When money is almost gone, every dollar counts. Building a “bare-bones” budget can be your lifeline in tough times. This isn’t your average budgeting plan – it’s a survival budget focusing only on absolute necessities so you can get through a financial crisis.

Maybe you’ve lost a job, faced an emergency expense, or are just stretched too thin this month.

A bare-bones budget will strip your spending down to the essential expenses you need to live (think rent, groceries, electricity), cutting out all the extras.

While that might sound daunting or unpleasant, remember that it’s usually a temporary measure to get you back on track. By making a plan and prioritizing needs over wants, you can regain a sense of control even when money is extremely tight. This guide will walk you through clear steps to create a bare-bones budget, offer tips to reduce expenses, and point you to free tools that can help.

What Is a Bare-Bones Budget (and Why You Need One)?

A bare-bones budget means cutting your expenses to the bone – it includes only what’s absolutely necessary to survive. Think of it as your emergency or survival budget. The goal is to ensure you can pay for the “four walls” of basic living: a roof over your head, utilities, food, and essential transportation.

By eliminating all non-essentials, you free up whatever limited money you have to cover these basics. People typically use a bare-bones budget in situations like: a job loss, a medical or family emergency, or when debt has become overwhelming and you need to regroup financially.

It can also be used proactively – for example, if you want to save up quickly for a goal, you might go “bare-bones” for a short time.

It’s a short-term plan to get through a crisis or tight period.

Below, we’ll go step by step through creating your bare-bones budget.

Step 1: List Your Essential Expenses

Start by figuring out what expenses you must pay to keep yourself (and your family) safe, fed, and housed. These are the non-negotiables – the true essentials. A good approach is to review your recent bank statements or transaction history. Highlight every expense that represents a need, as opposed to a want. Common essential expenses include:

• Housing: Rent or mortgage payments, and any property taxes or essential home insurance. Keeping a roof over your head is top priority.
• Utilities: Electricity, water, gas/heating, and basic garbage/sewer. You need to keep the lights on and water running. (Internet and phone can be considered utilities too – more on that below.)
• Food: Groceries for home cooking. Aim for basic, nutritious foods that you can prepare cheaply. Cut out restaurant meals, takeout, and coffee runs in this phase – those are wants, not needs.
• Transportation: If you have a car, include gas for essential travel (work, grocery store), and any auto insurance or a bare minimum for maintenance. Or include public transit costs if that’s how you get around.
• Insurance & Healthcare: Health insurance premiums, prescription medications, and essential medical supplies. Taking care of your health is a necessity. Also include basic insurance like auto insurance (legally required) or renter’s/home insurance if needed.
• Debt Minimum Payments: At least pay the minimums on any debts (credit cards, loans) if you can, to avoid default and credit score damage. In hardship, some lenders have forbearance options, but assume you need to keep paying minimums for now.
• Communication: A basic phone plan and internet service might be essential, especially if you need them for work or job hunting. However, consider stripping these to the lowest-cost plans or using only one if possible. (For instance, if you have a cell phone with a good data plan, maybe you can live without home internet temporarily, or vice versa, depending on your situation.)
• Basic Personal Care: Include only essential hygiene items (like toothpaste, soap, diapers for a baby, etc.) as part of groceries or household needs.
• Child care or Pet care: If you have children and you need childcare to be able to work, include the bare minimum childcare expenses. Similarly, basic pet food or medication for a pet is essential if you have one.

Your list of essentials may vary, but be brutally honest about what a “need” is. For example, electricity = need; your Netflix subscription = not a need. Sandwich ingredients for lunches = need (food); lunches from a deli = not a need. If you’re unsure about something, ask: “Will I face serious hardship or risk if I do not pay for this?” If the answer is yes, it’s likely a need. If no, it’s likely a want.

Tip: Once you have the list of essential expenses, add them up. This gives you a target bare-bones monthly budget number – basically the least amount of income you need to scrape by. It might be eye-opening to see how much (or how little) that sum is compared to your normal spending.

Step 2: Cut Out Non-Essential Spending

Next, make a second list: everything in your current spending that didn’t make the essentials list. These are the expenses you will eliminate or pause while you’re on the bare-bones budget. It can be helpful to actually write these out, because you’ll want to remember what to avoid. Common non-essentials to cut include:

• Subscriptions & Entertainment: Streaming services (Netflix, Hulu, Disney+, etc.), cable TV, music subscriptions, monthly gift boxes – all of these should be canceled or put on hold. As one finance writer put it, “no more eating out, Netflix, or travel” in a bare-bones scenario. It may hurt (who doesn’t love TV and takeout?), but remember it’s temporary. You can survive a few weeks or months without Netflix; humans did it for millennia. Utilize free entertainment like library books, free streaming services (many libraries offer free movie streaming), or YouTube for now.
• Dining Out and Drinks: This is usually one of the biggest areas to cut. Restaurants, fast food, coffee shops, bars – slash them all from the budget. Cooking at home is much cheaper, so plan simple, low-cost meals (think pasta, rice, beans, eggs, frozen veggies – cheap but filling staples). It’s not fun to give up restaurant food, but you can consider it a challenge to get creative in the kitchen.
• Hobbies, Recreation, Travel: Postpone any vacations or trips. Cut out paid hobbies (that yoga class or craft store habit needs to pause). Look for free hobbies or exercise (go for walks or do home workouts instead of a gym membership). Any costly recreational spending (movie theaters, sporting events, etc.) should stop for now.
• Shopping & Miscellaneous: No new clothes (unless absolutely required for growing kids or a job interview, etc., and even then, go cheap or secondhand). No gadgets, no home decor, no discretionary Amazon buys. This is a “buy nothing unnecessary” period. Use up what you have; make do, mend clothes, borrow items if needed. The mindset should be: if it’s not critical to survival or work, I don’t spend on it.
• Extra Services: Things like cleaning services, lawn services, or any paid convenience should be cut if you can do it yourself. Also consider pausing charitable donations temporarily if you are comfortable doing so (take care of your four walls first; you can always resume donations later).

Cutting these things will likely free up a significant chunk of money. It may feel like a stark change, but remind yourself: This is about survival and regaining stability. You can add back the “fun stuff” once you’re past the crisis.

Step 3: Reduce and Negotiate Your Essential Bills

Even among your essentials, look for ways to trim those costs down further. This step is about getting creative and proactive to lower the bills you do have to pay. Here are some strategies:

• Housing: If you rent, you could talk to your landlord about a temporary rent reduction or plan (some may be understanding if you’ve been a good tenant, especially if you’ve hit a hardship). If you have a mortgage, see if your lender offers hardship forbearance or refinance options. In extreme cases, you might consider moving to cheaper housing or getting a roommate to split costs – though moving isn’t always feasible immediately, a roommate could quickly halve your rent and utilities.
• Utilities: Try to lower utility bills by conserving energy. For electricity/gas, turn the thermostat down in winter (wear sweaters indoors) or up in summer (use fans), take shorter showers to save water heating, unplug electronics not in use, etc. Little changes can reduce the monthly bill. Also, if you’re struggling to pay, many utility companies have budget plans or hardship programs – don’t hesitate to call and explain your situation; they might offer a payment plan or temporary relief.
• Insurance: Shop around for better rates. For car insurance, call your provider and ask if there are any discounts you qualify for or if you can drop non-mandatory coverage temporarily. For health insurance, if your income has dropped significantly, see if you qualify for any assistance or a different plan subsidy through Healthcare.gov (in the U.S.). It never hurts to ask – sometimes even mentioning you’re considering canceling or switching can prompt your insurer to offer a lower rate to keep you.
• Phone/Internet: Contact your phone and internet providers to see if you can switch to a cheaper plan. Many companies have retention offers or unadvertised budget plans if you say you’re thinking of canceling. At minimum, remove any extra features and ensure you’re on the lowest tier that still meets your basic needs. Also consider: do you need both a cell phone and home internet? If not, maybe cut one service during this tight period to save money. There are also programs (like Lifeline in the U.S.) that provide discounted phone or internet for low-income households – worth checking out.
• Groceries: You can trim your grocery bill significantly with planning. Use coupons and store loyalty deals if available. Plan simple meals around cheap ingredients (rice, beans, lentils, canned goods, generic brands). Cut out pricier items like soda, alcohol, chips – stick to basics. Also consider visiting local food pantries or charities if you are really in a bind; there’s no shame in getting help with food when you need it.
• Transportation: Drive less if you can – combine errands to save gas, carpool if possible, or use public transit if it’s cheaper. If you have two cars in the household, maybe drop to one for now (suspend insurance on the car not in use, if allowed). Some people even temporarily sell a car or switch to biking for a while to eliminate car expenses in a true financial emergency. At the very least, shop around for cheaper gas or use gas reward programs.
• Debt Payments: If you can’t afford even the minimums, call your creditors. Many credit card companies have hardship programs where they might lower your interest rate or let you skip a payment. Lower your payments to the minimums due for now, so you’re not paying extra while in crisis. It’s not ideal long-term, but it’s about survival – you can catch up on debt repayment when your income rebounds. (Just remember to resume paying more than the minimum once you’re on steadier ground, to avoid interest pile-up.) For student loans, look into deferment or income-driven repayment plans that could reduce your payment to zero if your income is very low.
• Retirement Contributions: If you were auto-contributing to a 401(k) or IRA, you might pause those contributions temporarily to free up cash. Be cautious here: if your employer offers a 401(k) match, try not to lose that free money unless absolutely necessary. But in a crisis, cash flow for current bills takes precedence. You can always resume contributions later or bump them up to catch up.

By negotiating and cutting costs in these areas, you might save a surprising amount. For example, perhaps you call your internet provider and shave $20 off your bill, find $30 of savings in groceries by switching to generics, and pause a $50 retirement contribution – that’s $100 more for necessities this month.

Step 4: Create Your Bare-Bones Budget Plan (and Stick to It)

Now that you know your essentials and have cut everything else, it’s time to actually build the budget. This means assigning every dollar of your very limited income to a job: covering those essential expenses we listed in Step 1. If you haven’t already, total up the cost of all the “must-have” monthly expenses after any reductions from Step 3. This total is what you must cover each month with whatever income or savings you have.

If you find that your current income does not cover even this bare minimum, you have a few options: use emergency savings if available, look for temporary income sources (side hustles, selling items, gig work), or seek assistance (more on that in a moment). But let’s assume you can cover it or are taking steps to cover it.

Allocate your income: If you have a steady paycheck or unemployment benefit, plan exactly how that money will be spent on essentials. For example, if you get $300 weekly, you might allocate $200 of each check to rent and utilities, $50 to groceries, $20 to gas, and $30 to other needs. By planning this out, you ensure every dollar goes to a priority (this is essentially a zero-based budgeting approach, giving every dollar a purpose). It also helps prevent accidental spending on non-essentials, because you’ve “spent” the money on paper (or in an app) ahead of time on the important stuff.

Use budgeting tools (free ones!): Sticking to a bare-bones budget requires tracking what you spend, since there’s no wiggle room. Fortunately, there are free or low-cost budgeting tools that can help you stay organized. For a survival budget, you might actually prefer a manual method like a spreadsheet or notebook – whatever keeps you most engaged. Here are some options:

• EveryDollar: This is a simple zero-based budgeting app (from Ramsey Solutions) that has a free version you can use forever. You manually input your transactions, which actually can be good for awareness. It’s very straightforward: you set your budget categories (focus on your essentials categories only) and track spending against them. The free version doesn’t connect to your bank (you enter expenses yourself), but that’s fine when you have few transactions. EveryDollar’s philosophy is perfect for bare-bones budgeting – it forces you to plan for every dollar.
• Goodbudget: An app based on the envelope budgeting method. It also offers a free tier (allows a limited number of envelopes/categories) which is usually plenty for a bare-bones budget because you won’t have many categories anyway (just the basics). You allocate money into “envelopes” like Rent, Utilities, Food, etc., and then track spending out of each. This visual can be helpful to make sure you don’t overspend – when an envelope is empty, you stop spending in that category.
• Mint or Other Free Apps: Mint is a popular free budgeting app that can connect to your accounts and automatically track expenses (though you’ll want to double-check it categorizes things correctly). It’s good for an overview, but make sure to disable any spending that isn’t essential in your Mint budget.
• PocketGuard or Personal Capital (Empower) also have free features to track spending. Use whatever tool you find easiest.
• Spreadsheets or Printables: If apps aren’t your thing, you can absolutely do this with a simple spreadsheet (Excel or Google Sheets) or even on paper. There are many free downloadable budget templates online; a quick search for “bare-bones budget template” might yield a ready-made sheet where you can plug in your numbers. Even a hand-drawn chart or notebook divided by category can work – the method doesn’t matter as long as you commit to tracking. Some people find writing expenses down by hand gives a stronger sense of control. Do what works for you.

Once your budget is set up, make it a habit to check in often – ideally daily or every few days. During a bare-bones period, your spending should be minimal, but you want to ensure, for example, that your grocery spending for the month is on target and you’re not unknowingly overshooting. If you allocated $300 for groceries and midway through the month you’ve spent $180, you know to be careful with the remaining $120.

If you find yourself near a limit, you might have to adjust by cutting something else slightly. A budget is a plan, but real life can throw curveballs – maybe gas prices spiked or an essential item cost more than expected. That’s where having a small emergency fund (even $100) can be helpful. If you don’t, then you might juggle within your essentials (maybe spend $20 less on groceries to cover extra gas, for example).

Stay disciplined: Sticking to a bare-bones budget can be emotionally challenging. It might feel restrictive or depressing to say “no” to things constantly. Here’s how to cope: remind yourself why you’re doing this (to get through a tough time and prevent an even worse financial downfall like eviction or piling debt). Keep a countdown or goal in mind – e.g., “I’m doing this for 3 months until I find a new job” or “until I save $1,000 for an emergency cushion.” Knowing the end goal can keep you motivated. It also helps to find free joys in life so you don’t feel miserable: take walks, have movie nights with free library DVDs, start a journal, have friends over for board games or potluck (cheaply), etc. Small pleasures that cost nothing can keep your spirits up.

Extra Tips and Support When Money Is Tight

In addition to the budgeting steps, here are a few survival tips and resources that can empower you during a money crunch:

• Communication is Key: If you truly can’t pay a critical bill, communicate with the provider. Whether it’s your landlord, utility company, or a creditor, reach out and explain the situation. Many will work with you – for example, utility companies often have hardship programs, and creditors might grant a temporary hardship plan. It’s better to arrange something than to silently miss payments.
• Seek Assistance: Remember that there are community resources available. In the U.S., you might qualify for assistance like SNAP (food stamps) for groceries, Medicaid for health coverage, or local food banks and charities that help with food, clothing, or even rent in emergencies. There’s also 2-1-1 (a helpline in the US) that can connect you to local aid. Using these resources can alleviate some pressure on your bare-bones budget, and they are there for exactly these situations.
• Temporary Income Boosts: While cutting expenses is one side of the coin, think about increasing income too, even if just temporarily. Could you pick up a small side gig or sell a few things (as mentioned in the side hustles article above)? Even an extra $50 a week can help pay for groceries. Some ideas: drive for a delivery service for a few weeks, do odd jobs on TaskRabbit, babysit for a neighbor, or sell unused items on eBay. It might be tough if you’re already working full-time, but consider what’s feasible without burning out.
• Use Cash or Envelopes: A psychological trick to avoid overspending is to use the cash envelope method for certain categories. For instance, withdraw your monthly grocery or gas budget in cash and put it in an envelope. Use only that cash for the category – when it’s gone, it’s gone. People tend to spend more mindfully with cash because handing over bills hurts more than swiping a card. It also prevents overdrawing your account. Goodbudget (mentioned earlier) is a digital version of this, but if you’re comfortable using actual cash, it’s very effective for a bare-bones budget.
• Stay Positive and Celebrate Milestones: Give yourself credit for taking action. It’s empowering to gain control, even if it means making sacrifices. Celebrate small wins – did you successfully get through the month paying all essentials on time? That’s a win! Did you find a way to cook all meals at home for a week? Awesome, treat yourself to a relaxing free activity as a reward (like a bubble bath or a hike in the park). Keeping a positive mindset will help you stick to the plan.
• Plan for the Future: While in the short term you’re in survival mode, as things improve, plan to build an emergency fund so you don’t have to cut to the bone next time a crisis hits. Even saving $10 a week when you’re able will add up. The ultimate goal is to make your finances more resilient. Think of the bare-bones budget as a learning experience – you might even discover you can live with much less “fluff” than you thought, which could lead to long-term savings habits.

Example Scenario: Jane did it!

Imagine Jane was living paycheck to paycheck and then lost her job. She immediately switched to a bare-bones budget. She listed her essentials: $800 rent, $150 utilities, $250 groceries, $100 car expenses, $50 insurance, $100 minimum debt payments – total about $1,450/month.

Unemployment and some savings could cover roughly $1,500/month for a short time. She cut out her $60 cable/internet bundle (keeping a $30 mobile data plan only), canceled $40 in subscriptions, and paused $100 of monthly dining out and $50 gym membership. She negotiated her car insurance down by $20. After these cuts, her essential spending dropped a bit further, and she even managed to put $25 a month into savings.

By using a budgeting app and being disciplined, she survived three tough months until finding a new job. She credits the bare-bones budget with helping her avoid missing rent and keeping her from accumulating new credit card debt during the crisis.

Conclusion: You’ve Got This

Facing a financial crunch can be scary, but building a bare-bones budget is like creating a safety harness for your money – it locks in the essentials and cuts off the rest, so you can weather the storm. It may feel restrictive, but it’s also empowering. You’re taking charge of the situation instead of letting the situation control you. By following the steps – identifying true needs, slashing wants, trimming costs, and diligently tracking your budget – you are giving yourself the best chance to stay afloat until things improve. Use the free tools and resources available (budgeting apps, community assistance) to lighten the load. Don’t hesitate to try side hustles as well, many are easiers than you think!

And remember, this is temporary. With time, you’ll be able to add back some comforts. In fact, you might find that after living on a bare-bones budget, you appreciate those little extras even more – or discover new habits of saving that you keep for life.