if your income is 20$ per month how much should you spend to stay on budget
To determine how much you should spend to stay on budget with an income of $20 per month, you need to establish a budgeting strategy. Here's a step-by-step guide on how to approach this:
1. Determine your financial priorities: Begin by identifying your essential expenses, such as rent, utilities, transportation costs, and groceries. These are the expenses that you must cover each month.
2. Calculate your essential expenses total: Add up the costs of your essential expenses. Let's say the sum of your essentials is $15 per month.
3. Set aside an emergency fund: It is wise to allocate a portion of your income towards building an emergency fund, which can help cover unexpected expenses. As a general rule, aim to save about 10% of your income each month. In this case, $2 would be a reasonable amount for your emergency fund.
4. Allocate remaining funds: After considering your essentials and setting aside your emergency fund, you have $3 left. This amount can be allocated to non-essential expenses, such as leisure activities, entertainment, or dining out.
5. Review and adjust: Monitor your spending habits and adjust your budget as necessary. If you find that your essential expenses exceed your income, you may need to re-evaluate your spending priorities and look for areas to cut back.
It's important to note that a monthly income of $20 is extremely limited, and it may be challenging to cover all expenses comfortably. In such cases, it's crucial to seek additional sources of income, explore government assistance programs, or look for financial support from local community organizations.