The basic idea of budgeting while being broke is the same as other forms of budgeting but with a different approach when it comes to expense breakdown.

It might be tasking and be challenging but you can actually budget without having so much money.

Here are ways to budget when you are broke

1. Evaluate your financial status

The first thing you need to do when creating a budget when broke is to evaluate your financial status.

Assess how much money you spend. How much money goes out of your income and how much money comes in? If you spend a lot of money without getting any return, then you should check and assess your finance.

Evaluating your financial status will help you plan and create a realistic budget.

2. Break down your expenses

It is important to break down your expenses. Check your past expenses and use it to categorize your all your spending.

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Separate your wants and your needs. This would help you know what is more important to you than other stuff and also help you make better financial decisions when it comes to prioritizing.

3. Check your spending problems

You need to be sure of what you feel might be causing your financial problems. Check out your spending habits and also take note of habits that might be leaving you broke all the time and in turn ruining your finance.

Do you spend on impulse or you shop without a list? There are different kinds of bad money habits that people exhibit.

Find out the bad money habits you need to work on. Looking at such habits will help you plug the leak in your budget.

4. Cut down on expenses

The first place to cut down expenses is your wants. Wants are the thing we desire but are not really necessary to have.

Downsize on the things you can do without in your everyday life. This doesn't mean your budget should be so crazy, you have no room to have fun.

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It's important to allow yourself a little breathing room for fun in your budget.

If you can't afford to buy or get something, don't bother trying to get it by all means. It would definitely affect your finance.

5. Save money on bills

You should try to save money on some bills. Examples of bills you can save on the utility bills we pay.

Watch how you use electricity in your home and see how you can reduce the rate of such bills monthly.