7 Budgeting Methods to follow when You’re Broke

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The outfit you’ve been eyeing is finally on sale but it’s the end of the month? Yeah, we all have been there. But don’t worry, with a little bit of organization and few saving tricks, the end of the month wouldn’t look so scary.

Let’s get the first thing first, budgeting is not staying up late and racking your brain with bills, drowning yourself in coffee, and nearly pulling your hair out. It’s all about the simple rule of balance between your expenses and income. Things start going downhill from the moment your income becomes insufficient for all your expenses. 

For this, you need to assess your finances. To start with any budgeting method, you need to start with a realistic and reasonable analysis of your earnings. Here are 7 budgeting methods that can pull you out from financial disasters. 

1. Categorize your Expenses

Try to divide all your expenses into categories. Make a list of luxuries and necessities. This will help to prioritize your finances. Although writing this all down might seem like a gruesome task, but we can assure you it’s worth your time. Once you get started it becomes a lot easier. 

After you’ve got your spending cleared up, look for those little black holes of expenses. The pricey cups of coffee, stores that have become your second home—such habits can be cut down. 

Keep an eye on expenses you can totally manage without. If you have the habit that’s taking a heavy toll on your wallet, re-evaluate them. After all, budgeting methods depend a lot on self-control.

2. Second-Guessing

Before you buy anything ask yourself, “Do I really need this or am I just being manipulated by marketing techniques?”. For instance, “Do I really need this new pair of Nike because I already have a nice pair of running shoes?” 

Often we are made to believe that we need something for it to turn out to be useless. Allow yourself a breezy vacation once in a while but try to be flexible with the frequency. 

Pampering yourself is not always about spending money after all. Going through your bills one by one and eliminating the ones that might be unimportant is another effective budgeting method.

3. Being a Little Stingy Never Hurts

Adopting a more economical approach will help in the long run. One of the simplest ways to save a lot of money is to tackle your maintenance by yourself. It will not only save your money but also give you the feeling of accomplishment. 

Another way of doing this could be getting a house with cheaper rent. Rent amounts to a major part of our paychecks. 

Cutting back on that could be a big bonus for you. Overall, our advice would be to try to live a minimalistic lifestyle. A minimalist lifestyle can improve your overall quality of life. 

4. Security or Loan-Free

The old debate of saving vs debt plays a major role in budgeting methods. Should we be paying off our loans or put that money aside for saving? 

The best way to tackle this is to work in your situation. However, financial experts advise saving some money in case of any emergency. 

If you don’t, then the only option you’ve got is to borrow more money which will keep on accumulating with time. An emergency fund has turned out to be an invaluable aid in stressful situations. 

5. Know Your Interest Rate

Before applying for any card, always check the interest rate. In this way, you can predict your earning and keep a record of them. Not just that, many credit card companies do listen to their consumer about lowering interest rates. 

Other than that, when you have a lot of loans, it will be a lot tougher for you to set a budget. That’s why you need to deal with your debt. 

There are two approaches you can use to reduce your debt. You should use the snowball debt form, which is where you first pay off the smallest debt. You may also use the debt avalanche process, which is where the highest interest rate debt is paid off afterward.

6. Avoid these Mistakes

You can make a ton of positive choices along the way, but if you make a few poor decisions, you’re going to set yourself back and make life so much worse for yourself. 

Any of the hardest things to do when you’re broke and struggling to build a budget to save money includes: splashing when you get money, prioritizing comfort, getting too much debt or making terrible choices on how to cope with the debt, spending outside your means, and finding no savings at all in the event of an emergency. 

Don’t get stuck making these mistakes because it can be hard to come out of them. Out of many budgeting methods, this one is crucial.

7. Discover more Opportunities

Part of handling money while you’re broke is trying to increase your income. For eg, find a better job, ask for a raise in your current job, sell the things you’re not using and find a side hustle. 

These solutions are not open to all. But in the end, it’s about being resourceful. Seek ways to make more money and save more. Then take advantage of those openings. Often they can look more like sacrifices but that’s what makes us stronger.

If you’re fed up with the lack of funds, keep this in mind—all of the greatest success stories start with its main character being broke. Start with a plan. Set some minor benchmarks. Take advantage of resources. Overall, this is going to help you gain control. Once you do it, you might be surprised to grasp how far you’ve come. 


Setting or following a new budgeting method is not an easy task—you will need to be strict about it. It takes tough decisions and disciplines to keep going. 

However, during the time of insufficient funds, sticking to a minimum expenditure can save you from falling into a deeper abyss. 

Follow these 7 budgeting methods for money management and it can create an everlasting difference in your life—from more debts to financial stability. 

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