Saving Money While Making Minimum Wage | Richard Banks & Associates, P.C.

Saving money is difficult to begin with, but can be even more trying when you’re living on a minimum salary. Our team at Richard Banks & Associates, P.C. understands your financial struggles and the desire to be financially secure, and wants you to know that it is possible to save money while working for only minimum wage!

Those working full time at the federal minimum wage of $7.25 an hour are making only $15,080 a year before taxes. That is only a couple thousand dollars above the 2017 federal poverty level for a household of one, which is $13,860. For a household of two where only one person is working, making minimum wage would put you a little over $3,000 under the poverty level, which is $18,670.

Chances are, if you’re working full time on a minimum wage salary, your budget is already cut back as much as possible. Even if you’re operating on bare bones, there are still ways to build up your savings.

1. Get out of debt: Our goal should always be to eliminate debt, and this is especially important for those living on a minimum wage salary. In a previous blog, we mentioned the debt snowball, and if you’re chipping away at credit cards, loans or medical bills, this could be one of the best solutions for you.

2. Save monetary gifts and other unexpected windfalls: While you’re paying down debt, it’s wise to not neglect stashing some of your cash in a savings account. If you receive money for a birthday or on the holidays, why not put it in the bank for a rainy day? Also, instead of using that tax refund check for a splurge, try to save some of it.

3. Change matters: We all tend to not pay much attention to our change unless it’s quarters, but those pennies can add up after time. Start a change jar and put your coins in it at the end of every day. After a month or so, you’ll be able to roll them and take them to the bank to add to your savings account.

4. Rethink transportation: In most places outside of major metro areas, public transportation can be less than reliable. If you are fortunate to live in a town with reliable public transportation, consider using that instead of driving: after all, it will save you gas money. Walking and biking to work or around town are also cost-effective modes of transportation—and they’re good for your health, too!

These are just a handful of suggestions that you can apply to your life if wanting to save money while working a minimum wage job. We know that things can get rough from time to time, and if your debt has become unmanageable, feel free to contact us for a free bankruptcy consultation. You don’t have to go it alone!