How to save on minimum wage

This post comes from J.D. Roth at partner blog Get Rich Slowly.

It can be tough to get out of debt and build savings even if your income is above average. If it's average (or less), the challenge becomes even greater. And what if you're earning only minimum wage (or something a little over)?

In cases like this, is saving even possible? Recently, a reader named Andrew asked this question on the Get Rich Slowly page at Facebook:

Hey. I have a question. I am going to be gainfully employed again, and it's going to be starting a dollar above minimum wage. I'd like to be able to save even though most friends of mine think it cannot be done. How can I save even though I'm living on slightly above minimum wage?

I love this question. Andrew should be applauded for his desire to get ahead financially even though his income is limited. That's a great attitude.

Before I share some suggestions, I should note that in order to achieve big financial goals, Andrew will eventually need to make more money. I'm guessing he already knows that, though. For now, let's focus on making the most of his current income.

Because his income is relatively low, Andrew's only choice is to cut costs. In order to have money left over to save, he has to reduce his basic expenses. That's easy to say, of course, but it can be more difficult to put into practice. My top recommendations for cutting costs quickly? (Post continues below.)

I think his first step should be to tackle the big stuff:

• Housing is the biggest budget-buster for most people, and if Andrew can keep this cost low, it'll help him create a surplus he can save. That means finding a cheap room for rent, or sharing an apartment with a roommate -- or maybe even living at home with his parents.
• Transportation is another huge expense, and if Andrew can keep his costs low here, that'll allow him to build savings. His best bet is to opt against owning a car (unless it's too late). If I were making minimum wage, I'd travel by walking and biking and riding the bus.
• Food can chew up the cash, too, which is probably why Get Rich Slowly readers tend to love articles about how to make the most of your food budget.

I also think one key to being able to save while earning a small income is to reduce recurring monthly expenses. For instance, if you're making minimum wage, I think it's a good idea to skip the cellphone. (If you need one, use a prepaid cellphone instead of carrying a contract.) Don't have cable television, subscribe to magazines or join a gym. In fact, don't sign up for any sort of ongoing recurring expense. These expenses are like anchors, especially when your income is limited.

• Smart Spending on the go: Get our app for Android or iPhone

By doing these things, Andrew should be able to keep his expenses low so that he's able to end up with a surplus. And what should he do with this surplus? Open a savings account, of course! If he doesn't have one already, he should build his emergency fund so that he's prepared for the stuff life flings his way.

Those are my suggestions for Andrew. What are yours? If you were (or are) making only minimum wage -- or a little above -- what sorts of things would you do in order to save money?

More on Get Rich Slowly and MSN Money:

• Are you afraid to earn more?
• How to retire early
• All I ever worry about is money
• How do your finances stack up?
• Time to raise national minimum wage again 
• Calculator:Is your budget in balance?