Budgeting While Broke

Budgeting While Broke

Anyone who has every lived pay check to pay check thinking of living by a budget

is the farthest thing from your mind.

Being broke can consume you.

There is nothing worst than working all week knowing that all your money is

already spent.

There are somethings that you can do to improve your finances by budgeting

while broke.

I recently read this article that I wanted to share the ideas with you regarding budgeting while broke.

"It's likely that you don't follow a budget that reflects your earnings. Smart budgeting prevents eviction, increased credit card debt,

and ruined credit scores.

It's never too late to achieve your financial goals"

Source Yahoo Finance – Budgeting When You're Broke

There are 10 steps to budgeting while broke.

1. Avoid immediate disasters when budgeting while broke.

The article talks about calling to get payment extensions on some of your smaller bills to make sure that you pay your rent.

This would include cable, cellphone, and electric bills to free up some cash until your next paycheck.

You should also let your landlord know if you are going to be late.  They may be willing to excuse the late fee if you have been a good tenant.

2. Review credit cards payments and due dates when budgeting while broke.

There are some credit cards that charge you the late fee on the due date if your payment is not processed by a certain time.

It's important to look at all your bills when they come in the mail.

If you have them set up for e-bill make sure you read your emails.

You can set up a reminder alert to let you know when all of your bills are due.

This can save you from piling on the debt with late fees and interest.

3. Prioritizing bills when budgeting while broke.

You need to look at all your bills.

Set up payments according to your pay day.

The article makes a good point not to tell a creditor that you will pay the full amount due on your next pay check.

This can get you in real trouble.

There are other bills that you need to pay on your next pay period.

So be honest with your creditors.

Let them know you are working out a new budget to get back on track.

This way everyone is not expecting a full payment that you can't pay.

4. Ignore the 10% saving rule for now when budgeting while broke.

There is no need in having money saved if you are behind on your bills.

Once you get back on track with your new budget start saving again.

You may need to start with less than 10% when starting over from budgeting while broke.

Build your way back up to saving 10% of your income.

5. Review your past month's spending when budgeting while broke.

Knowing where you spend your money will help to know where you need to cut back  budgeting while broke.

You may have to go thorugh all of your receipts if you have paid cash to reach all your spending.

6. Negotiating credit card interest rate when budgeting while broke.

I would only call my credit card company to ask for a lower interest rate if I'm in good standing with them.

You should be current.

You should not have been late on payments the last 6-12 months.

Don't get angry if the credit card company doesn't lower your payments.

You may have to find another any to cut back when budgeting while broke.

7. Eliminating unnecessary expenses when budgeting while broke.

The article talks about cutting out eating out and changing your grocery habits if you have food that spoils.

You can also eliminate buying coffee from your local coffe shop.

I find that many clients can eliminate their gym membership that they are not using.

You can look at your cable and cellphone bill to see if you are paying for things that you aren't using to cut back on spending.

8.  Journal  new budget for one month when budgeting while broke.

Keeping track of your spending can help you find ways to cut back on expenses.

For many people it helps to see in black and white where they are spending their money to make changes.

Knowing how you spend your money will help you give an idea of the money habits that you need to make in order to budget your money.

9. Adjust spending as needed when budgeting while broke.

Previously in the article it talked about making a journal of your spending. 

As you enter the next month if your spending has not come in line with your budget you need to look at your journal to make necessary changs.

Then continue to write down all of your spending.

Leaving out even the smallest amount of money spent only hurts you in the long run.

You may need to cut out additional activites when budgeting while broke.

10. Seek new sources of income when budgeting while broke.

When your bills are more than income it may be time to seek new employment.

Whether this employment is a second job or looking for a new primary job.

Nobody wants a budget while broke.

It's necessary if you want to get your finances back on track/

When your broke you scrable to get your bills paid.

The truth is that deciding to start budgeting your money takes a mindset change.

Viewing your money in a different way is a part of budgeting while broke.

Making choices that will get you on the road to financial freedom.

Are you budgeting while broke???

Your financial coach,

Renee Lawson