Ask Money

Why you should budget, even if you’re broke

Lizzie O'Leary Apr 18, 2014
HTML EMBED:
COPY
Ask Money

Why you should budget, even if you’re broke

Lizzie O'Leary Apr 18, 2014
HTML EMBED:
COPY

We often talk about the importance of creating a budget: Figuring out your monthly income, expenses, and what you want to set aside for retirement, emergencies and fun.

But if you don’t have a lot of money coming in, the whole exercise can feel overwhelming. Or worse, pointless. How do you budget, when you’re broke?

Kristin Wong, personal finance blogger, wrote a guide for broke budgeting on the website Lifehacker

First: Assess Your Financial Situation

If you have more money going out than coming in, here’s what your financial plan boils down to: spend less and/or earn more. To figure out how to do this, first take an assessment of your income and expenses. This will help you develop a reasonable and realistic budget.

Have broke budgeting tips of your own? Leave them in the comments or tweet them to @LiveMoney.

We’re here to help you navigate this changed world and economy.

Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.

In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.

Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.