(2024) How to Live on £1,000 a Month: It's Tough, but Doable! (2024)

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, it is possible to live on £1,000 each month. However that comes with big caveats – it is likely possible only if you’re a single person. If you have a family with children or dependents, the unfortunate news is that it will be near impossible to do so.

To hit the £1,000 a month target, you’re going to have to start thinking creatively.In this highly inflationary era, it is no doubt increasingly tough to make ends meet so 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

According to the Minimum Income calculator, rent and food are the two biggest sources of expenditures for people. It therefore makes sense to cut those expenses as much as possible. There are other items like expenses on going out, energy bills, and services that are also meaningful draws of cash.

Of course you can’t stop eating or living, but if you are set on hitting that £1k per month target, all options needs to be on the table. Let’s dive into some more details.

Reduction, Reduction, Reduction

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.Examine your expenses from the last several months to understand where you are spending most of your money.

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. Chip, 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.The average grocery bill continues to climb each year, so this is a great place to start. 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 (Hint: shopping on a full stomach leads you to buy less junk food!).If you have a garden, doing some gardening and growing your own veggies would be a great way to cut down on your grocery expenses.
  
• 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.
  
• 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

Aside from people that own their own homes fully (no bank loan pending), for most people, living costs are going to be the biggest cash drainers month after month.And 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 students or young adults, consider sharing spaces with others to cut down the cost of everyday housing.

If it’s an option, moving in with a family member would be a great way to reduce or eliminate your rent while bring you great social ties. If you’re young, you could move in with your parents. Alternatively, if you’re a pensioner, you could consider living with your kids and their families. While most people may groan at this idea, don’t forget that in the West, loneliness is a major problem and we underestimate the value of living with family – despite some of the drama that may bring.

Alternatively, 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.

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 and maximizing your Nectar points.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.

Eliminate Any Debt

If you are carrying any debt, the single best thing you could do to cut your monthly expenses is to reduce your debt. With rising interest rates, the monthly cost of debt has been climbing steeply. Interest costs therefore become a punitive tax and eat in to your budget. If you have some spare cash, I recommend paying off as much of your high-interest debt as possible.

Consider increasing your income

This is easier said than done, but for some people like pensioners or those who have spare time, there is the option to increase your income by doing some side activities. Some jobs can even be done from home!

Increasing your income by even £100 a week can add up to over £400 a month. This can help get you breathing space so you don’t have to make drastic cuts to your lifestyle. Living on £1,500 a month, for example, is much easier than trying to live on £1,000 a month.

How much does a single person need to live on in the UK?

A single person in the UK (living outside of London) will need anywhere from £25,000 to £30,000 per year to cover the minimum living expenses. This works out to £2,100 to £2,500 per month. For a single person living in London, the minimum annual expenses can range from £31,000 to £36,000. This works out to £2,600 to £3,000 per month.

Can You Live on £1,000 a Month?

It’s possible, but definitely not easy. As you can imagine, attempting to live on £1,000 a month if you are single, is going to be easier than if you’re in a family with kids as your expenditure will be much lower.

On average, a single person living outside of London can potentially make ends meet with just £2,100 a month. However the average monthly household expenditure in the UK is £3,000. Cutting down your expenditure from £2,100 to £1,000 is a bit easier than cutting it down from £3,000 to £1,000.

Regardless of your situation, cutting expenses can take a lot of time and practice.It’s going to depend on how much you are 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.

Can I Live on £1,500 a Month?

As a single person, your odds off being able to live on £1,500 a month are definitely better. It is likely not feasible if you have a family though.

FAQs

by Jon Craig

I am the creator of Project Financially Free and I started this journey to both educate myself and share my insights on personal finance. I’m passionate about financial literacy and I invite you to join me on this transformative path. See more.