One excuse for not having a budget is that you do not have enough money to bother budgeting. It can be difficult to make ends meet on any income, but especially on smaller incomes. There are many reasons that people with smaller incomes resist writing down a budget. One is that it is difficult to see how you will be able to meet your monthly obligations. Another is that your wants may be pushed aside by your needs.
It is possible to live comfortably on a small amount of money, but you may need to redefine what you consider comfortably. There are a few key factors that you should consider when you are writing a budget, especially for a smaller income. It is best if your housing does not take up more than twenty-five-percent of your income. If you live in an area where this is difficult to do, you should consider finding a better paying job, moving or both.
Another thing, which is important to consider, is you needs versus your wants. If your income is extremely small you may need to cut out things that many people take for granted in today’s world. This can include cable TV, cell phones, and vacations. You do not need to cut all of the spending, but enough so that you can save part of your income each month. You can also look for cheaper alternatives. For example instead of going to Disney World every year, you may go camping for a family vacation. You can visit your local library to rent videos instead of watching TV every night. You may choose to use cheaper phone plan or to cut out your landline to save money.
Since your income is smaller the amount you have for discretionary spending is smaller as well. You simply need to sit down and decide how much you can spend in each category each month and stick to it. This will help you to live comfortably on what you make, and will give you a greater sense of security.
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