Oh my God … I can’t budget because I don’t have enough

One of the most common things I hear people say is that they cannot budget because they are too poor or they don’t have enough. To them, the numbers never add up and the balance is always in red no matter how much they cut back. In situations like this, it can be frightening and extremely frustrating to try budgeting because it looks like there is no way things can work out. On the contrary, budgeting and keeping track of your finances at such times is the wisest and smartest thing to do. Budgeting can help you fix so many financial troubles. Below are some wonders budgeting will do for you regardless of how broke you are:
• Prioritizes Your Spending
A budget can help you prioritize your spending when it seems like you don’t have enough money to cover all your expenses. It helps put a stop to unending financial insufficiency. But you need to know what your major priorities are and that should start with a roof over your head, and food to eat. Then basic utilities, like water and electricity. Transportation to your place of work should be your next priority, depending on where you live; this may mean a car, or a bus pass or a bike. If things are really tight, you should try to limit the frequency of your car usage and try alternative means.

• Spots Where to Cut Back on
A budget can also show you areas where you really can cut back on. If you write down everything you spend, you may be surprised at where and how some of your costs are adding up each day. Although you may think you are spending money only on necessities, but you may be surprised by how much the little expenses here and there do really count and are adding up. Budgeting also gives you a clear idea on the difference between your needs and wants and how much money you are wasting on your wants (desire).
• Identifies Where You Need to Change
By default, your budget can simply show you how you need to change your current situation and improve your financial state. For example, it could give you an idea of the amount to ask when you consider taking a second job or looking for a new job or asking for a raise. If you specifically know how much you have to bring home each month to make ends meet, you can determine the best course of action. It also reveals how much you need to create in passive income.
• Gives You a Spending Plan
A budget is really a spending plan. It gives your money direction. A budget is like a spending navigator in the atmosphere of lack. When money is super tight, it is important to have a solid plan in place. If you feel like your income is supposed to make ends meet, but things do not add up on paper, a budget can be a tool with which a financial expert looks over your expenses and offers suggestions on things you can cut back. They cannot make real suggestions if they do not have an idea of how you really spend your money.
Key Note: Don’t Stay in This Situation
If you are living below poverty level, it means you are probably struggling to cover your most basic expenses with no extras at all. It can be very frustrating because you may be working very hard and yet “ends” never seem to “meet”. When you are in this situation, you need to look at every expense that you have and make sure it is as low as possible. Instead of renting an expensive apartment just to impress, consider having a roommate, sell your current car, and use cash to buy an older car that will get you around. Living frugally in this situation is not optional, and it may take you several years after you improve your income situation to fully recover from being this poor. If you can limit the amount you borrow and avoid living on credit purchase at all cost, you will be better off once you begin to make more money. Even though you are struggling, you can still be happy when you are broke.


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