by Liz Sinclair

Created on: October 30, 2009   Last Updated: November 20, 2009

Many people live from paycheck to paycheck these days, particularly those earning minimum wage. While there are some inflexible budget items, such as rent or mortgage payments, insurance and utility costs, many people on a fixed income can still reduce spending and save money in many areas.

BUDGET

The most important thing for people living on minimum wage, says Erik Steel, who writes about career and work on eHow.com, is to create a monthly budget and stick to it. He recommends cutting out non-essential memberships and subscriptions, quitting smoking, or consolidating loan payments to increase a monthly budget.

THRIFT STORES

Thrift stores carry a wide range of second-hand and new items, from household goods to clothing, shoes and accessories. Savvy shoppers can furnish a home and stock a wardrobe on a small budget, even on a minimum wage salary. Find out which day local thrift stores put out new stock and shop on those days. Check bargain bins for out of season clothing and other specials, often priced at a dollar. The tax office may allow taxpayers to take deductions with receipts from thrift stores that benefit a non-profit organization.

BARTER

People living on minimum wage can save large cash expenses by bartering for regular or essential services. Offer hand knit baby clothes for dental care or trade dog walking for automobile repair. Look for local barter banks that let members contribute their own services or products and save up credit to trade on other services in the future.

FREE SERVICES

People living on minimum wage can still obtain professional beauty services. Local beauty schools or haircutting academies always need models to train students. In return, they offer free hair cutting, styling, body waxing and other services.

PUBLIC LIBRARIES

Local libraries offer a lot more than just books these days, and can provide free entertainment and education for people living on a minimum wage. Patrons can check out DVDs, CDs, and video games. Libraries may also loan out equipment such as DVD or video game players. Some libraries have collections of toys for pre-school children. Most libraries have generous funding to buy new books and other items for their collections. Most patrons don't know to suggest purchasing new materials so libraries often get few requests, and will purchase everything that is suggested. Public libraries also usually offer free Internet services.

BOOKS ON LIVING CHEAPLY

Writers are publishing a growing range of books that offer valuable tips for people living on minimum wage. One of the best is The Scavengers Manifesto, written by two people (Rufus and Lawson) who live so cheaply they haven't needed to earn regular paychecks for several years. Do an Internet search to find similar titles. Check these books out from the local library, or suggest they purchase them.

TRANSPORT

Whenever possible, people living on minimum wage should consider using public transport rather than driving a car. This saves on gasoline as well as vehicle maintenance costs.

FOOD

Shop at local farmers markets, where produce is cheaper than supermarkets. Organize a neighborhood bulk-buying program from a regional farm or discount warehouse to lower grocery costs. Look into qualifying for a local food bank to get a regular supply of tinned and dried goods. People living on minimum wage may also qualify for food stamps.

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