 TITLE: How to Budget When You’re on a Very Low Income CONTENT: Put Your Budget to Work\n-----------------------\nWhat do you do if your budget shows your expenses are more than your income? The general rule of thumb is you can either spend less money or make more money—but that's easier said than done.\nGoing forward, it's important to track your expenses to help you identify areas where you might be wasting money or overpaying for items and services. Budgeting can also help you come up with strategies for stretching your money further and spending less. If you don't budget, however, you won't know how much more money you need to make or how much less you need to spend to make sure your income can cover your monthly expenses.\nBetween making more money and spending less money, cutting your expenses is the simpler place to start. Here are some way to cut costs:\n*   **Get choosy.** First, distinguish between needs and wants. Do you need streaming music or video services? Can you cook or pack your own lunches and dinner instead of getting takeout? Do you need a gym membership or can you work out at home? These are discretionary expenses, and they're often the best place to start if you're looking to trim your spending.\n*   **Change it up.** You can also take a close look at your variable expenses, which are the items that can change from month to month. You might need to get creative in order to save money on food, transportation and other activities, but all of these things add up over time, and your pockets will thank you.\n*   **Fixed expenses are fair game.** You might also be able to save money on fixed expenses. For example, are there programs you can take advantage of that will lower your mortgage payments? Can you renegotiate your credit card payments? Is there a way to lower your car insurance premiums? You could also consider taking in a roommate to cut on housing costs or even move to a different apartment to save a bit more each month.\nIf you're on a very low income, you may find yourself in a situation where your budget is in the negative. If there's not enough money for everything, prioritize what needs to be cut back on or eliminated altogether before considering other options like using payday loans, which charge extremely high interest and fees and can lead to more debt problems down the road. END