Step-by-step Plan for Saving $23,000

It sounds like you’re doing an excellent job tracking your expenses and planning ahead despite tight finances. Saving $23,000 on your current budget will be challenging, but with strategic adjustments, it’s possible to make gradual progress. Here’s a step-by-step plan tailored to your situation:

1. Budget Breakdown

Let’s summarize your monthly income and expenses:

Income: ~$1,700 to $1,860 (bi-weekly pay of $850–$930)
Rent: $899.99
Electricity: $303.50 (overpaying, can cut)
Internet: $51.78
Laundry: $140
Groceries, Hygiene, Pets: ~$300
Shoes: ~$10/month (averaged over 6 months)

Current leftover (best case): ~$154 – $300/month This is without cuts or major adjustments yet.

2. Immediate Savings Adjustments

Cut Electricity Overpayment: Pay what you owe only. Call your provider to discuss an actual owed amount. This can immediately free up at least $50-$100 monthly.
Internet Alternatives:
- If you cancel Internet, see if public libraries, cafes, or workplaces can fill that gap.
- For home, check for lower-cost plans like community broadband programs or temporary subsidies.
Laundry Hacks: Your laundry costs are high at $140. Instead:
- Use a portable washing machine (manual or electric): ~$50–$100 one-time investment. It’ll cut laundromat washing costs. You can then use dryers for a fraction of the current cost.
- Focus on washing essentials only (work clothes, undergarments) weekly. Larger items like bedding could be done monthly.
Shoes/Clothing Needs:
- Look into discount retailers like Goodwill, Salvation Army, or thrift stores for high-quality, durable jackets, clothes, and shoes.
- Outlet stores (like Marshalls or Ross) also sell branded shoes for under $60.
- Buy “end of season” items when they go on sale (winter jackets in spring).
Utilize the Food Stockpile Wisely: Since you have beans and rice for months, reduce grocery expenses to $150–$200 monthly by limiting non-essentials. Focus only on essentials: fresh produce, pet supplies, and hygiene items.

3. Building the Savings Plan

With the above adjustments, you could save an extra $100–$200/month.
Open a high-yield CD for your savings goals:
- Start small (e.g., $500–$1,000) in the 5.25% CD for 12 months. This builds passive income.
- Keep rolling over CDs into new ones upon maturity to maximize compounded interest.

Example Calculation: If you save $200/month into a 5.25% CD:

After 1 year: $2,467 (contributions + interest)
After 3 years: ~$7,670

It’s slow but steady growth.

4. Longer-Term Goals

To reach $23,000:

Side Hustles:
- Look for remote, flexible side gigs: data entry, freelance writing, pet sitting, or tutoring. Even an extra $50–$100/week can accelerate savings.
- Consider apps like Fiverr or Upwork.
Saving on Furniture:
- Look for free/discounted furniture on Facebook Marketplace, Craigslist, or local “Buy Nothing” groups.
- Prioritize basics: a small table, dresser, and chair.
Plan Clothing Gradually:
- Budget $20–$50 monthly for clothes, focusing on essentials like jackets, pants, and socks. Thrift stores are your friend here.
Seasonal Work: Consider taking up seasonal part-time jobs around the holidays or tax season.

5. Final Priorities

Emergency Fund: Save at least $500 for emergencies (unexpected repairs, health, etc.) before aggressive saving.
Track Spending: Use free tools like Mint, YNAB, or Excel to monitor where every dollar goes.
Keep Motivation High: Break the $23,000 goal into smaller milestones (e.g., save $500, then $1,000).

If you implement even a few of these changes, you’ll gradually reduce expenses and grow your savings faster. Start with electricity, laundry, and food costs—you’ll likely feel a financial shift quickly. Keep it up—you’re already doing great under tough circumstances!