How do you make a budget on very little paycheck, and live happy with nothing?

Question

I earn a very small paycheck and work very hard all week long and even pull overtime when I can. The problem is I have rent, car, insurance, and utilities. Sometimes, if it wasnt for my mother, I wouldn't eat. I have tried budgetting, but something always happens and pushes me right back to where i began. How do I overcome this?

Answer 1

You need some help. Let's try to figure this out. First, I want you to go to the link provided below called "Provident Living". It will go through five lessons with you.

Your problem is that you are living beyond your means. You know (and I recognize) that you aren't living wildly. You are living beyond your ability to handle it. Part of the issue is that you have no flexibility in your budget--and any little thing will put you "over the edge." That is an untenable position, and is demonstrated by the fact that you are still needing a subsidy from a loving mother.
Perhaps your rent is too high, or your car payment. (Cars require insurance, gas, property taxes, repairs, maintanence, etc., and are the major "budget buster" in most American households.) You may not like this, but it is possible that you can't afford a car.
Most young people then respond with "well, how would I get to work without a car?" Walk. Take a bus. Move closer to work so that either of those is possible, etc.
You have to take control of this situation, because right now--as is--it isn't going to work.
Next, you are going to have to put an "emergencies" piece into your budget. That means you need to establish a regular savings program.
Once you start living within your means (whatever those means are) you'll find that life is much less stressful, much less difficult, and you WILL BE HAPPIER!
Again, I admonish you to go to the link below, and start learning how to live with less.
Without knowing you at all, I'd say that it will start with getting rid of the car. Sorry, but it appears you can't afford it--even though it seems that you almost could. You ALMOST can.
In time, when you've saved up more money, you'll be able to get another car.
Get out of debt (and that's the car) and stay out.

Answer 2

I went to Staples and got a budget book to write every single expenditure. A little A/R....but now I use Quicken to track my expenses on my laptop. Once you see where the money goes, it is easier to make adjustments.

You can't live happily with nothing...unless you have very low expectations. Obviously this is not the case. You need a better paying job, a second job, more overtime, roommate, or even spouse to live comfortably.

Your rent is non-negotiable, but you could look for a cheaper place next year, car payments are locked up for 4-5 years so this would require a refi, insurance may be negotiated with a higher deductible and utilities may be bundled to save money.

Answer 3

Get married and/or get a roommate.
Seriously, start out by being thankful for what you have. Being happy with nothing is very Buddhist, but you wouldn't have all these payments if you really had nothing. Homeless people and monks don't have to pay rent, car, insurance, or utilities.
First, determine where each dollar is going, my husband calculated what he was spending on lunch, drinks, snacks and candy bars and was shocked to discover almost $70.00 a week he was throwing away. He started carrying his lunch and buying fruit for snack and drinking water. It wasn't free but saved a lot. Track every dollar for a week and by the month, even if you buy a pack of gum. It's hard but it will pay off!
Eating out is a big black hole in many budgets. See if you can't cook more cheaply and maybe mom or others in your family would be willing to cook once a week in return for a visit. If things are really bad then maybe you qualify for government assistance like food stamps?
Maybe you could move to a cheaper place until your finances are better? Or maybe get a cheaper car? Compare prices on insurance, for sure.
Utilities may be lowered by being more green, lots of info on the internet and it will be good for the environment too.
Study ways to save money, lots on the internet. Also, good books. I have a story here, our librarian said her daughter told her "I'm going to save more money, so I bought a book on it!" The librarian answered, "You already made your first mistake! Why didn't you go to the LIBRARY?!" The public library will have books of money saving tips.
There's more, but I will leave you with these thoughts: "The stuff you own ends up OWNING you." You gotta pay for it, take care of it, and store it, plus protect it from being stolen!
And we have a saying: "Make it last, wear it out, make it do or do without." That sums it up pretty well!

Answer 4

Start by keeping track for a month where every penny goes. At the end of that month, add it all up and see what you are spending more than you realize on that can be cut down or eliminated. When you grocery shop, pass by the name brands and go for store brands. Most people don't realize that many store brands are manufactured in the same facilities as the name brands. After you cut down on unnecessary expenses, save a little bit from each paycheck. Don't splurge on anything until you have at least two months pay saved up. After that, it is very good to keep saving as much as you can, but you can ease off a little and spend a little extra on yourself at that point.

Answer 5

My father-in-law has two sayings that I'd like to share with you:
1) A fool and his money will soon part
2) It's not how much you make, it's how much you save

I can't recommend sticking to a budget, because I never have. However, there are lots of ways to save money. Mostly it's a state of mind. Every day and every purchase you have to fight for every dollar earned. Here are some suggestions:

Cancel your cable service - Use an antenna for watching TV. If you get bad reception, read a book, talk to your roomates, etc. I promise at the end of your life you won't be saying, "I wish I watched more cable TV".

Cancel Netflix, Blockbuster, etc., and borrow movies from the library instead - Public libraries have large DVD and VHS selections any many lend them free of charge or for a minimal fee.

Pack your lunch - Never go out to eat at work (unless your boss is covering the tab). I pack a lunch every day and save a ton of cash. If a friend wants me to go out with them, I bring my lunch to the restaurant.

Don't go out to eat (except on rare, very special occasions) - Dining in is cheaper, healthier, and you don't have to worry about restaurant workers spitting in your food.

Don't exchange gifts at Christmas, Valentines, Father's Day, etc. - It's ridiculous how much Americans spend on these "Holidays". Instead offer your time (i.e., help your dad with yard work, watch your friend's kids for a night, etc.).

Manage your debt - Don't carry a balance on your credit cards, and (if possible) pay cash for your car. Too many people in your situation pay too much money to banks for the privilege of paying for stuff. If you have to borrow money to buy a car, you need to find a cheaper car you can afford with savings.

If you do use credit cards, pay them off every month, and use cards that offer cash back - I've earned thousands of dollars over the years by doing this. Several cards pay 1% back on all purchases, some pay 3-5% for gas, groceries, and pharmacy purchases.

Take public transportation/carpool - This will save you money and wear-and-tear on your car.

Shop around for lower-cost insurance - Do this at least once a year; the time you spend researching a lower rate will be well worth it.

Look for bargains on eBay - I purchase razor blades on ebay at about 70% cheaper than at the big box stores.

Get paid more for your job - Ask for a raise (do your homework ahead of time and be prepared to justify your increase). If you can't get a raise, get a job that pays more.

Answer 6

My husband and I share a checking account and pay all of our bills from it. If only one of us was working, it would be an endless struggle to make ends meet. Consider finding a roommate. If you are really making so little money, consider looking for a better paying job or even a second job. A cheaper appartment may also be an option. Take your lunch with you to work as often as possible (that really cuts costs). Eliminate any unneccesary expenses (cigarettes, magazines, movie club subscriptions etc). Try to build a cushion for yourself so that when unexpected expenses do arise, you aren't using your grocery money.

Answer 7

well dont give up, you are learning very valuable lessons that some people wont learn their whole life. You can live happy with "nothing" if you appreciate what you do have which is much more than nothing, you have your family, job, friends, vehicle, roof over your head, the ability to go to the park and enjoy a beautiful day (free!). Your life will turn around, and when it does you will have a better understanding of things and be more appreciative of things than people who are just handed what ever they need!

Answer 8

Live as frugally as you can. Before you make every expenditure, ask yourself "Do I REALLY need this ?" Watch your utilities. Don't use electricity where not needed. It's amazing what you can do if you try.

Back early on in our marriage (ancient history), I was working a mediocre job, my wife was still in school, and we were footing the bills for her tuition. By scrounging, we not only got by, but managed to put aside enough in one year to take a ten day driving vacation with good friends to New Orleans.

Trust me, we were VERY creative.

Answer 9

This is the eternal question. However, the only method that I am aware of is eliminate all luxury. The downside is, when you want to enjoy a meal out, see a movie, or even replace your old car -what do you do?

You probably have more talent then you have come to understand. Finding a new career might be in your future.

Answer 10

Increase your income. Miracles happen, but the laws of matter prevail. you can't make something from nothing. See if your job provides any free training or tuition reimbursement. Make yourself a more valuable and save everything you can. Pay yourself first, no matter what you make, determine some percentage of money that will be saved.