How to Make an Austerity Budget

Inside: How to create an austerity budget and why being strict with yourself (but not forever) might be just what you need.

Losing weight is simple. Eat less than you burn off. Saving money is simple. Spend less than you make. It’s the easiest of math problems. They never fail.

And yet. And yet….they both feel impossible so often. Our brain doesn’t really want to do either one, so it tricks us at every turn. “I had a really hard day…”. “It’s on sale, so I’m actually saving money…”. “Just this once won’t hurt.”

This is why dieting and budgeting both fail. We leave too much room for excuses, for rationalizations, for exceptions.

Our solution? Take away the gray area. No-spend months do this well but they are so unrealistic that they create their own excuses. We need to make something strict but firm that leaves no wiggle room. No eating before noon. No spending any money outside the budget. You don’t have to wonder whether a doughnut is okay just on the weekends. And you don’t have to wonder whether you can buy those shoes.

Here’s your step-by-step guide to creating a super strict budget that leaves no room for excuses. Not forever, just for now.

1. Set Your Timeline

The magic of this is that it’s temporary. It’s your reset button. Choose a specific end date, somewhere between one and six months from now. Write it down. Circle it. This is your finish line.

Why six months maximum? Because you can do almost anything if you know exactly when it ends.

Pick your timeline based on your goal:

• One month for a quick reset after overspending
• Three months for a specific savings goal
• Six months for a major debt paydown or lifestyle reset

Pick a specific date – maybe the start of summer, or your birthday, or the first of next month.

The stricter your budget will be, the shorter your timeline should be. A moderately strict budget might work for six months. A very strict one? Let’s just do one.

2. Define Your Non-Negotiables

These are the bills that get paid no matter what – your “keeping the lights on” expenses. But be warned: your brain will try to sneak extras into this category. Let’s be ruthless here.

True non-negotiables are:

• Rent or mortgage
• Basic utilities
• Minimum debt payments
• Medications
• Basic groceries (we’ll define this closely)
• Basic transportation to work

Notice what’s NOT on this list:

• Your Netflix subscription (this is a luxury)
• Your gym membership (a luxury)
• Your cell phone’s data plan (you can survive on a cheaper one)
• Pet grooming
• Getting your hair highlighted
• Fancy supplements

For groceries, set a strict weekly number. It doesn’t matter what you buy, it just matters that you stick to the number. If that means eating down a pantry you’ve built up, cool. If it means helping a friend with yard work and getting invited to stay for dinner, great.

Same with gas. I don’t care if you carpool, take the bus with some of your discretionary spending, walk everywhere, borrow a bike. All that matters is staying in budget.

Staying within the number is what matters. How you do it is up to you.

Write down your absolute non-negotiable number. This is your “must-pay” total. Everything (and I mean everything) else will come from what’s left.

3. Create Your “Everything Else” Number

This is where most budgets go wrong. They create fifteen different categories and then play mental gymnastics moving money between them all month. “Well, I went over on groceries but under on gas, so maybe I can move some from my ‘personal care’ category…”

We’re not doing that. You get ONE number for everything that’s not in your non-negotiables. ONE. So let’s figure out what that number should be.

Now, this is the important part: take what’s left after your non-negotiables and immediately set aside your goal amount.

• If you’re paying down debt: set aside that extra payment amount
• If you’re saving for something: set aside that savings amount
• If you’re building an emergency fund: set aside that amount

What’s left? that’s your “everything else” number

For example:

Income	$4000
Non-Negotiables	$2800
Debt Paydown Goal	$800
Everything Else Number	$400

This number has to cover:

• Everything you buy that isn’t basic groceries
• Every “but I need it for work” purchase
• Every “but it’s educational” expense
• Every “but it’s on sale” item
• Every “but I deserve it” moment

When it’s gone, it’s gone.

Is is possible that there’s a super tiny amount for everything else? Yes. That’s why it’s called an austerity budget. But remember your timeline: this isn’t forever. This is just you choosing to be uncomfortable for a while so you can reach your goal.

4. Remember The Number Is The Boss

Remember that “everything else” number we calculated? That’s your only rule. When it’s gone, it’s gone. It’s that simple.

Will you need strategies to make this work? Probably. You might find yourself:

• Deleting shopping apps
• Unsubscribing from store emails
• Carrying only cash
• Finding free alternatives to your usual entertainment
• Making coffee at home

But honestly, this is generic advice you’ve heard a million times. And it’s never worked because it’s just a list of little strategies that may or not be effective in what really matters. Which is, you guessed it, obeying the number.

5. Track It (Simply)

You only have two numbers to track (amen.). Delete your silly spreadsheet you never use. But that doesn’t mean you don’t have to track things.

The easiest way? At the start of each month (or pay period):

• Pay all your non-negotiables first
• Put your “everything else” money somewhere separate
• When that separate money is gone, you’re done spending until next month

Some people find it easiest to use cash for their “everything else” fund. You might prefer a separate checking account or even a prepaid card. The method doesn’t matter – what matters is being able to check your remaining balance instantly and easily. Because all that matters is… you know.

Don’t overthink this part. Don’t track every penny or categorize your purchases. Just watch that “everything else” number go down and stop when it hits zero.

I’m Cheering You On

Remember how we started, with the simple math of spending less than you earn? An austerity budget turns simple math into a simple plan. Just two numbers to watch and one timeline to follow.

This budget will feel strict. It will feel uncomfortable at times. But when you reach your end date, you’ll have reached your goal and you’ll have a story to tell.

Ready to start? Go back to step one, pick your date, and let’s do this.