What is the bare-bones budget?
The bare-bones budget is designed by Better Budget to help you get started with finances. With it, you can set up a solid budget that's extremely easy to maintain and understand. Your budget will be divided into three categories: Bills, Spending, and Savings. You'll setup a budget following best practices and even start to grow a savings! Read the steps below to get started!
Want us to do this for you?
I'll help you set up your bare-bones budget for free! I recommend doing this if you don't like math or find it overwhelming. I also recommend it if you're having a hard time getting through the steps below.
I just need a few things to get started...
Once you gather these things, just message me and make sure to leave your email. I'll get started on your budget right away!
Steps to the bare-bones budget
1. Open two checking accounts and a savings
The first step is to simply have two checking accounts and one savings account. It's not required, but you'll see later how much easier it is if you have the three. Eventually, you'll have just the accounts you need, but that's for more advance budgeting methods. For now, we're keeping it easy and simple. We just want you to get you started with budgeting.
2. Add up all your bills
Add together all the bills you're required to pay per month. Netflix, Spotify, rent, electric, water, student loan payments, credit card payments, etc. I want you to find every thing you pay for per month. Then, add it all together. Here's an example:
3. Figure out a savings goal
A savings goal will be a percentage. You'll hear many different recommendations, ranging from 10%-50% of your take home pay. We'll be taking a percentage of your after-bills (the required payments from step 2) pay, so you can take a little bit of a higher percentage and still be okay. Something normal would be like 15%, 20%, or 25%.
4. Calculate your percentages
This will probably be the most math you have to do. You may have not realized it, but you just divided your paycheck into three categories: Bills, Savings, and Spending. Now, we have to figure out the percentage of your paycheck for each category. Don't worry, I'll walk you through it and if you still need help, just message me. I highlighted the formulas in blue below.
I know the math can be difficult. Just message me for help, if you need it. Math comes easy to me, so I'm confident I can figure out your numbers in only a few minutes.
Let's call our friend Joe.
5. The hard math is over, finishing things up
You will now have three important numbers, your Bills Percentage, Savings Percentage, and Spending Percentage. Remember the 2 checking accounts and the savings account you had from step 1? This is how it maps....
Joe get's paid $1400 from his bi-weekly paycheck.
6. Keep up with it
This budget is called bare-bones because it's made to be not complicated. The math might have seemed hard, but keeping up with it is simple and easy. You just repeat step 5 every time you get paid. Then, simply use checking 1 for all your bills and checking 2 for any spending. If you do this, you're practicing budgeting and on your way to becoming a budgeting expert!
For this budget to work, pay your bills from Checking 1 (i.e. your bills checking) and spend from Checking 2 (i.e. your spending checking). If you don't follow this, you'll make keeping up with the budget harder for yourself!
I'm really happy with how this post turned out. Again, I'll help you get started with your budget if you just message me. I only need a few details to get started on your awesome bare-bones budget! Thanks for reading the Better Budget blog.
Update: As you probably can see, I updated the style to the blog. Let me know what you think! This is only temporary, as I'm working on a Better Budget website now, which will give it an even newer, sleeker look. We've also started social media accounts! You can follow us on Instagram @BetterBudgetCo. You can also find the direct link to our accounts on the right. More social media accounts to come!
Better Budget Co
Your guide to all things personal finance. We're big fans of goal getting budgets, debt fee living, and a good cappuccino.
My name is Corey and I have a passion for budgets and personal financing. I can talk about it for days (weirdly enough). Hope you enjoy the blog!
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