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  • Writer's pictureSheneri

3 Simple Ways to Budget: A Guide for Minimum Earners


budget money in simple ways

Budgeting is an essential part of life, but it can be especially challenging for those who are earning minimum wage. I bet you agree. With that being said, today I'll be sharing a simple ways to budget and easy-to-follow steps to help minimum-wage earners like you create a budget that works. It covers topics such as budgeting methods, money mindset, and sticking to your budget.


Even the most inexperienced budgeter can learn how to manage finances to save money and reach financial goals.


Without further ado, let's dig in!



1. Choose among Simple Ways to Budget (Methods).


There are a lot of simple ways to budget your money. One of them is to use a budgeting method that can be applied to your situation. A budgeting method will serve as your guide to effectively budget your money. Consider your current financial situation and make sure the method matches what you already do.


Some of the budgeting methods are as follows.


  • 50/30/20 Budget Method


In this method, you break down your expenses into 50% essentials (bills, utilities, rent, or other mandatory expenses), 30% discretionary expenses (travel, dining, or other voluntary expenses), and 20% financial goals like savings and investments.


50/30/20 budget method

This is good for you if you despise budgeting and fear you won't have a life if you'll do it. You can easily adopt this straightforward approach into your daily life and will undoubtedly help you get back on track with your budgeting.


  • Zero-Based Budget Method


It's a straightforward method where all your expenses are covered by your income and lets you account for every peso. Your income should be equal to zero after deducting all of your costs, including savings. Moreover, it's a budgeting method that encourages you to cut back on unnecessary expenditures.


Income- (Savings + Debt + Exp)= P0.00


Here's a quick process of using a zero-based budget.

a. Record all your monthly income (salary or side hustle).

b. Record all your monthly expenses (essentials or non-essentials).

c. Deduct your all income to your expenses which will result in zero as this budget method is named.


  • Cash Envelope Budget Method


The most crucial step in budgeting is dividing your money across various funds for specific goals. In this manner, you can access money from a specific fund when you need it without compromising the goals of your other funds. It's called cash envelope budgeting.


For instance, you will allocate a certain percentage of an emergency fund, travel fund, or educational fund. Thus, in times of need when you decide to travel, you'll just use the fund allocated for it without the need to use the others. Simple as that, you're budgeting for a specific purpose.



2. Adjust your Money Mindset.


People's everyday routines and upbringing affect how they view money. Your attitude towards money will therefore inform how you allocate your minimum income so that it will be sufficient to meet all of your needs. To effectively budget income, you must use your actions to influence your beliefs. Thus, money mindset is considered as one of the simple ways to budget a minimum salary or income.


People with a positive outlook on money hold the following beliefs:

a. Although I have the choice to spend money, I can also refuse to make a transaction.

b. I enjoy liberally contributing to those who are in need.

c. I don't have to assess myself against others.

d. I can reach my financial objectives.


How you feel about those who make more or less money than you, how readily you donate, how confidently you can invest, and other things are all influenced by your money mindset. Therefore, guard your mindset on money.



3. Stick To Your Budgeting Plan.


Budgeting is encouraged. As mentioned earlier everyone needs a budget because no one wants to be in debt. The challenge is to stick within your budget. Are you confident to refuse temptations like mega sales, payday sales, and other sales out there? How could you stick to your budget?


Living within your means is possible even if you're just earning a minimum income. If you stick to your budget, you can accomplish your goals and live the life you desire. Additionally, it will change the way you perceive budgeting—from a burden to a lifestyle that you'll enjoy.


Here's how to stay within your spending limit.

a. Review your budget before making a purchase.

b. When required, adjust your bill payment to stay within your budget.

c. Before you head to the store, make a list of your groceries.

d. When buying something, consider brands along with the price.


simply staying within your budget


Final Thoughts on Simple Ways to Budget


There you have it, your simple ways to budget even if you're a minimum wage earner. Know that living within your budget lets you enjoy using your financial resources. So, be responsible enough to track your spending.



Hope you learn from the guides or tips mentioned above and apply them to your budgeting.

Feel free to suggest a topic or anything you'd like to know, say it in the comment section.


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Guest
Apr 19, 2023
Rated 5 out of 5 stars.

Well explained tips =)

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Sheneri
Sheneri
Apr 28, 2023
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Hello, thank you that you're able to understand. Feel free to share this blog to your friends too :)

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