How to Budget on Minimum Wage (Step-by-Step Plan for 2025)
Living on minimum wage can feel like a never-ending struggle — but with the right system, you can take control of your money instead of feeling controlled by it.
Step 1: Know Exactly What You Earn
Start with your net income. Track all income sources and pay frequency.
Step 2: Track Your Expenses
Use apps like EveryDollar, Goodbudget, or Excel to track every penny for 30 days.
Step 3: Try the “70/20/10 Rule”
- 70% Needs (rent, food, bills)
- 20% Savings/Debt
- 10% Wants
Adjust if needed: 80/15/5 or 90/10/0 temporarily.
Step 4: List & Prioritize Expenses
Separate must-haves from nice-to-haves. Cut subscriptions and takeout.
Step 5: Use Cash or Prepaid Cards
Try envelope budgeting with cash or apps like Goodbudget.
Step 6: Save Something Every Paycheck
Even $5–$20 per paycheck helps. Use high-yield savings accounts when possible.
Step 7: Find 1 Way to Increase Income
- Ask for extra hours
- Offer small services
- Start a weekend side hustle
Final Thoughts
“Budgeting gives you permission to spend without guilt — and save with purpose.”