Stop Spending Money You Don't Have! Budgeting 101 for the Broke
January 19, 2021 | Peyton Sawyer
Are you a budgeter? If not, then you should become one ASAP. The truth of the matter is that budgeting is the only way to track all your income and spending, so that you know where your money is going and how to stop overspending.
If you’re living paycheck to paycheck, struggling to cover your day-to-day bills, then you not only need to learn what to prioritize in your budget, but what to stop spending money on.
Here are our tips on how to get your budget going.
Use Idaho Car Title Loans
What are title loan benefits?
Title loans are quick and easy to acquire. The lenders work with all kinds of incomes and you can qualify even if your credit is bad or nonexistent altogether.
How do I find title loans near me?
You can easily apply for title loans online by going to IdahoTitleLoansInc.com and filling out the request form. A store representative will contact you and set up a meeting.
You’ll need to take your car for inspection, as well as provide them with your valid ID (to prove you’re over 18), and the car’s title in your name (it should be completely lien-free).
If you’re approved, you’ll get the cash the same day.
So, what have you learned? Budgeting is a key factor in being financially healthy, especially if you are living from one paycheck to another. If you need a little extra help handling a financial emergency that you cannot afford, a title loan can help get you back on track.
Budgeting Tips to Spend Less Money
1. Take a Good Look at Your Bank Statements
If you’re having trouble covering all your expenses month to month, you need to look at your bank statement and identify which category is “eating” the most money. Of course, you aren’t likely to be able to cut down what you spend on your rent or utilities (though if you’re hard-pressed, you can find some instructions for the latter on the internet); but things like groceries, shopping, Uber, etc. are far easier to get under control.
2. Cut Out the Things You Don’t Need
How many subscription services are you signed up for? How many premium apps are you signed up for – even if you could use free versions? Are you still watching cable? How often do you buy coffee at Starbucks?
If there are things in your expenses, you could live without – then they need to go. Or, at the very least, you need to seriously cut down on them (did you know that just cutting cable could save you over $100 each month? Substitute it with Netflix – and watch a game at a friends).
3. Try to Stay Under Budget for Each Line of Expense
There are, of course, expenses you won’t be able to cut – like clothes or groceries. Look closely at the amount of money you’re left with after you’ve covered things that are the priority (rent, utilities, emergencies – more on that below) and allocate the amount you’re comfortable with for each expense.
Now, that’s just the first step. The second – and the main one – is to learn to stay under the budget for each of those expenses. For example, if you’ve allocated $200 for groceries for the month, try to spend $170 instead of the entire budget.
This doesn’t mean you should skip buying things you need – it means you shouldn’t spend money on things you don’t for no other reason than you can.
4. Leave Some Wiggle Room for Spending
…but it also doesn’t mean you should strip your budget bear.
Look, it’s better to over-budget and allocate a bit more money for your expenses than to under-budget. Under-budgeting means you’ll bust your budget one way or another, and if there’s an effective way to deter someone from budgeting it’s letting them continuously bust their budget.
Sure, if you can continuously stick to $170 or less on groceries, you can think about cutting down the budget, but having a few extra dollars can ensure you stick to your budget even if you give in to your temptations – and sticking to the budget is a great motivation to continue!
Plus, having that extra money can even help save money down the line – for example, you can stock your pantry or freezer by buying extra things when there’s a sale going on.
5. Prioritize Saving for Emergencies
The first thing you should do (after covering the rent and utility bills), is put money into your savings. And before you start saving for more long-term goals (like retirement), you should take care of your emergency fund – the money that is specifically for dealing with financial emergencies like car breakdowns, plumbers, locksmiths, etc.
A financial emergency will be the main budget-buster if you don’t have cash on hand to deal with them, so the emergency fund will be what ensures your financial stability.
What do I do if I don’t have an emergency fund?
If you need to get money elsewhere quickly, you might want to think about taking out a short-term fast loan. For car owners, a title loan would be an optimal choice.