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How To Create a Bare-Bones Budget

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Need to do something drastic to get your finances back on track? Then, try a bare-bones budget. It'll take your spending down to the bare-essentials, and get your bank account built back up in a hurry. Here's how to create yours:

Difficulty: Easy

Time Required: 1-2 hours

Here's How:

  1. Itemize your current expenses. Include everything from your mortgage to your morning cup of coffee.

  2. Cross out all non-essential expenses. Things like cable TV and extra trips to the store need to go.

  3. Carry all the remaining expenses over to the Bare-Bones-Budget Worksheet.

  4. Total your expenses. The resulting figure is the minimum that you need to survive and remain current on your bills.

Tips:

  1. For maximum effect, be honest about which expenses need to stay and which don't
  2. Remember to build some money into your budget for unexpected expenses; they will crop up
  3. Seek out free entertainment to avoid feeling deprived during your bare-bones days
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