Here’s a simple step-by-step way to budget when your income is limited:

1. Know Your Income

• Write down exactly how much money you take home each month (after taxes).

• If your income varies, calculate the average of the last 3–6 months and budget for the lowest month.
  
  

2. Track Every Expense

• Keep a log (notebook, app, or spreadsheet) of all spending—rent, food, transportation, bills, subscriptions, even small purchases.

• This shows where your money really goes.
  
  

3. Prioritize Needs Over Wants

• List your essential expenses first: housing, utilities, food, transportation, minimum debt payments.

• Cut or reduce non-essentials (subscriptions, eating out, impulse buys).
  
  

4. Create a Spending Plan

• Use the 50/30/20 rule (adjusted for your situation):

  • 50% → Needs

  • 30% → Wants

  • 20% → Savings & debt payoff

• If income is very limited, savings may start small (even $5–10 a week).
  
  

5. Build a Small Emergency Fund

• Save gradually until you have at least $500 for unexpected expenses.

• Use a separate savings account or envelope system so it’s not easy to touch.
  
  

6. Lower Expenses Where Possible

• Cook at home instead of eating out.

• Cancel unused subscriptions.

• Use public transportation or carpool.

• Shop sales, use coupons, or buy secondhand.
  
  

7. Increase Income If Possible

• Take on small side jobs, freelancing, or part-time work.

• Sell unused items.

• Apply for assistance programs if you qualify.
  
  

👉 Key tip: Every dollar should have a job. When you give your money a clear purpose, it’s easier to stay on track.