How to Save Money on Minimum Wage | Frugal Living

in this video I'll teach you exactly how to save thousands of dollars on very low income by the end of this video you'll know how to live well a minimum wage good to see you soon we got for lunch Oh a nice little bit of beverage still left in here fresh still some barbecue sauce left for lunch fresh got a lot left there all the main course clear that those beans still fresh mmm nothing tastes better than free I think we forgot some in here oh wait what is this yeah it's a like button in it frugal living a minimum wage is not near as Extreme as that just made it sound you can have a great life on minimum wage and you can save money to get ahead hey everyone micros art welcome back to my channel today we're gonna talking about something that comes up a lot in the comments a lot on Reddit and I just see it everywhere people come to me and say hey I have a low income I'm making minimum wage I'm making slightly above minimum wage therefore I can't subscribe to the fire movement I can't save money I can't get ahead and I can't retire early this video is all you guys think that you can't do it because you can I believe in you and I'm going to show you how it is actually very tough I can relate I've been there at 16 years of age I was making $9 an hour yeah I've made minimum wage at a lot of times in my life and be able to save money in those times 16 17 18 I was 19 living on my own at 17 I was making minimum wage and still saving money to get ahead so I'm gonna show you this video some secrets and tips that I used to live frugally and make those dollars on minimum wage stretch a lot further than you might think but the three things I want to get right out is build your safety net build a budget and then stick to it and then get your house in order and getting your house in order what I mean by that is getting your housing in order so the first thing you got to do is get a safety net in order it's really important that you build up that safety net that emergency fund if that means if the cutback I'm going out that means you have to just live and eat in and live at home that's what you have to do get ahead once you have a few thousand dollars saved up before that emergency fund that safety net you can protect yourself against those emergencies that might come up in your life maybe you getting a little fender bender maybe you have something come up with a health issue you've got to have that emergency fund there to give you that buffer room to make sure you can really survive on minimum wage and I think that's important even if you aren't a minimum wage is having that emergency find that buffer there for you so important the next thing really really important even more important than I think having a safety net is getting your house in order and I literally mean this you need to get your rent situation your has a situation under control for most people a minimum wage more than half of their income is spent just on housing that's super draining if you don't has a situation figure it out properly so what do I mean by that I mean rent hacking rent aking is the idea that you take a property it's got say three or four bedrooms in it you rent that property out and you get three other roommates to cover the cost of the rent I'll give you a real example so here in London Ontario the Metropolitan in Canada that has about half a million people you can find a three-bedroom property if you know where to look in a good area for about fifteen sixteen hundred dollars a month you might say whoa that's too much I'm a minimum wage here like there's no way I can afford that well hey you're gonna get a couple of roommates top offset the cost now a bedroom in my area on Craigslist er could you do your Facebook marketplace rents for around $500 a month so if you got three other roommates they recover your entire rent and you would live for free in the fourth room totally something to do you can have you can set up a situation where maybe even have an ensuite bath off your bedroom that feels great to live in that sort of situation maybe you rent out a duplex from a landlord and then rent the other unit out maybe you configured the house in such a way that you can get your living costs down maybe you have a significant other that has a one bedroom or bachelor apartment for $1,000 a month and you can split it with them $500 each that gets your living cost way down gets it under control there are tons of other cool options too like hey there are people who travel a lot for work and need someone to house set that's an option to live for free maybe you want to become an Airbnb manager and live in a property that's being Airbnb doubt and you can go ahead and get your living cost offset there are tons of creative solutions at your house I think that's the biggest one since I was 19 years old I've been house hacking and rent hacking so I'll rent places out and then re rent them out and sublet them so I can live for free that's a big line I think get your house in order is super important at the end of the day if you can get that biggest expense which is housing advocate under control and out of worry you're gonna be way further ahead you're gonna be able to start saving there's me tons other frugal tips I'd love to share with you in this video but I've got other videos you can check out where I literally talk about strategies to live frugally things like price matching loss leader shopping how do you get that thing under control about that budget that third thing a book to talk about because there's the emergency fund there's getting your housing in order because that's the one thing you can do like anyone can go ahead and rent a cor house hack and that one change can free up hundreds of dollars a month even thousands of dollars a month to better your financial future and that's where most people go wrong right people typically go wrong on the transportation their housing and their miscellaneous spending which gets them into debt and then once you're in debt it's very difficult to get yourself out of that debt snowball and I want to teach you guys a gun videos on the debt avalanche repayment strategy and the debt snowball or payment strategy to get you out of debt but you can do it because I've done it for the last eight nine years now I have lived on less than the poverty line the poverty line in Canada is twenty two thousand one hundred thirty three dollars a year if you make less than that you're considered below poverty I have never spent more than that in ever and let's remember that low-income individuals in Canada in the United States pay almost no tax so most people making that kind of income that are scraping by they're having issues with potentially maybe some substance abuse issues maybe they got they're spending out of control but if they had a budget they started tracking where they were spending their money and allocate that money very effectively you'd be surprised at how far it can go frugal living is the solution I think to most of the issues people are having right now with their spending is ninety seven percent of North Americans save less than five percent of their income that's a startling statistic when I was on minimum wage I was able to live and son basically half of that and save half of my minimum wage income I've done a video you can go check that one out it says how didn't retire in their twenties or thirties I'm a video I walk through the basic math how a husband and wife or boyfriend and girlfriend both working full-time and McDonald's could retire early in as little as eight years I've got another video coming out about how basically anyone a minimum wage can become a millionaire in a 20-year period by making a $10 a day choice you could save $10 a day you can have a huge impact on building your financial future and becoming a millionaire actually once you start to build up enough momentum that you start investing and saving that it starts at just 5 or $10 a day so let's figure out how do you get that budget under control first what do you have coming in how much money is actually coming in at the end the day I did some quick math from the whiteboard behind me our minimum wage here in Ontario you make around four hundred and seventy six dollars a week after tax and deductions for and seventy six dollars a week is a ton of money I live in nine bed five bath house where I rent out some of the other bedrooms in the lower unit and I have no living cost at all I've set up a situation where my mortgage payment my property taxes and my utilities are paid for by the other unit that's a great situation to be and that's an example of a house hack you may have need to save up down payments again in a situation but you can do that I used to do it with rent tacking as well before I had the money for a down payment I would just rent a place and then sublet portions that house out to cover my costs for and seventy six dollars a week goes really far towards Devorah payment towards building your financial future if you have your house in order maybe you have to carpool with someone to work and you say hey can I shoot you twenty bucks a week to carpool if you drive right by my house that's a win-win solution maybe you start biking to her I bike to work for many years to save on the cost of transportation it was great I got good exercise I got to stay fit and my wallet benefited so it's about making conscious choices I think we have to choose to better our financial selves and that comes through controlling your spending when you're on minimum wage you don't have a ton of income so you have to focus on how to be frugal and how to make that money last I would like to then teach you strategies to earn more money because I think on minimum wage you have a lot of potential to earn more money anyone coming over more than minimum wage we all have the skills to do it for instance you can cut lawns and make more than minimum wage you can make videos and make more than minimum wage there's so many things you could do to make way more than minimum wage if you're on minimum wage welcome to my channel because I'm gonna show you how to earn a lot more money not doing things like affiliate marketing and all these click Beatty MLM stuff because I'm not about that I'm guaranteed ways to make more money and those higher risk type activities are not guaranteed I can show you ways we can make $25 an hour and 25 dollars an hour guarantee you put in the effort you get the result it's not like if you're putting the time you get nothing that's what I'm here to help you guys with I want to share with the world the possibilities of the fire lifestyle because financial independence or retiree is amazing it's a it's you choosing to live the life that you want to live it's not really about the finances once you've understood the basic math behind financial independence and how easy it is to retire early once you realize that all you need is 25 times your annual spending if you put get 25 times your annual spending in an account you can live off that passive income and to get there there's a simple equation right basically have to take some videos on that is secret to retiring early and the secret to the 4% secret draw rate and check those videos out will link to them as well all of these videos basically are sharing with you that's it's doable and it starts with making one action today cut one thing up today what could you not do tomorrow it's gonna save you five or ten dollars could you cut your rent could you cut your transportation maybe don't go to the pub for a month do a no spend month just try it what it's a challenge it's a fun challenge I didn't know spend for one year challenge except for basic necessity so I didn't buy anything for a year that was a cool challenge that a lot of fun with that I saved a lot of money and that started to build my financial future and so I I really encourage you to take that on because I want you to see that you can better your financial future even if you're on minimum wage so all those people reaching out / saying I can't do it because of X or Y reason there's always a solution it's about asking how can I do it instead of closing your mind to the opportunity and saying hey I can't do that therefore I'm clicking out this video so stay on the video and if you're here already guys and you didn't air to smash that like button I would love it if you smash it like button and share this around I want to share that frugal living can be sexy it can be fun I have a family I have a daughter a three-year-old daughter people gonna come on here and say hey you can't be frugal on you know twenty thousand dollars of your living expenses because you don't have kids and I have kids you don't have a wife I have a wife whatever excuse you have there's a way to craft a solution or work for you maybe you say I have to live in a great neighborhood for my wife and I we had to live in a great neighborhood we live in a nice private call this a community with half million dollar houses all around and I still have host hack that into a free-living situation you can do the same thing you can live in a good area and have good things it really angers me to watch these extreme cheapskate shows and watch these people who are on minimum wage complaining that they have to share I watched one buddy ever lady has to share her she's living on the living-room floor with six other people and she's claiming it's because she makes minimum wage now we figured out her income is well over twenty thousand dollars a year so where is the twenty thousand dollars going she says she doesn't have money for rent she was evicted and she can't even pay any rent so she has zero dollars for rent where is the twenty thousand dollars going I've got strategies you can live on fifty dollars a week for healthy vegan food you can eat healthy quality produce things like avocado rich and nutrients and you can cook it yourself it's about making changes today right and the frugal living lifestyle is not it's not a bad lifestyle wish I I want to take you guys around my house and show you how nice it is we have one car and we shared that car we don't drive right off and we like to to walk in the bike and a lot of our activities are you know I like to watch movies like to hang out with friends like to go hiking and biking and walking and swimming and a lot of things I love to do gaming even they're all free so find free hobbies that's one of the secrets that I've always employed when I got out of the minimum wage situation and I got my first great job out of university and I was making at 21 years old fifty thousand dollars a year and some people are like that's nothing that's not a lot of money but to me is a ton of money cuz I grew up you know making $9 an hour my mom would grew up you know single-parent household my mom made minimum wage we struggled we were on food stamps a lot of the time and so I can really relate with that being strapped and going from paycheck to paycheck and the way to get out of it the easiest way to get of it there sure way to get out of it is to control your spending and embrace frugal living now it's hard at first EF start making conscious choices right you can't eat out anymore you have to start making food at home and maybe you have a stressful situation or a vice that's causing some of your your problems you may have to make a change if you smoke man to stop smoking if you drink you might have to learn how to occur back maybe do a 30 day no alcohol test 30 day no coffee I don't drink any coffee that's just me but you gotta find that advice whatever it is maybe it's lattes and peel that back for 30 days and say hey is this ad enough value to my life and maybe it is and if it is that's cool you can do that you can have that latte but you can't have that latte and that you know fancy new car and that fancy house and go to the pub every night and order lunch while you're at work you've got to make a choice you got to say hey I've got to make a sacrifice you choose your damn sacrifice and sacrifice literally means delaying the good now for more good later that's what sacrifices you have to give up now to get later and so I want you to do something for your future self if you're on minimum wage right now I want to start a pact with yourself to find a way look at what you're spending track where your spending is - hey what could I cut what is that one thing I could cut out to save ten dollars a day ten dollars a day that's all I ask do you to do that that's the one thing start paying down your debt me with that ten dollars a day save that ten dollars today by paying down the debt even make you a minimum payment of $10 every single day on your credit card debt or whatever it is that you have whatever bad financial debt you might have that's built up maybe you start saving whatever it is but make a change today that's what I'm asking for people out there today and I'd love to see in the comments I am excited to see whether people jump in and embrace through the living and say hey I'm a living wage I'd like to see him like how could I do this on nine thousand dollars a year check out early retirement extreme calm my favorite blog I embraced it 2009 2010 it's a great book early retirement extreme one of my favorite books written by Jacob Blunt Fisker he lives on 7,500 dollars a year him and his girlfriend lived on 7,000 dollars a year for a long time they lived they did RV living they rented an apartment in Chicago and split the rent but they've always been able to maintain around seven thousand eight thousand dollars a year living cost now he can do it and I've been to his house in Chicago I've had time with him and I can tell you he is a bit frugal I mean his thermostats a little loan that's not a job that's he's frugal buddy and he does grow some of his own food that's do some things that I think are a little extreme but they're not by any means decorating he's not suffering he's in great physical shape he eats very nutritious food he has fun he's changed his hobbies around things that he likes to build things for instance that doesn't cost a lot of money to work with wood and build things you can find hobbies that gravitate towards that make those shifts and changes in your life because at the end of the day it comes down to you don't get a grasp on your financial future and I think the way to take the bull by the horns and do that is to look yourself in the mirror and I mean literally look yourself in the mirror and say hey I need to make a change I'm not able to get by right now I say as it currently is and why is that most people will say I just need to earn more money and that's probably half the solution but it's not the whole one and yeah I just want frugal living to get out there as this alternative that like hey you could work your whole life in a cubicle even if you have a good job you can work your whole life and spend everything you were in and beyond that that treadmill and be in that rat race your whole life and never be satisfied or happy or you can have all the free time you'd like to do the things that you love to chase those passions and embrace for the living and maybe you have to sacrifice in a small way maybe you have to price-match at the grocery store maybe you gotta use some coupon hey maybe you don't have the opportunity to drive that brand new car that you love may have to use drive a used car but I tell you what it's gonna get you to point A to point B and you're gonna have a really enriching a satisfying life happiness look at the hedonic adaptation happen the hedonic treadmill you'll find that happiness does not come from it materialistic possessions and the minute we get that blip of hi little brand-new Ferrari or whatever it is that we think that we need that brand-new cell phone or whatever it is you think you need you'll be right back down to baseline within a few days and I can tell you this materialistic things do not bring you happiness and the frugal living lifestyle will make you happier than you would have been with the consumeristic materialistic lifestyle so join the minimalist movement join the fire lifestyle and embrace that and you'll begin to unlock financial independence for yourself and you'll be retiring early and living the dream you want to live living the life you want to live working the job that you want to work because you choose to do it not because you have to do it that's what I won't follow you guys thank you for watching this video and if you did enjoy it I love you shared it that would be honest and that'd be so cool and of course people watch the first intro are gonna say hey that's what it's like being frugal is like cheapskate extreme it's not cheapskate extreme it's very an enriching life and I want that for all of you guys the Internet is at our fingertips Entertainment is there and it's free we can choose those frugal habits and have fun with friends and family because that's really what it's all about is those spiritual deeper connections in life that really do bring us happiness so the years the outro they do it every single my videos guys the secret to unlocking a wealth to you starts with spending less learning how to earn more and then maximizing the difference or maximizing the returns on the money that you have saved that's all it is guys that's the secret so well thank you all for watching so much I'll see on the next video fresh still fresh [Music] you [Music]

Channel: Mike Rosehart

Views: 50,483

Keywords: mike rosehart, Frugal, frugality, frugal living, save money, save money on low income, low income, minimum wage, budget, gabe bult, save, money, early retirement extreme, savings, low salary, ways to save money, money saving tips, money saving tricks, simple living, save money fast, save money minimum wage, minimalist, minimalism, save up, millennial money, make money minimum wage, saving money, how to save money, how to save money fast, tips on saving money, canada

Id: XItdiXkkiYQ

Length: 18min 35sec (1115 seconds)

Published: Sat Jun 08 2019