The cost of living varies from area to area. It can vary from person to person, too. So, how can you live on £1,000 a month? Could you easily reduce your expenditure, bills and responsibility costs to fall below this magic figure? Believe it or not, even if you have plenty of responsibilities, it is perfectly possible to live on £1,000 each month, even less.
However, you’re going to have to start thinking creatively. What’s more, you may have to make reductions and big lifestyle changes. If you’re intrigued to learn more and are willing to do what it takes to reduce your monthly spend, read on – I have plenty of ideas to share with you.
Here’s How To Live AND Thrive on £1000 Per Month
Reduction, Reduction, Reduction
Of course – when it comes to learning how to live on less than £1000 a month, you’re going to need to look carefully at what your outgoing money is looking like. In some cases, you may find that you are paying out more than you really need to. Consider instances, for example, where you are paying for services you simply don’t use. There may even be hidden fees and direct debits you’ve forgotten to cancel. The art of living on less than £1000 starts with cutting back.
It also goes without saying that you will need a budget and a way to keep track of your incomings and outgoings. You could do this manually using a simple spreadsheet. Another option is utilising a budgeting app. Plum and Money Dashboard are a couple of excellent options.
What Should I Cut Back On?
Let’s take a look at a few common factors which can really rack up the extra expenditure each month.
- Look at your shopping or grocery bills. Are you buying branded products? Do you mind shopping somewhere else if it is cheaper to do so? You may be the sort of shopper who buys food on an empty stomach. Think about doing a weekly online shop to really reap the financial benefits.
- How much you’re paying for your energy. Are you on the cheapest tariff for your needs? Are there ways for you to cut back on what you’re using? Don’t be afraid to compare energy suppliers, or to ask for help from your current supplier. There are some great offers available at the moment such as £50 cashback when you sign up to Octopus Energy. I’ve been with them for a few months and have been very impressed with their customer service and my tariff is considerably cheaper than my previous supplier. They also covered my old supplier exit fees.
- Are you subscribed to any contracts you could cancel? Once you’re out of commitment, you can cancel down entertainment and phone packages to the bare minimum. Think about the services you really need, not those you really want.
- Look at your travel fees. Is it worth you running your current car? Alternatively, are you spending too much on public transport? Look for cheaper routes or season tickets. For car commutes, think about a car share scheme or similar. Alternatively, could you cycle to and from where you need to be?
These are just a few ideas to help you get started. I’ve blogged at length about ways for you to save money and to make more cash recently. Take a look at my previous guides and posts to get a real flavour for other ways to cut back.
Save on Living Costs and Rent
For many people, living costs are going to be the big cash drainers month after month. Most of this comes from rent. If you are a single person, are you necessarily paying a fair amount for what you get? If you don’t mind sharing with another person, is it worth renting an extra room you may have out to lower the cost of ground rent? Many people, especially those who may be studying or who have graduated, consider sharing spaces with others to cut down the cost of everyday housing.
If it’s an option you may also want to consider moving location to a cheaper place to live. Obviously this isn’t an option for everyone depending on working arrangements, family etc. However if it is a possibility for you it could offer considerable savings in the long term.
You may also want to look into joining a flat share or house share scheme if you want access to low-cost rent from the off. It is also well worth looking into housing or rental opportunities where certain bills are included in costs. This is where a lot of people save money each month – as the cost of running a property may often be rolled into ground rent if a landlord agrees to it.
However, you will have to be careful when it comes to shopping around for lower rent costs. Lower rent fees may often mean you get access to poorer quality housing or less space. However, providing you rent with a reputable letting agency, and ask for a full tour of your new property before you get started, there is no reason why you won’t be able to net yourself a nice little bargain.
If you’re already renting and want to share costs with a flatmate, make sure your landlord agrees to it – and present your property well!
Other Ways to Slice Everyday Costs
If you’re already learning how to live on £1,000 a month, you may already be looking at coupons and vouchers. Online voucher sites and cashback apps such as Airtime Rewards are rife nowadays. Thankfully, it’s no longer seen as a stigma if you want to save a little bit of money on everyday food, drink and entertainment.
If you’re finding it difficult to earn a little extra cash on the side, it’s worth subscribing to coupon sites and downloading apps such as Groupon and Wowcher to your phone. In many cases, you’ll be able to shave 10% or more off groceries, activities and more which you’d otherwise be paying full price for. Certainly don’t be afraid to go digging for a bargain.
FREE STOCKS Worth up to £1,000!
Want to get your hands on over £1,000 in free shares? Check out our guide to the latest free stock offers to get started
One great way to learn how to live on less than £1,000 a month is by starting to look at cashback sites like Quidco. You may be able to claim back free credit on big purchases, such as on energy payments, grocery bills and car accessories. It can take a while to build up a good cash pot through these sites, but it’s still well worth digging.
Can You Live on £1,000 a Month?
Knowing how to live on £1,000 a month is easy. Doing it can take a lot of time and practice. It’s going to depend on how much you may be willing to sacrifice each month, and whether or not you have responsibilities which demand more cash than you can handle. However, by putting some of these ideas into practice, you may find yourself saving more than you anticipated.