Budget Planner: How To Budget When You're Broke

Budget Planner

Unless you're a money nerd like me you're probably not going to get too excited about a budget but it's boring and as intimidating as a budget seem. it's also incredibly necessary if you want to make progress with your financial goals like getting out of debt, buying a house, traveling or anything else that requires a large amount of money, at the same time if you are broke you probably don't think you can have a budget

Read: Budget Planner: How To Budget & Save Money

It's hard to manage your money when you don't have much of it, but that's why it's even more important for you to have a budget so you can get your money straight and hopefully get to a point where you're not broke anymore

Here is some advice for budgeting when you're broke

Tips 1: Assess Your Financial Situation

The first thing you want to do is assess your situation, make a list of everything, your income, your expenses and not just your regular monthly expenses but your irregular expenses too, one of the biggest reason our budget fails is because we don't account for unexpected expenses like insurance premiums, holiday spending, your friends birthdays, domain renewals and much more.

I even have a fudge category in my budget for regular unexpected things that pop up and I probably shouldn't be calling them unexpected expenses if they happen every month

Tips 2: Identify Your Problem Spending Areas

make a list of your problem spending area and focus on your saving on those areas, it's important to give yourself some breathing room in your budget, but knowing and being aware that those are my problem spending areas helps me focus my saving energy, from there find ways to cut back on your bills

Tips 3: Cut Back Your Spending

Before anything you want to make sure you have an emergency fund, setbacks happen, and the last thing you need is to destroy your budget and your financial goals because your car breaks down or you have some other kind of financial emergency, 

Even if you save a few hundred bucks just make sure you have a little cushion, after that go after your debt, come up with a plan to pay it off using either the debt snowball method or debt avalanche method and if those words mean nothing to you don't worry I will explain everything in details on my next article

Once you have your goals whether it's to get out of debt or save for something else, break them up into smaller bowls, for example if you want to pay off an extra thousand dollars worth of credit card debt this year, break down that up into a monthly goal of $83 a month that you're going to throw at your credit card

Then incorporate that goal into your budget, make a category for that goal in your budget, once your budget is in place look for opportunities to increase your income

Rent out your car, find a side gig, as you get used to using your budget and get comfortable with it you're going to make mistakes, we all do.


That's it a few steps to help you get started with the budget when you don't have much money to budget with, 

  • Assess your situation
  • Find ways to cut back
  • Come up with a plan for your money goals
  • Look for ways to boost your income


I hope this helps you out with your budgeting

Author:

Hi, i am Micheal, the guy behind Roadtosuccesse. I share tips and tricks to help take a business to the next level, show which systems I personally endorse and use, share what I learn as a student of the game, and help people with personal development so that they can reach their full potential.

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