Budget Basics: How to budget even on a low income
Budgeting doesn’t have to be all complicated, but you have to start somewhere. You can't keep whining about being stuck in the same financial mess if you’re not changing your ways. Let me ask you something: can you remember what you ate exactly a week ago? If not, why the heck are you only budgeting on a weekly or monthly basis? That's why you gotta budget every freaking day. Take five to ten minutes out of your day to check out your finances. See what's coming out of your account, check your due dates – get on top of it.
Most people avoid dealing with their finances because it's a constant reminder of where they don't want to be financially. It might seem easier to dodge checking the mail, unknown calls, or straight up avoiding looking at your bank account after a weekend of fun. But guess what? You can dodge it or ignore it all you want, but the bills are not going anywhere. They're going to keep piling up until you decide you've had enough.
And here's the real deal: even if you have a low income, you can still budget. T no excuses! Here are seven steps that can help you start budgeting your way to success
- The first step is to know how much money you are bringing in each month. Calculate your total income from all sources, whether it's that 9-to-5 gig, side hustles, or any other hustle you have going on. Write it down, so you can see what you're working with.
- Track your expenses this includes your bills, personal care, and frivolous spending. Time to see where all that hard-earned cash is going. Keep track of every dollar you spend for a month. Yeah, we mean every single dollar! This includes those coffee runs, late-night snacks, and those impulsive buys that hit you hard. Use a budgeting app or just whip out a pen and paper – just do whatever works for you.
- Now that you know where your money's going, it's time to tighten up your spending habits. Stop the instant gratification and feeling like you need this and need that in reality you haven’t done enough work. Quit comparing yourself to everyone else around you and those that you see online when you only did half of the work. If you’re broke it’s because of you. Now ask yourself what are you doing about it.
- Find areas to minimize expenses. Maybe skip Netflix and chill because you’re not where you want to be in life. O to cook at home and eat out less or find cheaper alternatives for your daily expenses. Get creative and make those dollars stretch!
- Prioritize, not all bills are created equal. When you're balling on a budget, it's essential to prioritize your expenses. Make sure you cover the essentials first – rent, utilities, groceries, transportation, and paying yourself first. Then, if there's anything left, you can tackle other bills or treat yourself to a little something-something. But remember, prioritize like a boss!
- Save up even if it's just a small amount, try to set aside some cash for a rainy day. Emergencies can pop up outta nowhere, and having a safety net will save you. Start with a realistic goal, like saving 5% of your income, and gradually increase it as you're able. Trust us, that peace of mind is worth it.
- Side hustle: If you're struggling to make ends meet, consider a side hustle. There are plenty of side gigs out there that can bring in some extra income. From freelance work to monetizing your strengths – explore your options and find something that fits your skills and schedule.
Be sure to implement these seven steps to budget with whatever your income is. Stay disciplined! Budgeting isn’t a one-time thing, it's a lifestyle. Stay committed and stick to your budget like glue. Keep track of your expenses, adjust as needed, and resist those temptations to splurge. Remember, it's all about making your money work for you.
So, there you have it! Budgeting on a low income doesn't have to be a struggle. With some dedication and a little bit of hustle, you can take control of your finances and start making moves toward financial freedom. Get out there and keep hustlin’ -You got this!