How To Easily Find an Extra $1,000 in Your Budget, According to Rachel Cruze
Written by
Ashley Donohoe
Edited by
Zuri Anderson
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A Bank of America Institute report showed that around 24% of American households were living paycheck to paycheck in 2025, with inflation rising faster than wages for low- to middle-income families.
Having an extra $1,000 each month would be a welcome relief if you’re financially struggling, as it would give you room to pay off debt, cover rising expenses and handle big purchases with more ease. However, you might not have the time or energy to find ways to boost your income.
In a recent YouTube video, money expert Rachel Cruze outlined five ways to find an extra $1,000 in your budget with no side gig or overtime required. Consider combining multiple strategies to maximize your reclaimed money.
Pause Your Retirement Contributions
If you need the extra money due to debt, Cruze advised temporarily pausing your retirement contributions until you’ve cleared the balances. Depending on your salary and current contribution rate, you might get back several hundred dollars or more in your monthly budget.
Once you can resume investing, Cruze suggested regularly contributing 15% of your earnings. Note that Dave Ramsey’s 7 Baby Steps call for following this retirement contribution strategy after clearing all non-mortgage debt, as you can still put extra money toward your mortgage while you invest.
Adjust Your Tax Withholdings
According to the IRS, 117.6 million individual taxpayers received federal income tax refunds in the 2024 fiscal year. While many people view tax refunds positively, Cruze explained that’s not really the case since the government has had your money the whole time and not given you anything in return.
“That’s your money that could have been being used to pay off debt or to save even in a high-yield savings account,” she said.
If tax refunds are normal for you, use the IRS tax withholding estimator and then update your withholdings via IRS Form W-4 so you can avoid overpaying taxes and boost your paychecks throughout the year. Check with your employer about whether you can submit the information through your employee portal or if you need to submit a paper form.
Sell Items
Getting extra cash may be as simple as selling some of the old stuff that is cluttering up your home. While you could host a simple garage sale, Cruze suggested using online platforms like Facebook Marketplace to list furniture, clothing, accessories, gadgets and other items.
To maximize your profit, research what other people are paying for your items and choose your payment option carefully to minimize fees. A blog post from another Ramsey personality, George Kamel, included additional tips such as making your listings detailed and clear, deciding on shipping versus local pickup options and spotting signs of scams.
Make a Few Significant Budget Cuts
While sacrificing luxuries and conveniences might seem like a punishment, you can view it as a temporary lifestyle change that involves carefully scrutinizing your needs versus wants. The savings potential from cutting even a few nonessential budget items could surprise you.
“When you look at gym memberships and streaming services, restaurants, food delivery fees, when you cut all of that out, you could easily get $200 to $300 back into your account,” Cruze explained.
Reviewing your budget and bank statements should clue you in on where you can cut back. You can also try a budgeting app like EveryDollar to understand your spending better.
Shop at Aldi
Since groceries can eat up a sizable portion of your budget, changing where you shop is a worthy strategy to save some cash. According to Cruze, switching from a different grocery chain to Aldi might cut your bill by $100 or even more. This grocery retailer can offer lower prices due to its efficiency, small selection and private brands.
As a frequent Aldi shopper, Cruze said she has been happy with the prices and quality. Her kids even sometimes request certain Aldi products, such as macaroni and cheese.
However, you should still compare the chain’s prices with those of other stores, especially if you want name-brand items. It also helps to be open to trying Aldi’s private brands, which come with the generous “Twice as Nice Guarantee.”
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