If your family lost all your income, how much money does your family need to pay all your bills? This is an important number. This is your “Survival Budget Number.” This can give you hope or a target to shoot for in a downturn.
Let me illustrate, for a family of three that I have worked a budget with, their simplified budget is about $3,500 per month. That is taking out all the fluff, such as eating out, concert tickets, etc… If they had to really tighten their belts, they could probably cut another $500 a month before selling houses and cars.
The Survival Budget Number becomes a source of peace as they think through how many $3,500s they have in the bank. If $3,500s are in short supply, it helps them identify what they need to secure for them to literally live month to month on their Survival Budget.
You may not be at this level of need in your current situation, but this mindset can help you as you figure out how to curb your spending. Can you begin to make some adjustments to a new TEMPORARY normal? A recent Gallup Poll says that 2 out of 3 families have no working budget, so putting together a survival budget may difficult, but it is important.
On our website (www.freedom5one.com), we have a Financial Hotline with an online process to help you put together a Survival Budget. One of our coaches will even do a follow-up phone call to answer any questions you might have about the budget. And it’s FREE.