Budgeting is an essential part of taking control of your life.
Knowing where your money goes means you might start steering your financial ship toward your long-term goals.
But mostbudget effortsare entirely focused on the here-and-now, working with your current income and lifestyle.
Which is fineas long as your current income and lifestyle dont change dramatically.
But what happens if you suddenlylose your income?
Whats needed is a minimally viable budgetand you oughta create one now,beforeits needed.
What is a “minimally viable” budget?
The term minimally viable refers to the most stripped-down, basic version of something.
Having an MVB is crucial because it helps you avoid panic and mistakes if disaster strikes.
We cant always predict when were going to be laid off or become unable to work for some reason.
Cancel.Work out which expenses you dont need.
Bebrutalthe key word in minimally viable budget isminimally.
That means cutting everything you dont absolutely needstreaming platforms, gym memberships, subscriptions, etc.
This will depend on your personal situation, of course.
Maybe youre paying for multiple phones or vehicles, but could get by with one.
The key is to go through every single monthly expense and evaluate whether you could live without it.
If the answer is yesno matter how reluctantadd it to your cancel list.
The result is the absolute least amount of money you gotta survive every month.
Step 2: Set a savings goal.
Now you know how much cash youll need per month to get by.
With an MVB you should start with the worst-case scenario, which iszeroincome.
Severance packagesand other potentially mitigating factors.
Unemployment.Know how to apply for unemployment ahead of time and have an idea of what those benefits might be.
