Can i live off 20000 a year

If you live in an area with public transportation, you're in luck. Unless you absolutely must have a car to get around, public transportation offers an inexpensive alternative. In fact, it can save you thousands of dollars each year. Even if you own your vehicle outright, you must still cover other costs.

Gasoline, maintenance, repairs, and insurance can drain your bank account quickly. It is important to note that coronavirus has led some city transportation systems to reduce hours of operation and limit routes. In addition, depending on the spread of the virus in your town, it may not be safe to crowd onto public transportation right now. Still, if you're considering selling a car, take the opportunity to learn more about the options in your area.

It may be a worthwhile move. If public transportation is not available in your area, check to see whether rideshares would cost less than car maintenance. This will depend on your area, the distance you need to travel, and the time of day you usually need a ride.

And if you live close enough and you're in good health, think about walking when the weather permits. Lastly, if you are among those who have worked from home during the COVID shutdown, ask your employer to allow you to continue doing so. You'll save money on transportation.

You might also be able to trim your budget further by making your own coffee each morning and grabbing lunch from the refrigerator. And check out food banks in your area where you can go to fill your cupboards between paychecks. You don't need to be unemployed or starving to qualify for a food bank.

If you're struggling to pay for groceries, a food bank in your community would love to help. How else can you save on food? The United States Department of Agriculture reports that the average American wastes about one pound of food each day. While that may seem outrageous, consider the number of times milk or produce has gone bad in your refrigerator, or how often you find yourself tossing leftovers rather than eating them the next day.

Here are a few more ideas for saving on food and avoiding food waste :. Debt is a vicious cycle, regardless of your income level. Sometimes, debt is unavoidable. It's important to understand what kinds of debt are "good" and which ones are "bad" so you have the best chance of paying off your debt and keeping a good credit score. If you're struggling to make ends meet because of an unexpected expense like medical bills, major car repairs, or something similar , try these solutions instead:.

If overcoming debt is part of your financial experience, be sure to include that in your budget. If you find yourself in a debt situation that feels impossible, seek help. A non-profit debt management agency like the National Foundation for Credit Counseling provides valuable resources, and can direct you to an accredited counselor.

The bottom line is this: Your future matters. Once you take control of the big-ticket items, you can create a budget that truly works. Your top goal should be to build or grow an emergency fund to carry you through rough financial waters and invest in your retirement -- even if you start small.

Many people are missing out on guaranteed returns as their money languishes in a big bank savings account earning next to no interest. The Ascent's picks of the best online savings accounts can earn you more than 8x the national average savings account rate. On American Express' Secure Website. Best For: No monthly maintenance fee. She is also a newly single mom to two beautiful little girls. She chronicles her journey as a single mom trying to make it big at www.

Other Options. Get Out Of Debt. How To Start. Extra Income. Build Wealth. Credit Tools. Luckily for you it is. Table of Contents What You Need. To Ensure Success So, this might be much easier when you're single. What other tips do you have for someone trying to live a low cost lifestyle? Alexa Mason. Share 3K. Pin Connect with. I allow to create an account. When you login first time using a Social Login button, we collect your account public profile information shared by Social Login provider, based on your privacy settings.

You'll save money, and you'll save perfectly great things from rotting in a landfill. Don't ignore lightly worn or dirty items. Be ready to bargain. This doesn't mean you have to be harsh -- let people know your situation and a decent compromise and most people will give you a discount. Buy items you use regularly in bulk. You can shave off some dollars from your "essential expenses" if you buy more things at once. You can grab toiletries, food, and cleaning supplies through the internet or at bulk stores to slash your expenses down bit by bit.

Note, however, that you likely need to pay more upfront to get goods in bulk. The bigger the item, the lower the unit price. Keep an eye out for free entertainment. There is so much to do that costs absolutely nothing -- and all you have to do is look. Check out bars with free music, local art galleries or museums that often have free nights , or your Parks and Recreation Department calendar.

The classics -- going for hikes, setting up game or movie night, adult sports leagues -- are also great ways to make your own fun without spending a dime. Join a group or adult team to get weekly fun for almost nothing. Do some online searching to see what's in your area. Shop with a purpose. Know what you are buying before you go to the store, and stick to it. Making lists of priorities, essentials, and goals will help you keep your head on straight when shopping, allowing you to make the most of every dollar.

Remember -- every time you buy something you should ask, "do I need this? Method 3. Give yourself a savings goal, something to strive for instead of spending money. Maybe you want to go on vacation, buy a car, move to a new city, save for school, etc. If you have a tangible reason to save money, it will be much easier not to blow it on a new video game.

Give yourself an exciting financial goal and saving will be much more doable no matter what your budget is. Try to live in a lower-cost area or city. Your dollars go a lot further in smaller towns, rural areas, and inland cities. While your salary or income might not be changing, you can change its relative value by moving to a city where everything costs less.

Search online for "Cost of Living Comparisons," which provide up-to-date information on prices across the country. Cut down on addictive and needless habits like smoking, coffee, and sweets.

Cigarettes will get even more expensive. At the end of the day, saving money and budgeting requires sacrifices -- you should find a way to cut out these needless expenses. Even cutting these habits in half can make a big difference and is a great starting point. Find alternative, cheaper habits whenever possible.

Whenever you get an urge smoking , fill in your new habit taking a walk around the block as a replacement. Use credit cards very sparingly, making sure you can pay off in full each month. Credit cards aren't free-- they come with interest rates that will gouge your paycheck if you let them run rampant. Managing your money wisely means using your credit cards wisely-- as extensions of your well-planned budget.

Some things to remember: Know your rates and how they can change. If confused, call your bank and make sure you understand your terms and interest. Pay more than the monthly minimum whenever possible, as this decreases later interest payments. You never want to be reaching your limit, as the interest will become exponentially worse. Take cash out from the bank, separating it into envelopes for each expense if you struggle to budget.

A debit card can be dangerous -- you keep spending without seeing the money leave. If you struggle to hit a budget, take all the expense money out at the beginning of the month and put it into envelopes -- food, gas, rent, utilities, fun, etc. This ensures you only spend the money where it was meant to be spent. Ensure you have months living expenses saved at all times. Many financial advisers even suggest going further, saving for at least months, but 3 is the bare minimum.

You need to be financially prepared in case of emergencies. Remember, also, that this money should only be spent in emergencies. Gross is probably used because people have different taxable brackets.

You would need to calculate how much you would pay in taxes and retirement to come up with your net livable income. Yes No. Not Helpful 2 Helpful 4. It is ok for the younger people, but I have medical co-pays which are expensive and house taxes and car upkeep. To break everything down I actually have nothing left and end up charging groceries. What else can I do? In this situation, cut any expenses possible and do more with less.

Be preventative in auto care, house repairs, and health care. Make meals in bulk and freeze them. Buy used clothing and learn skills to be more efficient, like sewing, baking, making simple repairs, and building. Utilize the internet to educate yourself.