I Live on Social Security: Here’s How I Saved Up for a Car

Living on a fixed income can make big purchases seem out of reach. But for Jessica T., a retiree who relies on Social Security, buying a car was a challenge she was determined to overcome. Through careful planning and some creative budgeting, she managed to save up for a reliable set of wheels.

GOBankingRates spoke with Jessica about her journey to car ownership on a limited budget. Here’s how she made it happen.

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Cutting Back on Nonessential Expenses

Jessica’s first step was to take a hard look at her spending habits and identify areas where she could cut back.

“My son is an accountant and I think it’s in response to me never budgeting when he was growing up,” she shared. “But he taught me how to budget and now I’m a maniac about it. It’s helpful to have a goal.”

Embracing the Cash Envelope System

As part of her new budgeting system, Jessica employed the tried-and-true cash envelope method. How it works is simple: You withdraw the cash you need to cover certain categories that month and once the cash is gone, you’re done spending for the month.

“I’d take out my Social Security check in cash and divide it up into envelopes for groceries, entertainment, etc.,” she shared. “Whatever was left over went straight into my ‘car fund’ envelope. Seeing that envelope grow is literally the same as having a piggy bank as a kid. So fun!”

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Cutting the Cord on Cable TV

Like many retirees, Jessica initially clung to her cable TV as something she’s always known.

“I didn’t want to miss my Shonda shows,” she said. “But then I learned, of course, I didn’t have to with Hulu. So I got that and chucked the rest.”

Mastering the Art of Meal Planning

Jessica has always been the chef in her family but didn’t do a lot of planning in the past – in fact, she’d just pop to the grocery store a couple times a week and pick out what looked good. No more!

“My daughter got me on meal-planning YouTube and I’m addicted,” she shared. “I batch-cook for the week and since there’s just me, it really doesn’t take much time.”

By streamlining her grocery shopping and cooking habits, Jessica estimates she saved an additional $100 to $150 per month, all of which went toward her car fund.

Turning Hobbies Into Side Hustles

Jessica found creative ways to supplement her Social Security checks with small side gigs – namely, pet sitting.

“I love animals and can’t have one where I’m living, so this is ideal for me,” she said. “I use an app that hooks me up with sitting gigs and some of those people have become regulars. I love hanging out with new buddies – and sometimes the houses are really nice and have pools I can use!”

Jessica’s pet-sitting hobby brought in an average of $75 to $100 per month – all of which, you guessed it, went to the car fund.

Negotiating Bills and Seeking Senior Discounts

This often-overlooked strategy for saving money is simply asking for better rates on regular bills.

“I called my insurance company and asked if they had any discounts for seniors or safe drivers,” she explained. “Lo and behold, they knocked $30 off my monthly premium. I did the same with my cellphone plan and internet provider. Those small savings really add up over time.”

Jessica also became an expert at seeking out senior discounts wherever she went, from restaurants to movie theaters. “Never be embarrassed to ask if there’s a senior discount,” she advised. “Those few dollars here and there can make a big difference in your budget.”

Joining a Local Buy Nothing Group

Jessica spends a lot of time on Facebook and that’s where she discovered the joy of participating in her neighborhood’s Buy Nothing group.

“It’s amazing what people are willing to give away for free,” she said. “I just got a barely used microwave for free! Plus, I love it because I can get rid of the stuff I don’t want there and it feels actually helpful.”

The sharing economy means Jessica was able to avoid unnecessary purchases and save her dough for that all-important car.

Opting For Public Transportation and Carpooling

While saving up for her new wheels, Jessica got creative with her transportation needs. She learned her local bus routes and even joined a seniors’ carpooling group that she found on Facebook.

“It took some getting used to, but it’s actually like a game now,” she said. “Plus, I met some wonderful people along the way. While I definitely want a car, I know I don’t need one for every trip.”

Setting Realistic Goals and Celebrating Milestones

Throughout her saving journey, Jessica loved celebrating her milestones.

“I broke down my car savings goal into smaller, monthly targets,” she shared. “Each time I hit a milestone, I’d let everyone in my community know and we’d do a little cheers. I don’t know, it’s not anything special but it’s nice.”

After a year and a half of implementing these new habits, Jessica was able to buy a used Honda Accord at a great price. “It’s so satisfying to know I bought this car without any major changes to my lifestyle. Actually, that’s not true. The changes were good ones!”

This article originally appeared on GOBankingRates.com : I Live on Social Security: Here’s How I Saved Up for a Car