantage of free budgeting apps and online tools! They will help you track your expenses, set financial goals, and manage your budget effectively.
Here are three of my favorite free budgeting tools. Keep in mind that you may have to pay for an upgrade in order to benefit from all of the features they have available.
- Mint: Mint allows you to connect your bank accounts, credit cards, and other financial accounts to track your income and expenses automatically. It also sends alerts for bill reminders so that you never miss a payment!
- Good Budget: Good budget focuses primarily on financial planning rather than tracking past transactions. The app is designed based on the envelope budgeting system, where you allocate your monthly income into distinct spending categories (envelopes).
- PocketGuard: PocketGuard is a user-friendly budgeting app that focuses on helping you control spending and stay within your financial limits. It provides a snapshot of your financial health, tracks bills and subscriptions, and offers insights into your spending patterns.
3. Embrace Minimalism
Adopting a minimalist lifestyle will help you save money by teaching you to prioritize experiences over material possessions, and find joy in simplicity.
4. Simplify Your Meals
Simplifying your meals will help you save money on groceries by helping you reduce food waste. By cooking with simple, versatile ingredients (like beans, rice and cheap vegetables) you are less likely to let ingredients go bad because you weren’t able to incorporate them into a recipe. These simple ingredients are super cheap too!
5. Use a Slow Cooker or Pressure Cooker
Consider investing in a slow cooker or crockpot to make even inexpensive cuts of meat taste tender and flavorful. Rump roasts are among the least expensive cuts available and while they can taste tough, slow cooking really helps make this cut of meat super tasty!
6. Meal Plan and Prep
Always plan your meals in advance, create a grocery list, and meal prep to minimize food waste and ensure that you have affordable and convenient meals throughout the week. This will ensure that you aren’t tempted to eat out simply because you have nothing prepared.
7. Pack Snacks Wherever You Go
Always bring snacks with you when running errands or going out. This will help you resist the temptation of eating out if you start to feel peckish.
8. Shop at Extreme Value Grocery Stores
Shopping at extreme value grocery stores, such as Grocery Outlet, is a great way to save money on groceries! These stores offer a wide range of products at significantly discounted prices. By purchasing surplus, closeout, and overstocked items from major brands, they pass on substantial savings to their customers. Plus, with a constantly changing inventory, there are always new deals going on. This can make grocery shopping way more fun since you never know what you might find. It’s like thrifting, but for groceries!
9. Opt for Generic and Store-Brand Products
Instead of purchasing brand-name items, try generic or store-brand alternatives for groceries, household goods, and personal care products. They often offer the same quality at a lower price.
10. Buy in Bulk
Purchase non-perishable items in bulk to take advantage of discounts!
11. Order Water at Restaurants
I credit this tip to my mom, who always asked that my sister and I order water when going out to restaurants as kids. She would explain that by choosing water over soda or juice, we would be able to go out to restaurants more frequently because we’d be saving money.
This advice has stayed with me through the years. Even now, when I sit down at a restaurant, I find myself instinctively ordering water (though I must admit, I can’t help but order an occasional co*cktail from time to time).
12. Grow Your Own Food
Start a small garden or grow herbs and vegetables indoors. Growing your own food can be a rewarding and cost-effective way to supplement your grocery expenses, while also ensuring you have access to fresh produce.
13. DIY Household Products
Make your own household products, such as cleaning solutions and beauty products, using simple ingredients like vinegar, baking soda, and essential oils. Click here to learn how to make homemade cleaner with simple ingredients!
14. Learn Basic Home Repair Skills
YouTube and online tutorials can teach you how to handle simple home repairs and maintenance tasks, saving you money on professional services.
15. Take Advantage of Community Resources
Take advantage of public amenities and spaces in your community, such as parks, hiking trails, beaches, and public libraries.
16. Explore Free Entertainment Options
Attend free community events, concerts, art exhibitions, or movie screenings in your area.
17. Embrace Free or Low-Cost Hobbies
Consider starting a free or low-cost hobby such as hiking, reading, writing, drawing, or learning a musical instrument. These hobbies can take the place of more expensive activities.
18. Cut Cable and Streaming Costs
Consider canceling cable subscriptions and opting for more affordable streaming services or free alternatives like library rentals.
19. Cancel Unused Subscriptions
Review your subscription services and cancel any that you rarely use or can do without. Yes, that includes your monthly subscription boxes and unused gym membership.
20. Explore Alternative Housing Options
Explore alternative housing options like tiny homes, co-living spaces, basem*nt suites, or renting a room in a shared house. These options tend to be more budget-friendly compared to larger apartments or standalone houses.
21. Look for Rental Specials or Promotions
Keep an eye out for rental specials, such as discounted rent for the first few months or waived application fees. This can help you save money upfront or reduce your monthly expenses.
22. Consider Renting From Individuals or Smaller Landlords
Large property management companies often charge higher rent due to overhead costs. By renting from individuals or smaller landlords you may be able to negotiate your rent and it’s usually an all around better experience. Check outFurnished Finder,CraigslistorFacebook Marketplace for great options!
23. Sign an Extended Lease
Typically, if you commit to a longer term lease, your monthly rate will go down.
24. Get a Roommate
This ones pretty self explanatory. The more people you live with, the cheaper your rent will be!
25. Negotiate Rent
Always negotiate your rent, especially if you are releasing. You’ll be surprised by how many landlords are willing to drop the price of rent for a good tenant.
26. Give Up Your Parking Spot
If you’re renting in an apartment complex, chances are, a free parking spot is included in your rent! If you don’t drive, ask your landlord for a discount on your rent in exchange for the unused parking spot.
27. Lock in Your Natural Gas Rate
By locking in your natural gas rate, you get afixed-ratewhich provides you with a more predictable natural gas bill month to month. This can make it much easier to stick to your budget!
Natural gas contracts are typically between 6 months and 2 years, but can go up to 5 years, so knowing when prices are cheapest will help you get the best possible deal for your business. Here’s a great article for how to lock in natural gas rates and when the best time is to do so!
28. Negotiate Bills and Expenses
Don’t be afraid to negotiate bills and expenses. Contact your service providers and ask for discounts or better rates. Sometimes, a simple phone call can result in lower monthly payments for utilities, internet, or insurance.
29. Shop Smart
Comparison shop before making any major purchases. Look for the best deals and consider buying used or refurbished items.
30. Avoid Unnecessary Debt
I know this is easier said than done, especially if you are living on a low income. However, avoiding unnecessary debt is crucial to achieve financial freedom.
Try to avoid high-interest debt, such as credit cards, as much as possible. Pay your bills on time and only use credit when necessary.
31. Choose Generic Prescriptions
Talk to your doctor about whether you can switch your prescriptions from brand-name to generic. After all, brand-name and generic medications have the same active ingredients and have the same effect (but generic medications generally cost less!). Click here to learn more about the differences between generic vs. brand-name medications.
32. Focus On Preventive Healthcare
Practice a healthy lifestyle, exercise regularly, and prioritize preventive healthcare to minimize medical expenses in the long run.
33. Switch to a More Affordable Health Insurance Plan
If you’re currently spending more than you can afford on health insurance, considering switching to a more affordable plan. You can pay as little as $10 per month on healthcare! However, you may have to sacrifice some flexibility and have a high deductible in order to make that happen.
Here are five examples of affordable healthcare plans that you can consider:
- Medicaid: Assuming you make $1500 a month or less, your income should be low enough to qualify you for Medicaid. Medicaid is a government-sponsored program that provides healthcare coverage to low-income individuals and families.
- Health Insurance Marketplace Plans: Health Insurance Marketplaces, such as the Affordable Care Act (ACA) marketplace in the United States, offer a range of health insurance plans with varying coverage levels and costs.
- Catastrophic Health Insurance Plans: Catastrophic health insurance plans are designed to provide coverage in case of major emergencies or serious illnesses. These plans typically have lower monthly premiums but higher deductibles. This is a great option for individuals who are generally healthy and primarily need coverage for significant medical events.
- Health Maintenance Organization (HMO) Plans: HMO plans usually have lower monthly premiums compared to other types of health insurance plans. They require you to choose a primary care physician and generally have a network of providers that you must use for your healthcare services. HMO plans can be cost-effective if you’re comfortable with the restrictions on provider choices.
- High-Deductible Health Plans (HDHP) with Health Savings Accounts (HSA): HDHPs have lower monthly premiums but higher deductibles, meaning you’ll pay more out-of-pocket before your insurance coverage kicks in.
While the cost of health care varies significantly depending on your income level, where you live and your health care needs, you can spend a whole lot less on health care by switching to an affordable plan.
34. Utilize Free or Low-Cost Fitness Options
Instead of an expensive gym membership, work out from home by following free workout videos online, use outdoor spaces for jogging or walking, and consider joining community fitness programs or sports leagues. There may even be free yoga or dance classes in town – ask around!
35. Switch to a Cheaper Cell-Phone Plan
Evaluate your cellphone plan and see if you can switch to a more affordable plan or consider switching to a budget-friendly carrier. Use Wi-Fi whenever possible to reduce data usage.
Below are 5 affordable cell-phone plans that will keep you within (or below) the $60 monthly spending limit.
- Mint Mobile:This is my personal favorite. Mint Mobile offers prepaid plans with varying data options at affordable prices. They provide coverage using T-Mobile’s network and offer discounts for purchasing plans in bulk (e.g., three, six, or twelve-month packages). 4GB of data is only $15/month and an unlimited plan is only $30/month – not too shabby!
- Google Fi: Google Fi is a flexible plan that uses a combination of networks, including T-Mobile, Sprint, and US Cellular. With Google Fi, you only pay for the data you use, and there are no contracts or additional fees.
- Cricket Wireless: Cricket Wireless provides prepaid plans with unlimited talk and text and various data options. They use AT&T’s network and offer affordable pricing for individual and family plans.
- Tello Mobile: Tello Mobile is a no-contract carrier that allows you to customize your plan based on your specific needs. They provide 4G LTE coverage using Sprint’s network and offer competitive rates for voice, text, and data.
- Visible: Visible is a prepaid carrier owned by Verizon that offers unlimited data, talk, and text at a flat monthly rate. They operate entirely online and provide service through Verizon’s extensive network.
As you can see, there are plenty of affordable options out there, you just need to be willing to sit down, crunch the numbers and figure out which plan is the right fit for you!
36. Practice Energy-Saving Habits
Turn off lights and unplug electronics when you’re not using them, use energy-efficient bulbs, adjust your thermostat wisely, and air dry clothes instead of using a dryer to save on utility bills.
37. Walk or Bike
Whenever possible, choose to walk or bike instead of drive. It’ll save you money on gas and put let wear and tear on your vehicle.
38. Save on Public Transportation
Getting public transportation for free can be a challenging task, however, there are a few potential options you can explore to save on public transportation.
- Utilize fare-free transportation services: Some cities or regions offer fare-free public transportation on specific routes or during certain times. Research if such initiatives exist in your area and take advantage of these services when available.
- Seek out transportation subsidies or programs: Certain groups, such as students, seniors, or low-income individuals, may be eligible for transportation subsidies or discounted passes. Check with local government agencies, social service organizations, or educational institutions to inquire about any programs or discounts you might qualify for.
- Volunteer for transportation organizations: In some cases, volunteering for transportation organizations or community initiatives may provide you with access to free transportation. Consider reaching out to local non-profit organizations or community centers to see if they have any volunteer opportunities related to transportation.
- Explore corporate or employer benefits: Some companies or employers offer transportation benefits, such as subsidized transit passes or employer-sponsored shuttle services. Check with your employer or inquire about potential transportation perks during job interviews.
- Participate in research studies or pilot programs: Occasionally, researchers or transportation companies conduct studies or pilot programs that offer free transportation in exchange for participation or feedback. Keep an eye out for such opportunities and consider participating if they align with your interests.
39. Embrace the Sharing Economy
Make use of the sharing economy by renting out any spare rooms you may have on platforms like Airbnb, sharing rides through carpooling apps, or renting out your belongings when you’re not using them. This can generate additional income and help offset your expenses.
40. Plan Your Routes to Minimize Unnecessary Driving
Whenever you do need to drive, make sure to plan out your route ahead of time so that you don’t waste gas driving around aimlessly. From someone who is pretty directionally challenged, this tip has been a game-changer for me.
41. Rent or Borrow Items
Instead of buying items you need infrequently, consider renting or borrowing them from friends, family, or local rental services.
42. Prioritize Quality Over Quantity
Invest in quality, durable products that last longer, even if they have a higher upfront cost. This can save you money in the long run by avoiding frequent replacements.
43. Repair Clothing
If one of your high quality pieces does end up tearing, always aim to repair before rebuying. Teaching yourself how to sew is a great skill to have!
44. Start a Side Hustle
Explore ways to earn extra income through a side hustle that aligns with your skills or interests. This can help supplement your monthly budget and increase your savings – think dog walking, blogging or house sitting!
45. Participate in Online Surveys or Gig Work
Sign up for reputable online survey platforms or gig work platforms to earn extra money during your free time. While it may not be a significant income source, it can provide some additional financial flexibility.
46. Utilize Online Marketplaces
Buy and sell items on online marketplaces to save money on purchases and generate some extra income all whilst decluttering your home. I’d call that a win win!
47. Plan No-Spend Days
Set aside specific days where you won’t spend any money. It’s a fun way to challenge yourself to be more frugal.
48. Focus On Personal Development
Invest in yourself by focusing on personal development and acquiring new skills. This could lead to better job prospects, higher income, or opportunities for freelance work, which can ultimately improve your financial situation.
49. Practice Gratitude
Focus on appreciating what you have and finding joy in the simple pleasures of life. Cultivating gratitude and contentment can help you avoid unnecessary spending.
50. Seek Out Support
And lastly, seek out support – AKA do exactly what you’re doing now!
Read blog posts about saving money, listen to financial podcasts and seek out support through online forums to help you stay on track. You can also tell your friends that you’re trying to save money, that way, they can be sensitive to your situation and not tempt you with shopping sprees or nights out. Who knows? They may even decide to join you and start saving money too.
In Conclusion
I hope that this $1500 a month budget and the tips I shared will inspire you to cut back on your spending so that you can start to live comfortably on a low income.
In the comments below, let me know what you’re doing to save money!
