You may think that you don't have enough money to budget when you are counting every penny, but you're wrong. Budgeting is planning how and when you are going to spend every penny. In short, it means that you know where you are going to spend your money before it comes.
Budgeting allows you to plan for expenses in advance and to start to put money aside for the bigger expenses that may come just once a year. When you are budgeting, you can also track your spending trends. This can let you choose areas where you may be able to reduce if you need to cut back or save for a long-term financial goal, like an emergency fund.
Find Ways to Earn More
If you are not making enough at your current job to cover your necessities and save money, then you need to find a way to increase your earnings. This may mean taking on a second job to help you catch up on your overdue bills
It may also mean looking at a long-term career change that will allow you to make more money. Going back to school for additional training is a good option. If going back to school does not appeal to you, look at jobs in your field or a similar field that offer higher pay.
Make Saving a Priority
Start saving money now. There are two ways you need to focus on saving. First, put money into a savings account that you will not use except for emergencies. This is called an emergency fund. You may start by putting aside but $20/week. This is as simple as eating at home one night a week or skipping the movies.
Get Out of Debt
You cannot begin to build real wealth when you are paying more in interest than you are earning in interest.3 If you want to change your situation, you need to take the steps that will help you get out of debt.
First, make a plan to get out of debt. Once you have your budget set.