Budgeting When You're Broke: How to Start Managing Money with Almost Nothing
Let’s be honest—budgeting sounds like a luxury when you’re broke. If you’ve ever looked at your bank balance, laughed, and thought, “Budget what, exactly?”—you’re not alone.
But here’s the catch: budgeting isn’t just for people with extra money.
It’s a survival skill when you don’t have much.
In fact, when your money is tight, having a clear plan can mean the difference between scraping by and slowly building stability.
Why Budgeting Matters When You’re Barely Getting By
When you don’t have much, every dollar has weight. It’s easy to let things slip when you’re overwhelmed—like forgetting a small subscription that overdrafts your account, or buying lunch out just to save time.
Without a plan, small expenses start to snowball. Budgeting gives you a way to regain control, even if the numbers feel discouraging at first.
Step One: Face the Numbers (Even If It’s Uncomfortable)
The first step is facing your current reality. It might not be pretty, but you need clarity.
Write down:
-
How much you actually bring in each month (after taxes)
-
What absolutely needs to be paid (rent, food, utilities, debt minimums)
-
What’s leftover, if anything
Even if the result is negative or close to zero, it’s better to know than to guess.
Real-life example:
When I was in college, I made about £700 a month from part-time jobs. My rent was £400. After food and my bus pass, I had barely £50 left for everything else. I didn’t track it, so it disappeared fast. Once I started budgeting—just using my notes app—I found small ways to stretch it further.
Step Two: Sort Expenses into “Musts” and “Maybes”
Separate needs from wants. Be ruthless.
Musts: rent, groceries, transport to work, minimum loan or debt payments, phone
Maybes: streaming services, takeout, clothes, entertainment
This doesn’t mean you can never enjoy anything. But when you’re broke, your money has to cover survival first.
Budgeting doesn’t kill fun—it just puts it on hold until you can afford it.
Step Three: Build a Bare-Bones Budget
A bare-bones budget is exactly what it sounds like: the stripped-down version of your life. You focus on keeping your essentials running and cut or reduce everything else.
For example, your month might look like this:
-
Rent: £400
-
Food: £150
-
Utilities: £80
-
Transport: £60
-
Phone: £20
-
Debt minimums: £50
-
Total: £760
If your income is £800, that leaves just £40. Not much—but it’s something to work with.
Step Four: Track Every Pound (Yes, Every Pound)
When you’re low on money, tracking your spending is your best defense. It helps you spot leaks—like that £2.99 subscription you forgot about or impulse snacks that add up to £40 a month.
You can use apps, but even writing it down in your phone notes or a notebook works.
It might feel tedious, but tracking spending is the fastest way to get better at managing it.
Step Five: Find Small, Realistic Wins
This isn’t about changing your whole life overnight. Start with wins you can achieve right now.
Try:
-
Cancelling unused subscriptions
-
Cooking meals in bulk (think: chili, pasta, soups)
-
Walking or biking instead of taking transport
-
Asking your internet provider for a discount or switching to a cheaper plan
-
Selling stuff you don’t use (old tech, clothes, etc.)
Real-life example:
A friend of mine saved over £120 a year by switching her car insurance provider and ditching two forgotten streaming services. That’s £10/month back in her budget—no extra work.
Step Six: Save Just a Little—Even If It’s £5
This might sound impossible, but even saving a tiny bit is better than saving nothing.
That £5 or £10 tucked away gives you breathing room next time your tire pops, your phone cable dies, or you need laundry detergent before payday.
Small buffers turn emergencies into minor inconveniences.
Step Seven: Focus on Weekly Goals, Not Perfect Budgets
Long-term goals feel out of reach when you're broke. So start small.
Set one-week or two-week goals, like:
-
No takeaway coffee this week
-
Track spending every day
-
Put £5 into savings
-
Sell one item from home
-
Use public transport instead of Uber
These quick wins add up. And they build momentum without feeling overwhelming.
Final Thoughts: You’re Not Bad With Money — You’re Just Starting Where You Are
Being broke doesn’t mean you’ve failed. It doesn’t mean budgeting is pointless. It means you’re navigating a hard situation and trying to get through it smarter.
Budgeting when you have almost nothing is hard—but it is possible.
You don’t need to be perfect. You just need to start.
Even if it’s messy. Even if it’s slow.
Especially then.
Disclaimer:
This content is for informational purposes only and
should not be considered financial or investment advice. Always do your own
research or consult with a licensed financial advisor before making any
investment decisions.
Comments
Post a Comment