What Is a Bare-Bones Budget?
A bare-bones budget is a budget that takes your spending down to the minimum required to survive and fulfill your financial obligations. It’ll get you through a rough patch, but it won’t leave you with a lot of extras in the meantime.
What a Bare-Bones Budget Includes
HousingUtilitiesGas: Only enough to get you to work and other necessary locationsDebt repayments: No more than the required minimumsFood: Essential grocery items onlyPhone: A basic landlineInsurance payments: Health, auto, life, and disability premiumsEssential family expenses: Daycare, school tuition, alimony, child supportPersonal care: Prescription medications, toiletries, work clothes, haircuts (as needed to look presentable for work)
What a Bare-Bones Budget Does Not Include
Entertainment spending: Magazine or movie rental subscriptions, concerts, trips to the movie theater, etc.Cable/Satellite TVClothing: Anything beyond what is essentialCell phones and landline extras: Unless a cell phone is vital to your job or safetyRestaurant mealsGas for non-essential tripsVacationsHobby spending: After-school activities, gym memberships, hobbies, etc.Non-essential personal care: Cosmetics, manicures, massages and extra hair services (color, highlights, perms, etc.)
Does a bare-bones budget sound like what you need to get caught up? Then, start planning yours now.
