THE BARE - BONES BUDGET.

Hey, 😊 How are you doing?

 Before I even start with the blog, I have some exciting news. I am finally, for the first time in my life, debt free. I lack the right words to express my joy. I don't even know what to compare the happiness that I'm feeling right now to. It's been quite a journey, and not an easy one for that case, but I finally finished the race.

Today, I will be sharing with you the tactic I used to get to where I am currently and that is being debt free. I'm still on my journey to financial freedom, I haven't arrived yet 😁 but I'm glad that I've already passed the first destination, and that is debt clearance. I want the same for you and I believe if you follow through with the strategy I'm about to share with you, you'll make it. 

 

Bare - bones Budget. 

You are probably wondering why bare-bones budget is in bold, underlined and in a different color, right? That's because it is the secret ingredient of today's discussion.

What is a bare-bones budget?- A budget that takes your spending down to the minimum required to survive and fulfill your financial obligations. It'll get you through a rough patch, but it won't leave you with a lot of extras in the meantime. 

Causes that lead to one using a bare-bones budget are; job loss, debt, etc. 

The budget helps you get back on track. 

The budget includes; 

a) housing

b) utilities

c) gas(fuel) - to necessary places

d) debt repayment

e) food

f) phone(airtime) - I personally prefer to get monthly minute subscription to all networks. It's more convenient and affordable. 

g) insurance payments - health, life, disability premiums etc.

h) essential family expenses- daycare, school tuition, alimony, child support etc. 

i) personal care - prescription medication, toiletries, work clothes, hair cuts(as needed to look presentable at work)

The budget does not include;

a) entertainment spending

b) cable / satellite TV

c) clothing

d) cell phones & landline extras - unless they are vital to your job or safety.

e) restaurant meals

f) gas for non-essential trips

g) vacations

h) hobby spending

i) non-essential personal care - cosmetics, manicures, massages and extra hair services (color, highlights, perms etc.)

I know a bare-bones budget sounds hash and a bit intense, but there are times in life when you need to make sacrifices for the greater good. It is what you need to get caught up. 

I personally used this budget and it got me out of debt, and I'm still not done with it, I'm still using it to build my emergency fund.

It may seem hard and impossible at first but two, three months down the line you'll get used to it. And after all is said and done, you'll be so proud of the achievement you will have made. Remember, you're not alone, I'm with you, I'm using the budget to build my emergency fund and when I reach my target, I'll use the budget for another project, i.e, car purchasing. 

Kindly write to me and let me know if you'll try the budget, if it works, well and good, if it doesn't, of which I highly doubt, you can always try again. I'm rooting for you so don't stop rooting for yourself.

Till next time, take care.

Jacky. 😘