Woman Reveals How She Has Been Living off $50 per Month Since January

The average American spends almost $165 every day, according to a study. But one woman has managed to live off $50 per month since the start of 2023.

Alexis Howard, 28, who lives in San Francisco Bay, told Newsweek: "I am on a financial cleanse."

The wealth advisor explained she stretches her money each month on non-essentials like social activities, beauty services and shopping. Whereas the sum from the aforementioned survey conducted by finance company GOBankingRates included bills too.

"I am not experiencing an income or living crises but want to reset and practice being more intentional with my spending and money habits," Howard told Newsweek.

The monthly allowance covers the following items:

• Going out to eat/take out
• Nights out with friends
• Social activities and gatherings
• Shopping
• TV subscriptions
• Nail/hair services
• Rideshares (unless for an emergency)
• Gift giving

Essentials like rent, transport costs, groceries and major life events like weddings are not included in the budget.

GOBankingRates analyzed annual expenditure data from the Bureau of Labor Statistics in 15 categories covering both necessary and discretionary spending to find out how much the average American in each age generation spends in a day.

Gen Z's spend the least at $92.13 per day and people aged 45 to 54 spent the most at $202.48.

"While this challenge has been refreshing, it is also very limiting. Hair maintenance and trips to the nail salon are not included in my budget and I do miss the convenience of having access to these services," Howard told Newsweek.

Recently, Howard's TikTok video went viral on her account @financiallybrave and racked up 1.9 million views. The footage was filmed halfway through July and she was left with just $17.34 to spend.

During the clip, Howard speaks about her "two reality rule," this is when she acknowledges "both the negative and positive sides of a situation but then solely focus on the positive." She states this method is an "important mindset to embrace when budgeting."

Howard goes on to give an example of what happened on July 11. She explains the bus drove past her when she was heading to work and she was unable to order an Uber due to the strict budget. However, the delay meant she had an extra 10 minutes to enjoy before starting work.

Describing her shift, she said: "Work was full of plenty of meetings and a stressful presentation so I was ready for some downtime after I got off."

However she was unable to "treat" herself to a takeout but she was able to enjoy a "nice walk" with her dog which was a "cheaper and healthier alternative."

5 Ways To Save Money

Howard has shared five money saving tips with Newsweek but she urges people to focus on the behavioral and psychological aspects to successfully save their dollars.

"It's your mindset that will determine your success and level of discipline," said Howard.

1. Be prepared and be willing to set boundaries with your friends and loved ones. They will likely, and unintentionally, test your boundaries. Get comfortable with saying "no."
2. Be prepared to sometimes fall short on your goal and have a plan to remain resilient.
3. Find your areas of weakness and then create a plan to address them.
4. Seek out free events in your area.
5. Use acts of service or baked goods/meals as a form of gift giving.

Howard explained she was "shocked" to discover fun and free local activities.

She told Newsweek: "Google your hometown and you'll likely be pleasantly surprised about the entertainment you can access at no (or very little) cost. Use these spots as locations to meet up with friends."

Explaining her weakness, Howard states she used to frequently order food as she enjoys the "readiness of a meal" but now she buys ready to go meals at grocery stores.

Do you have a monetary dilemma? Let us know via life@newsweek.com. We can ask experts for advice, and your story could be featured on Newsweek.