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They don’t call it minimum wage for nothing and this is important when you think about How to Live on a Budget.
How’s a guy supposed to get ahead, breaking his back 24-7, when all it gets you is chicken scratch?
My friend, you need a budget.
To complete this How-To you will need:
Ability to add, subtract, multiply, and divide
Bank or credit union
How to Live on a Budget Step 1: Add up income
Add up all your income.
How to Live on a Budget Step 2: Divide by months it took to earn
Divide the total by the number of months it took you to earn it. The result is your monthly income.
How to Live on a Budget Step 3: Add up monthly expenses
Add up your essential monthly expenses, like food, rent, transportation, and personal necessities.
How to Live on a Budget Step 4: Add up nonessential spending
Next add up your nonessential monthly spending.
How to Live on a Budget Step 5: Add up expenses
Now add up your expenses, and pray the total is lower than your monthly income. If your expenses exceed your income, you’ll need to cut back on nonessential items.
How to Live on a Budget Step 6: Stick to numbers
Once your numbers are set, stick to them! Discipline is the key to living on a budget.
Tip: Try to set aside a small portion of your income on a regular basis—make sure to deposit it in a secure savings institution.
How to Live on a Budget Step 7: Take public transportation or carpool
Take public transportation, or carpool with friends to save on gas. Walking is free, and it’s great exercise!
How to Live on a Budget Step 8: Be frugal
Be frugal. Stop buying brand name clothes and fancy foods. Stop drinking lattes. Don’t order takeout.
Tip: Instead of buying napkins, wipe your mouth on your sleeve.
How to Live on a Budget Step 9: Buy secondhand
Buy anything you can secondhand. Thrift stores often sell household goods and perfectly good used clothing.
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Duration : 0:2:27