Yusra3
VIP Contributor
Creating a bare bones budget is simple. You just have to know what you need and how much you have to spend, before you can create your budget. This is an easy process, but it is often overlooked by people who are new to budgeting. We'll show you how to create a bare bones budget in four easy steps:
Step 1: Write down everything you want and need, as well as all of your monthly expenses. You should include everything from rent or mortgage payments, utility bills and food costs to entertainment and clothing expenses. Don't forget about any other monthly expenses such as car insurance or child care.
Step 2: Look over this list and find out what percentage of your income goes towards each item on the list. If a certain item costs 50% of your total income, then that's what we'll call it for our calculations later on down the road (we're not being too mathematical here).
Step 3: Write down how much money you have left over at the end of each month after paying for all of these things; this will be our bare minimum spending amount per month (we call it "BMM").
Step 1: Write down everything you want and need, as well as all of your monthly expenses. You should include everything from rent or mortgage payments, utility bills and food costs to entertainment and clothing expenses. Don't forget about any other monthly expenses such as car insurance or child care.
Step 2: Look over this list and find out what percentage of your income goes towards each item on the list. If a certain item costs 50% of your total income, then that's what we'll call it for our calculations later on down the road (we're not being too mathematical here).
Step 3: Write down how much money you have left over at the end of each month after paying for all of these things; this will be our bare minimum spending amount per month (we call it "BMM").
