When you face a financial hardship, overcoming it will require you to learn how to adapt to the situation. Adjusting your expenses in order to save as much money as you can is not easy but it’s doable.
What is a bare bones budget?
A bare bones budget requires a household to cut down any unnecessary expense only to spend money on the bare necessities such as the following:
- Debt repayment
- Other household expenses (tuition, clothing, toiletries, etc.)
A bare bones budget doesn’t include anything more than what you need, for example, cable TV, name-brand clothing, eating out, expensive hobbies or vices, vacations, and such.
Making a bare bones budget
Create a bare bones budget by following these instructions:
- List down all your expenses for a month including the smallest expenditure.
- Eliminate the non-essentials. Assess which items on the list you can really live without and have it removed from the list.
- There are some things you don’t exactly need but since you have gotten used to having them in your life, it’s difficult to remove them and you may now consider them a necessity. It’s difficult but you have to remove these things at least for a short while if you want to achieve your financial goal. Also, consider the cost of unexpected expenses like repairs and emergencies.
- Once the remaining items on the list of your expenses are only the important things you need to survive, get the total and create a monthly budget around the total basic expenses you’ve come up with.
Whatever your financial goal may be, a bare bones budget can surely help you achieve it faster. You might even end up enjoying the simplicity of minimal living; after all, it will help you save more money.