Living On Extreme Budget : Basic Rules And 10 Ways To Survive And Save On A Tight Budget
If you’re like most people, you probably think that living on an extreme budget is impossible. After all, how can you possibly save money when you’re already struggling to make ends meet? The truth is, it is possible to live on an extreme budget – you just need to be willing to make some sacrifices.
Two Basic Rules of Budgeting:
50 30 20 Rule
The rule is based on the percentage of your income that should be spent on each category:
- 50% for necessities like housing, food, transportation, and utilities
- 30% for discretionary items like entertainment, travel, and clothing
- 20% for savings and debt repayment.
The key to making the 50/30/20 rule work is to be mindful of your spending in each category.
Start by evaluating your current spending habits and see where you can cut back in order to meet the targets for each category.
If you find that you’re unable to stick strictly to the percentages, don’t worry too much. Just try to be better at it by thinking everything through. For example, if you are exceeding the budget in clothing or shoes, think about alternative ways. Shop in second hand stores for some time, look up level shoes discount code or try to shop during the off season. Keep in mind that you make financial decisions and adjust accordingly over time.
70 20 10 Rule
The 70/20/10 rule is a simple way to keep your finances in order. It states that you should-
- save 70% of your income,
- spend 20% on living expenses, and
- 10% on fun or investment.
This rule can help you stay out of debt and build up your savings. If you follow the 70/20/10 rule, you will have a solid financial foundation. You will be able to afford your basic needs, have some money left over for fun or investments, and most importantly, you will be saving for the future. This rule is a great starting point for anyone who wants to get their finances in order.
There are many different ways to budget your money, but the 70/20/10 rule is a good place to start. It can help you stay out of debt and build up your savings. Give it a try and see how it works for you!
10 tips about living on a tight budget: Here are a few tips for living on an extreme budget:
- Make a budget and stick to it. This will help you stay on track with your spending and ensure that you’re not overspending in any one area.
- Cut out unnecessary expenses. Take a look at your spending habits and see where you can cut back.Do you really need that morning coffee every day? Can you pack your lunch instead of buying it? There are many small changes you can make that will save you big bucks in the long run.
- Sit down and figure out exactly where your money is going each month. Once you know where your money is going, you can start making adjustments to ensure that you’re spending within your means.
- Shop around for the best deals. When it comes to necessities like groceries and healthcare, don’t be afraid to shop around for the best prices. You may have to put in a little extra effort, but it will be worth it in the end.
- Live below your means. This means spending less than what you earn each month. It may require making some sacrifices, but living below your means will help you stretch your budget further.
- Get creative with your income streams. If your regular paycheck isn’t enough to cover all of your expenses, get creative with ways to bring in extra money. You could start freelancing or pick up odd jobs here and there. Every little bit helps!
- Find ways to save money on groceries and other essentials. This may mean couponing, shopping at discount stores, or cooking at home more often.
- Consider getting a part-time job or finding other sources of income to help supplement your income and stretch your budget further.
- Try to use coupons or codes and be informed about sales. There are a lot of codes and coupons like h&m promo codes you can find online that will help you get better deals.
- Finally, be mindful of your spending and don’t allow yourself to get into debt unnecessarily.
