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:
Itemize your current expenses. Include everything from your mortgage to your morning cup of coffee.
Cross out all non-essential expenses. Things like cable TV and extra trips to the store need to go.
Carry all the remaining expenses over to the Bare-Bones-Budget Worksheet.
Total your expenses. The resulting figure is the minimum that you need to survive and remain current on your bills.
Tips:
- For maximum effect, be honest about which expenses need to stay and which don't
- Remember to build some money into your budget for unexpected expenses; they will crop up
- Seek out free entertainment to avoid feeling deprived during your bare-bones days
