One way to instantly improve your financial situation is to look for ways to earn more money. But this doesn’t change your current financial situation.
There are just some points in life when you may be required to live on a bare bones budget. This could be from not bringing in enough income or just wanting to save or invest as much money as possible.
If you keep a positive attitude living on a bare bones budget doesn’t have to be a bad experience. It can actually serve as a learning experience and make you appreciate what you have in your life even more.
Here’s how to thrive while living on a bare bones budget.
Cut Expenses Meticulously
When it’s hard to make ends meet the last thing you want to do is take on debt to pay your living expenses. This means you’ll have to be extra careful when it comes to cutting your costs.
When you sit down to map out your budget it’s important that you list your expenses in order of priority. You need a home to live in, food to eat, and running water. Shelter, food, and utilities should always come first. You’ll also need to cover the cost of transportation to get back and forth to work. Everything else is negotiable.
If you haven’t already cut the following expenses out of your budget:
- Cigarettes & alcohol
- New clothing (unless necessary for a new job)
- Eating Out
You’re going to have to temporarily cut out all of life’s little luxuries until you can bring in more income.
After covering the basics throw what you can at any of your current debt.
Living on a bare bones budget doesn’t have to be horrible – trust me, I’ve been there before! When your living on less you’ll be forced to come up with creative ideas for entertainment and other budget categories.
Make it a challenge. Only have $50 a week to spend on food? See how far you can make that $50 go. Buy staples like flour, sugar, milk, and some spices. Be creative in your cooking.
Instead of watching TV take hikes with your kids. Color. Tell each other stories. Write a book.
Keep the Right Attitude
There are only two solutions to not having enough money to cover your bills: cut your expenses or earn more money.
And since you can only cut your expenses back so far you’re going to have to look for ways to earn more money. This gives you an opportunity to create your own side job that will bring in money and provide you enjoyment.
When you focus all of your energy on working toward making a better life for you and your family you’ll succeed. Keeping the right attitude is golden.
What tips do you have for those living on a bare bones budget?