CREATING A BARE-BONES BUDGET | Budget Tips + Low Income

There are many situations where you might want to use a bare-bones budget in your life. A loss of income, a drastic financial change, cut hours or wanting to reach a financial goal very quickly.
A bare-bones budget is essentially a temporary tool that you can use to compensate for those life changes. It's also a great resource to use if you want to look at where you can decrease fixed expenses.
CHAPTERS:
00:00 Introduction
00:50 What is a bare-bones budget?
02:13 When to use a bare-bones budget
04:06: Bare-bones budget worksheet
14:53: Conclusion
➡️ HOW I TRACK MY SPENDING: bit.ly/3aIe89I
➡️ FREE BARE-BONES WORKSHEET: bit.ly/3vyAru3
➡️ HOW TO USE A BUDGET CALENDAR: bit.ly/2IzF2Vj
➡️ FINDING YOUR WHY: bit.ly/3aJUryj
➡️ THE BUDGET MOM'S FINANCIAL FREEDOM STEPS: bit.ly/3cfJXsp
➡️ HOW TO GET STARTED WITH THE CASH ENVELOPE METHOD: bit.ly/2vQJaO5
➡️ HOW TO CREATE A PLAN OF ATTACK TO PAY OFF DEBT: bit.ly/2wDETxF
ABOUT ME
I'm the blogger behind www.thebudgetmom.com. I have a rambunctious 6-year-old son, live in Washington, and I'm passionate about helping people with money management and personal finance. Let me know what you like to learn more about! Leave me comments and suggestions on my video and let me know!
YOU CAN FIND ME AT:
📝 BLOG: www.thebudgetmom.com
📘 FACEBOOK: / thebudgetmom
📸 INSTAGRAM: / thebudgetmom
📌 PINTEREST: / thebudgetmom
GET STARTED
➡️Start Here: www.thebudgetmom.com/start-here/
➡️Free Email Course: bit.ly/2UYgNFf
➡️Free Resources: bit.ly/2PDmTHz
➡️GET 10% OFF my popular Budget-by-Paycheck Workbook - Coupon Code TBMKZbin bit.ly/2CR7U9n

[@MikaNTey]

We do a no spend month. We do this every 3rd month. Only pay bills and buy necessities even when it comes to food. No extras.

[@nancyval325]

This is a great idea!

[@Sarah-Katsandres]

How do you keep yourself on track during no spend months? I struggle so much with keeping the momentum!

[@MikaNTey]

@@Sarah-Katsandres Budgeting helps alot and to plan ahead. I record everything and I also use that month as a pantry clean out month. Plan our meals around what we already have. Strong will and mindset helps a lot. Ive been doing it for years. It took time for me to have the momentum I have, but seeing how much I save at the end of the month is what keeps me going. I actually look forward to them now. 😊 GL

[@Sarah-Katsandres]

@@MikaNTey thank you!! I need to work on the mindset and willpower haha

[@tashuwamustgray7220]

my no spend months are jan, feb, mar, jun, jul, and aug, every year.

[@michellehobbs3709]

I love that you prioritize your dog’s care. Pets are an important part of our families, and it is our responsibility to take care of properly.

[@anetaneykova1]

Definitely that is very important. That's why some people have pets. For instance- instead of having pets I spend this amount of money on monthly travels,and have positive emotions. But if the pet is sick or dies that is heart breaking. Different people, different priorities. Be blessed

[@rebeccasuraci7666]

Yeah but sometimes there ARE options. There are perfectly fine generic versions of things even medical/rx foods. My dog has pancreatitis and I can’t afford spending $120 a month on his z/d canned food. He HAS to have a specialized diet but there are other gastro foods on the market that arent $5 a can. I’m even discussing with the vet making his food by hand. In his case he needs low fat moderate protein and it’s very safe end economical to make him rice oats lean meats and veg. Same for her . There is something lower cost same ingredients on the market for sensitive skin comparable to name brand- or even just getting the dog a good supplement and a somewhat streamlined diet versus going all the way to sometimes unnecessarily expensive options .often I f you just research you can find safe feasible options that are even lore economic and often EVEN healthier (I think a home made diet under vets supervision would be wayyyy better than any canned or bagged diet!). Be well

[@mirainoivuyo984]

I think this is a great worksheet when you are first evaluating your spending because it helps you organize your obligations and figure out what you can you cut or lower or substitute to save money. An emergency fund is what should ideally get you through a temporary situation. A bare bones budget can be a tool to get you to that point.

[@beatacrochets]

This is almost exactly what I did when my unemployment was coming to an end and Instill had no job prospects. It really helped me also see just exactly what that minimum income needed to be to survive vs. how much to actually live and prepare for the future.

[@Artsymeholly85]

Ha, I'm on bare bones right now and didn't even realize it. Saving for a vacation and have a medical bill I want to pay off. So I'm eating out of the pantry as much as possible, no eating out and no extra spending.

[@parrish9909]

“For one specific season in our lives” - hits deep and gave me peace.

[@MsMontavis]

I love this. I was getting ready to begin "living beneath my means" to really cut my expenses and SAVE like I've never done before. This is extremely helpful to outline expenses and identify the ones to keep, lower, or cut 😊

[@mioangel1227]

It's never too late to learn. I'm over my 60's. I need to pay my mortgage faster. TFS! 🙏

[@pygmyowl6275]

Danm, I always in crisis mode, LOL.

[@sarahjessica1139]

I love this! Thank you for sharing your budgeting method with us.

[@fembot521]

I just became a widow at 45 with two kids and my husband used to make a lot of money. Now suddenly I am having to live on 1/4 what we were living on before. Thank you for these videos!

[@specialk8927]

Sorry for your loss

[@angelinavickers8584]

I hope you are blessed during this time. 💜

[@baus7]

Prayers. How are you doing now?

[@zz-ic6vy]

Can you give any tips?

[@MarissaOFM]

Great video as always. Informative and practical. Thanks!

[@kristinuribe8343]

Thank you for the awesome video, this was so helpful!

[@EmilyDowgialo]

This was amazing!! Thank you for sharing this!

[@brickinvesting]

solid video, everyone needs to start a budget and tracking everything.

[@darlenenagel4848]

Thank you so much Miko. This came just in time... Going into intense mode for a while... I was wondering how to do it and i saw this video.. What a God send.. Thanks

[@tammy707]

Thank you for all of the free resources

[@AuroraHenderson]

Thank you for explaining this. Now I understand how to better utilize it, and I will be doing so later today. 😀

[@alexandrahooper6521]

That was great! Thank you for covering this so thoroughly. Do you ever had that feeling of "I am afraid to look and put it on paper" ?

[@almarosa154]

Good idea!!! I'm going to try this out...

[@MichaeleJayeJackson]

Thank you for showing us this!

[@TH0KH]

Ooh perfect. I've got a couple big expenses coming up they my sinking funds aren't big enough to cover yet so this will come in handy

[@housefairy4089]

This was a great walk through of how to use this page. Thank you. I had the print out, but I wasn’t exactly sure of how to use it. Could you do this type of explanation video with some of the other sheets also? Thanks so much!!

[@kallistoindrani5689]

This will be so interesting!

[@theresarockford8888]

I love all your videos. That are great for weekly and bi-weekly and even low income people. One area that would be really nice to see is for the older generation living on a fixed income and how we can save, like off our social security. Just an idea.

[@daisygirl9546]

Same way. I was forced to take early retirement due to health reasons. So, I down- sized, moved into a lower paying rental, then paying myself first to create a $2,000 emergency fund in my savings account, paying my current storage bills while paying off my debts. We are receiving a COLA increase in Jan where I will be adding to the emergency fund while setting financial goals to later buy a home on foreclosure or a tiny one I'll be able to pay for outright. I am unable to work and am waiting on disability which will also increase my monthly income then when able will go back to work part-time or as much as I can to begin paying back into my social security to extend it. Where there's a will there's always a way! Check out David Ramsey and other mentors. There's lots out there. This woman is good also. Showing a good way to analyze our must haves against our wants and how to widdle them down. Good luck everybody!!!

[@vitzaniadominguez6961]

Great worksheet! Gracias!

[@gloriabright7544]

Thank you! Great idea! Very helpful!❤

[@jessicasdiymore5918]

Loved this video it will definitely help me in a future. I'm excited to say we are about to finish paying all our debt. Funny thing I was telling my husband should we get rid of our cable to save money since it expires in April. God bless take care

[@mildredmyrick1811]

I love her videos and I need this worksheet.

[@CupcakesForever]

I really like this and I have been trying to incorporate it into my life. It's hard sometimes because I do have the money in my bank to satisfy my impulse purchases but at the same time I need to be saving towards my goals(car, moving out...). But starting January I'll be taking a pay cut because I'll be going to school fulltime so I really need to get my finances together.😅

[@123kirmizi]

thank you thank you, you made my day

[@teresacarrington244]

Very helpful! Thank you

[@barbaracarbone4658]

Wow that's an excellent worksheet. It truly puts things into perspective whether you're in crisis mode or just want to save more, as you said. Thanks. Great vid.

[@anathebudgetfriendly5963]

Omg I love your videos, I actually cut down some subscriptions like, Hulu, ipsy!!

[@rasyiqahahad5500]

Hi there! I just want to say I love the content of your videos~ I only started budgeting after few years ago but nevertheless, I've learnt a lot from your videos. Thank you so much! It also really motivate me especially when I didn't do well in budgeting for some of the months. Thank you for the content and please do continue to do this! *Thumbs up!

[@livingwithjojo7340]

Thanks so much for the advice. I did not know I could possibly do a average payment method with my utilities. This would be perfect for me.

[@PrettyBlack42]

Great info .

[@laceygreen6728]

My whole budgeting history is a bare bones budget. My income is about $3 more than my outgoing bills and groceries. I have no car Netflix/Hulu etc. I am disabled and can't get a second job and can't find a side gig that would work for me

[@baus7]

Prayers. How are you on keeping things not in use unplugged? Do you hang dry your clothes? Doing those things help us quite a bit

[@lkmiller2010]

Lacey, could you use your KZbin page to document your budgeting in hopes of eventually getting monetized? Lots of people do that now.

[@shannonjohnson4314]

Can you create your own job like babysitting, house cleaning, selling crafts on Etsy etc.?

[@amaljabri7714]

Your tip are very helpful

[@Meganwitt]

You are changing my life! Thanks for all you do ❤️

[@fondcello1994]

mine too

[@cspann33]

Agreed!! Her budget worksheet are the absolute best thing I’ve come across with my journey and I love it.

[@jessicamoore9771]

Wrote down all the bills me and my husband have mortified how much we spend just in bills

[@Lola-uc1lr]

Thank you so much! I see the worksheet has been added along with other resources! You rock lady! :)

[@MissLionRose]

Big sis I never had 🙏💙🦋 So motivational!

[@vanessaroque4476]

Excellent video

[@smoren879]

Hi Kumiko, Can you make this worksheet available again? I've searched and searched your website and I am not able to find it. I would love to go through this process and this worksheet sounds like an amazing tool.

[@StargazerBudgets]

Love this video, however I could not find this worksheet in your library. I'm going to create something basic and plain in excel instead. Thanks for the new teachings! I kept thinking Crisis mode and intense goal mode were the same thing 😄 Originally using the Dave Ramsey method, I was under the impression to cut everything in order to pay off all of our debt. Wed could not however do beans and rice, let alone cut everything.

[@Courtnos302]

This is an awesome!

[@crazycatlady312]

I'm in intense goal mode so I'll be using the bare bones budget 💪🏾

[@sherylwesterman4987]

I just started using your workbook in March. Now I'm going through and watching your past videos. THIS ONE has been very helpful. I kinda did this on my own, but this has given me ideas to watch and evaluate further. My husband died late last year. He was self employed. I lost his income completely. I'm on SSDI. I'm not able to increase my income. I'm going to need to sell my house (I own it outright) so I plan on selling items that I might be able to get decent money for. I'm figuring that anything that won't sell for at least $50 is going to be donated. I only have one debt: a Home Equity loan. The principal left is approximately $18K. (5% APR) I pay more than the minimum each month, and throw anything extra that I can on it. I would love to have one of your "makeover" plans to see what I might have missed. Anyhow, thank you so much for this channel. You're helping me more than you know. I'm determined to do well and be a good steward of what I have. I'm sad that my husband died, but I want to live! ❤

[@galato4234]

I just found your channel. Thank you for these ideas to make a budget. How do you recommend to manage 2 checking accounts. Thank you.

[@Lola-uc1lr]

Good morning! I want to first start out by saying that your story and your techniques are truly inspiring. I love your video and I am learning so much. ***I tried to find the barebones worksheet, I can not find it**** PLEASE HELP.

[@MsPinksparkles21]

Hello! Do you have any videos for graduate school students? I’m hoping to start a budget since I will be mainly living off of loans and want to take out the least amount as possible!

[@bustybrownie4683]

This was a great video. I will be downloading that worksheet ASAP. I’m getting married in 5 months so I need all the helps!

[@shaiharris8378]

Congratulations!!! I wish you the best in your marriage.

[@maryanne2025]

How’d it go?

[@quirkysaucy]

I just had to go into crisis mode to fund a IRA last minute to avoid a $3k tax bill. I wish I had this three weeks ago. LOL.

[@ATayloredLife]

Crisis mode: Increase in pay & Landlord Increase rent. So now I’m in bare bones mode :(

[@doogieRN1]

Can you do a video showing how to incorporate the Bare Bones Budget into the BBP method please?

[@specialk8927]

Do you have forms for business budget and expense?

[@BentLaces]

I want to figure out what my trade offs are for this barebones/crisis mode budget! I want to try this.

[@laurahopper4988]

I save 60% of my income towards investing. Saving to invest has been my smartest move so far....

[@daviluis5713]

Nice, I agree with you on that 100%

[@barshaislam2720]

Hold solid investments. It creates a source of an extra income and also a retirement life. I'm planning towards it.

[@laurahopper4988]

@@barshaislam2720 yeah great 👍 Keep it going man ✨

[@catherinemax6261]

Hey I'm 42 single Mom. I do a normal 9-5 job. I've saved up some money from pay. Can investing get me an extra income stream ?

[@laurahopper4988]

@@catherinemax6261 yeah I make an extra $3k weekly from my investment package. You just need to play your cards right and be consistent towards it.

[@kmariam]

I guess it’s helpful if you’re already affording a lot of extras. Imagine putting over $800 a month in investments lol I need to start a KZbin channel.

[@nats6190]

I don't understand why people knock Kumiko for being successful. I think her success shows that her methods work!

[@kmariam]

@@nats6190yeah, you didn’t understand the comment.

[@nats6190]

@@kmariam What I see is a lot of people complaining that she (and her budget) are not relatable anymore, because she makes more money now and has a more flexible budget. Would people rather she was still in debt and struggling?

[@lanawilliams2942]

Is there any tax like house& ground or car tax? We in Germany also have to have house insurance like for fire etc. That alone summs up How would you pit those cost in? Since there duo in like every 6 month (For a gas car we pay tax depends on the engines size, so 2.0 tdi is about 400 Euro, 1 liter (almost quarter.of a gallon) is about 1.60 € than insurance for it too, depends on age, drivestyle and area you live in, house and ground tax are quite high, electricity is ridiculous, we pay 300 euro a month and were well off.

[@lisajaramillo2395]

Where can I find the Bare Bones Budget Worksheet? I loved your video (all of your videos actually) and I would really like to challenge myself to the Bare Bones. I did not see it in your free resources.

[@baus7]

Same here. Can you post a link or something?

[@olivewoo522]

I did a bare bones budget for a savings goal. I have no debt.

[@JN-0peny0ureye5]

Fear costs: insurance, materialistic needs, tv/news, others beliefs and needs

[@jeanettemccay]

i do walmart and amazon i do grocery delivery so cant cut those

[@katelynnewsome8976]

I never associated "bare bones budget" with a negative connotation until you said it sounds awful or whatever lolz

[@schaaabag]

This is a good topic but most people can’t cut as much as you have here; the bulk amount of what you cut is your investments. We have mortgages/rents and debt payments where you have post tax investments/savings which makes up like $1400 of your $1800 cut. This is a high income / net worth example, not low income as your title suggests.

[@lynnettemurphy8243]

@A A Your suggestions may be helpful for those living in USA but not in Europe. Not everyone can make stuff or have stuff to sell online. Say they have 1 bed apt, no space for roommate or doing AirB&B. Unless its for family or friends, vetting & references required for babysitting. Can be same with dog walking/sitting. Also insurance may be needed. Can take years to earn from you tube. In Ireland you don't earn money for collection cans/bottles. They just go for recycling. Depending on where you live & given that there's a pandemic getting a part-time job is well nigh impossible. I don't have any debt nor in crisis mode so for me its not an issue. But for lot folk picking up extra work is not an option.

[@AA-ep1ri]

@@lynnettemurphy8243 Informative. I guess Europeans could add this to their list then: • Move to America!

[@didigogo139]

Just because Miko may have more stuff doesn't mean her process still can't apply to us. If you can't cut any further then look to see how you can grow your income.

[@didigogo139]

@@lynnettemurphy8243 Well...Miko is an American so she's speaking from American resources. If your European then look towards a Eurpean resource

[@Maylis98]

Most of your cuts in budget are investment. I already don't have any sort of fun subscription, I don't have debt so I'm not in crisis mode but I have no room for improvement if I want to reach all my goals.

[@thebudgetmom]

If you have cut all unnecessary spending from your budget, you need to tackle the income side.

[@Maylis98]

@@thebudgetmom I'm not in the US, I have very few things to sell and the government quickly comes to take a lot of taxes on additional money you get so not so easy

[@gailkapusta1342]

I was at the library resources I can't find the bare bones worksheet.. Please help

[@heatherwarden2689]

The link and the website sent let you get the work sheet

[@pri.sci.lla.]

This is how I have to budget since I’m in college but hey can’t complain 🙏🏼

[@shelliepage8271]

The worksheet does not show up in the resources.

[@vickiedavis2778]

Could not find the Bare-Bones Budget worksheet

[@angielovesusa]

What do you do when you've already cut everything that's not necessary to live and you still can't afford food?

[@lorrainejoseph2220]

We are saving for our kitchen still cabinets and stones for on the wall. We need 1000 and we are at 450. So a little more. And my husband doesnt know it. He doesnt ask. And that is what i need and we have it we pay it and we dont need to get a loan. And also with daughter every week 8 dollars. 3 for her savings and 5 for her when she needs a new toy. And she might a kids stroaler. And they are expensive so we save it untill christmas.

[@fefewa14tx]

If you wanted you could swap to peloton app for $12.99 per month

[@zz-ic6vy]

Why can't i get the worksheet? I enter password and when i go to free resources then i get asked again for the password

[@kallistoindrani5689]

Question: Would you not include Sinking Funds into a bare-bones budget?

[@michellemorales401]

If the S.F. is for something important, like car inspection and repairs, I would keep it. If not, then I would temporarily stop contributing to it.

[@vlwbug1986]

I have my sinking funds organized into Must Have like Licenses and registration. Should Have like Auto Maintenance. And Nice to Have like Gifts. I would automatically cut all my nice to haves, keep and maybe lower all of my Must Haves, and make a decision on my Should Haves.

[@fondcello1994]

Hi, Love! I like this name better! A question, the emergency fund should be 6 months of "bare bones", "rice and beans" amount or the regular amount

[@thebudgetmom]

For my emergency fund, I like to have mine funded with the amount of expenses that I am paying currently, even if they are not a necessity. But some people like to have just living expenses.

[@fondcello1994]

@@thebudgetmom Thanks, Love!

[@DavidEVogel]

6 times your monthly spending.

[@hollycales1976]

While we are paying off debt, our emergency fund is three months of absolute bare bones, rice and beans expenses. Once we are done paying off debt, we will build our emergency fund to six months of total current expenses.

[@fondcello1994]

@@hollycales1976 thanks

[@angelagreen6524]

Bare bones doesn't mean anything negative to me but rather basic/bare minimum.

[@thebalancedbehaviorist]

would love to have new content

[@brandyroady8366]

Im pretty sure she took a step back when she got pregnant and then had her son.

[@hopetrevino7223]

Life insurance $9 👀 (Company name if allowed or hint)

[@ericcxxxx]

just saying for us poor or paycheck people we us a floating budget.

[@sarahandrade8462]

What is a pelaton?

[@ambi786_]

If im not wrong it is a stationary bicycle subscription so basically like gym on a bike

[@cndgroff]

Is it dangerous to tell everyone you are cutting out your home security???

[@JN-0peny0ureye5]

Inform resources of income changes: Internet Phone Housing Social Services Medicare SS PGE to avoid delay or waisting time

[@bonniewilson8509]

I live like this on a regular basis. It is my normal unfortunately.

[@jeanettemccay]

i cant cut all my subscriptions. i workout at home so need my streaming subscriptions

[@chandrahouston6282]

do you still exist? cannot download the free resources

[@anetaneykova1]

You have lots of spending 🤣🤣🤣🤣 I always practice- half for savings Half -bills,living, what is left does to savings, of course 🥰🥰 Pretty much simple math 🥰🥰🥰

[@Birdmom1823]

💜💙💜💙💜

[@aloven3259]

My scenario… realizing how much we over spend!

[@tinaturull3793]

How do you buy groceries for your son and you $50.00

[@jolleneneven1085]

It’s 450, not 50. The 50 is the amount she saved by lowering the budget.

[@appletinImom0f5]

Wondering why does a bare bone budget sound negative!! For me the word buget means being in control of ur money!! That's is empowering!! The feeling of I tell me money where to go I control what happens with it is a positive feeling.. I think ppl put a stigma against bugeting and counting every penny!! That has to change totally!! I also feel like everyone show have a just the necessities budget at all times and more should be thought of as extra as a blessing!! But hey that's me :)

[@thebudgetmom]

I didn't say the word "budget" sounded negative to me. I said I don't like the sound of "bare-bones" which is just how I personally feel.

[@appletinImom0f5]

@@thebudgetmom to each their own :) I think that's how life should be only what we need but I did enjoy ur video truly !!

[@baus7]

I agree

[@GrannyGarbage]

With those property tax amounts, my speculation might be you live on the West Coast 🤦🏻‍♀️

[@AA-kx5nl]

I think she lives in Spokane, Washington.

[@GrannyGarbage]

@@traceyw3566 I live in California... it’s the worst!!!

[@puregold1725]

Don't go on the trip with your sister. Take that money and invest or pay down debt.

[@julialifeisgood5699]

This is great that you started budget but you need to be more realistic. If you like to pay off all off this debt you need to cut everything. Try to leave on bare minimum. Just making minimum payments not going to help unless you planning to pay for next 30 years . Your husband can bring snacks and cold drinks from home. No eating out . The only eating out if it’s someone’s birthday. I added some of your numbers and you can try to leave on $8000. I’m not trying to be mean I’m just trying to help . Best of luck to you and your family.

[@kastalraoua3713]

Plz translation French 😫🥺😭😘love u

[@Bitbit3427]

I know I fixing to have a rent increase in 2024….so I am putting aside a extra 50 dollars and month and cutting out nexflix and cable tv . Still have Roku which is free. But I don’t watch tv … I read…. Only free books!

[@michellemorales401]

That's a great idea. We usually have a 3-5% increase. I should start factoring that in ahead too. Thanks for the idea. 👍👍

[@michellemorales401]

Love Kitty and Toby Video-bombing at the end. Hahaha. I enjoy doing a Bare Bones Budget several times a year, for Extreme Goal Mode. The nice thing is that if/when crisis mode comes in to play, I already know where we stand and what we need. It minimizes the crisis and I avoid anxieties of the unknown. 🩵💜💙