A new bare-bones budget
I like to create a bare-bones budget whenever I get a new job or my living situation changes. It helps me understand how much I’ll need to live off of should I ever lose my job (which happened in 2014 when the company I worked for laid off almost half its staff). Since I’ve had my job (and my new home) for almost two months now, I figured it was the perfect time to re-evaluate my financial situation – especially since the last time I created a bare-bones budget was back in February 2014.
So over the weekend, I took a look at my current financial situation. And after calculating how much it would cost me per month, I’m extremely happy to see that Employment Insurance (about $524/week) would be enough to cover all of my bare-bones budget expenses – without having to touch my Emergency Fund.
You can see I was able to eliminate over $500 from my monthly budget without much effort, and I know that if needed, I could cut that number down even further. Plus, if for some unfortunate circumstance, I had tapped out my EI resources and Emergency Fund, I could rely on RD to help out if absolutely necessary.
Anyway, at some point in 2016, I’ll be testing out this new bare-bones budget for a month – just to make sure I can still do it. I’m confident that I can, but the food budget will be a tough one. It’s been about 4 years since I last tried (and succeeded) at a $100/month grocery budget, but it’s a really good exercise to do every couple of years. :)
Is your bare-bones budget up-to-date?
Author: Krystal Yee
I’m a personal finance blogger and marketing professional based in Vancouver. I’m a former Toronto Star (Moneyville) columnist, author of The Beginner’s Guide to Saving and Investing, and co-founder of the Canadian Personal Finance Conference. When I’m not working, you can usually find me running, climbing, playing field hockey, or plotting my next adventure.