It’s expensive just to be alive these days, and so many people are struggling to make ends meet. The good news is that there are real-life hacks that will keep your expenses low and keep you living well for just $2,000 a month.
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That’s just $24,000 per year, after taxes. You’d only need to make $15 per hour at a full-time job to bring that home. That’s well below the median income for someone living in the United States, which is about $60,000 in gross income, according to Fidelity.
The bottom line is that you can bring home $2,000 or more per month. And you can live comfortably on that income. Here’s how.
1. Location, Location, Location
It’s all about location. Where you live will have a huge impact on the amount of rent or mortgage you’ll pay each month.
Look for smaller cities, rural areas and locations further away from big, sprawling metropolitan areas. If you do live in a metropolitan area that’s larger, you’ll have to settle with roommates or in a tiny apartment — this can save you tons of money in rent.
If you work remotely, or you’re living off retirement or other fixed income without working, you can look farther afield. Countries like Mexico, Costa Rica, Indonesia, Georgia, and more have a low cost of living. They’re also friendly to U.S. expats looking to relocate.
Target: If you’re flexible and patient, you can spend no more than $700 to $900 per month for rent and utilities.
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2. Stick to Staple Foods
You’ve likely heard this one many times, but you have food at home. Most people spend far too much money eating takeout or fast food.
On average, Americans spend $3,000 on takeout and restaurant food. You can cut your food bill way down if you stick to staple foods in your home like rice, beans, oats, pasta, eggs, cereal grains, and then cycle in seasonal produce. Keep it simple, keep it cheap and you can still eat quality meals. If you need extra, don’t be shy to go to the local food bank for free food.
Target: You can shop at big box stores for your staples and farmer’s markets or food pantries for your produce, and spend $250 a month on food.
3. Travel Smart
You don’t need a fancy car. You need a reliable car that will get you to work, home, school, and social events. That’s it. You could buy a car outright for $3,000 to $5,000 so you can avoid car payments.
Think a used Toyota Corolla or a Honda Civic from the early 2000s. It will give you another 5 to 10 years with minimal maintenance requirements.
You can also improve your health by taking more public transportation, riding a bike that you buy in cash and carpooling. These options are suitable for your social, emotional and physical well-being.
Target: Your goal is to only have to spend $200 to $300 per month in car insurance, fuel and maintenance. Spend as little as possible here.
4. Manage Insurance Rates
Speaking of insurance: this is one of those requirements that’s nice to have when you need it, but a huge pain to pay for when you don’t need it. In most cases, you’re much better off paying lower premiums and investing the extra money for a rainy day or emergency.
So look around for deals on your health insurance, car insurance, homeowner’s insurance, and health benefits. If your company offers you a health savings account (HSA), put money into that. It’s tax-free, and you can use it for any healthcare expenses you have during the year.
Also, look into community health clinics, the Affordable Care Act, if you don’t have healthcare through your employer, and other free or discounted options.
Target: You should be spending no more than $200 each month on healthcare and insurance.
5. Hack Away at Subscriptions and Utilities
When it comes to utilities, bundle as many as you can; you can often get internet, cell phone and even streaming services through the same provider at a steep discount. Call customer service departments and ask for discounts, look into rates for lower-income earners and look for trial periods for streaming services.
You can also sign up for an app that will track your subscriptions for you. That way, you won’t end up spending money on services you’re not even using.
Target: Your goal with these monthly payments should be to keep them under $100 per month. You can use libraries for books, movies, and other free entertainment. Don’t spend if you don’t have to.
6. Prioritize Free Entertainment
We repeat: Don’t spend if you don’t have to. There are tons of ways to get free entertainment. You don’t have to drop $100 every time you want to see a movie. You can go see a free movie in the park instead. Bring homemade popcorn and cheap candy from the market.
You can also improve your health as a means of entertainment with activities like hiking, biking, swimming in local lakes and rivers, and skating at a local park. With friends, you could host game night potlucks, have dinner parties or even swap yard work with your neighbors.
Bring drinks and pizza, and help your neighbor work in their yard. Next week, have them come to your house. It’s a two-for-one deal. You get help with your yard, and you get social time.
There are so many free ways to entertain yourself.
Target: Aim to spend no more than $100 per month on entertainment.
7. Invest, Invest, Invest
Finally, make sure you’re including investments in your monthly budget. Don’t let a month go by without putting money into an interest-bearing account. Even on $2,000, you can save 5% for emergencies. Then, you can use investment accounts to compound these savings.
According to Ramsey Solutions, $150 per month at the average annual return of 12% is $524,244.62 after 30 years. That’s assuming you never increase that contribution.
Target: Aim to contribute at least $150 per month to your savings and investments.
In the end, you can live well on under $2,000 and still have a buffer at the end of the month. It takes patience, a willingness to think outside the box, and a joy in investing and saving for the future.
As your income increases, make sure you increase your investments before you increase the cost of your lifestyle.
Sample $2,000 Monthly Budget
| Category | Target Spending | Notes |
| Housing and Utilities | $800 (range $700 to $900) | Rent and basic utilities (electric, water, gas). Assumes roommate or low-cost area. |
| Food and Groceries | $250 | Staple foods, seasonal produce, minimal dining out. |
| Transportation | $250 (range $200 to$300) | Car insurance, fuel, maintenance, or public transport and bike. |
| Healthcare & Insurance | $200 | Health insurance, prescriptions and low-cost clinics. |
| Subscriptions and Utilities (Internet/Phone/Streaming) | $100 | Bundled phone and internet, trimmed streaming services. |
| Entertainment and Leisure | $100 | Free and local activities plus occasional paid outing. |
| Savings and Investments | $150 | At least 5% saved for emergencies and retirement. |
| Buffer and Miscellaneous | $150 | Unexpected expenses and shopping (clothes, gifts, repairs). |
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This article originally appeared on GOBankingRates.com: How To Live Comfortably on $2,000 a Month Even with Inflation
