Why Do You Need a Budget, Even If You’re Broke
A friend of mine is a career consultant. During sessions, she inevitably asks clients: Do you have a budget? The usual answer is no, because I have little money. The good news is, you don’t have to be rich to have a budget.
Going broke does make budgeting more difficult, but budgeting is simply a plan for how to spend your income each month, even if that income is meager. Call it a spending plan, call it money management. Whatever the name may be, the goal is the same: to divide your monthly income into different categories of expenses, from bills to food to paying off debt.
When you do little work, these categories will be subtle, yes. But making a plan gives you control, and when it comes to personal finances, control is everything .
If you don’t have a budget, you can start with our tutorial on how to budget in case of ruin or how to budget in general .