Some people say, “I’m broke” when what they mean is “I have no disposable income to spend on this item/experience, but I won’t die if I don’t spend on it”.

For others, it literally means “I don’t have enough money for my next meal/to pay next month’s rent”.

Here’s how to budget for either situation while still keeping a handle on your sanity.

The absolutely ‘necessary’ expenses

1: Food

• Take a packed lunch to work.
• Do a mini-challenge i.e. how to cook healthy for under RM3 per meal. If you stick to that, the monthly cost for four meals per day (breakfast + lunch + dinner + a snack) x 30 days x RM3 per meal = RM360 per month per person.
• Cook instead of eating out: Cooking for two or more brings costs down.
• Buy “nasi campur” for lunch. Ask for extra rice, then divide that into two portions. Eat the other half for dinner. RM3 or less per meal is doable, depending on where you buy the food.
• If you want to start cooking but have no equipment, save up for these, in this order: electric kettle, rice cooker (+ steamer attachment), stove/induction cooker (+ pans). You can cook so much with just these.

2: Mobile phone

• If your monthly plan is expensive, switch to a cheaper provider and/or get on the cheaper plan.
• If you’re on a prepaid arrangement, get top-ups for cheaper.

3. Car / Parking and Toll / Petrol

• Use public transport.
• Generate income with your car in the following ways: become a Grab driver, or get paid to use your car for advertisements.
• Use  cashback credit cards to earn back some money for petrol. For example, the Amex card from Maybank 2 Cards gives you a 5% cashback on selected weekend spending, including petrol.
• If you have an expensive car with ridiculous monthly payments, consider downgrading to a Myvi or something similar. That’s better than having your car repossessed.
• • If you don’t use your car that much, sell it. Car ownership costs more than you think.

4. Public transport

• If you can’t walk, cycle. If you can’t cycle, take the LRT. If you can’t take the LRT, call for a Grab (you can collect Grab reward points and claim free rides).
• Car-pool.
• Live closer to your workplace so you can walk to work and save money on transportation.
• Work from home.

5: Utilities and rent

• Move to cheaper accommodation or get roommates/housemates.
• Forgo the air-conditioning.
• Check for electrical equipment in your house that are energy suckers and get rid of it.

6: Bills and loan repayments

• Make a list of all recurring payments, then cut down where you can.
• Review your subscriptions and consider if you can cancel some.

7: Miscellaneous needs/money emergencies

• Keep your health up and stress levels low.
• Take good care of personal items that you use regularly so they last longer.
• Borrow whatever items you can from family and friends. Asking for help is sometimes necessary.
• Become a member of the Buy Nothing Project on Facebook – someone may be trying to get rid of just the thing you need.

‘Not Technically Necessary’

Say hello to your new mantra: If you don’t buy these, you won’t technically die. You have to stop actively looking for new things and be content with what you have or don’t.

1: Social dates

• If you’re an introvert, you can ruthlessly say no to social engagements you don’t really want to go to in the first place.
• If you’re an extrovert, actively choose to hang out with friends who don’t use expensive items and experiences as a status symbol. You’ll die broke trying to keep up with them.
• Make friends with people who are business-minded or who prefer to make things instead of consuming things. It’ll rub off on you and that’s a good thing.

2: Food

• Recognise that food is a “mini luxury”. We buy Starbucks and such to feel better about ourselves, to reward ourselves when we’ve been good with expense-cutting measures.
• Stay away from places with food outlets whenever you’re feeling bored, stressed and/or lonely. That means: no roaming around aimlessly in malls and no going out for the sake of going out.
• What to do with all that time? Find ways to earn money instead.

3: Donations and gifts

• If you’re truly broke, halt all donations. If you’re broke and something is important to you and you want to donate, go ahead, but limit yourself.
• If you must give a gift, re-gift what you already own, make something or create an experience.

4: Random things

• Identify your weaknesses. For some people, it’s clothes. For others, it’s games. It can also be collectables, gadgets, tobacco etc.
• Give yourself a small amount (RM10 per month for starters) to spend on these. That limitation will force you to be creative while not giving up your hobbies cold-turkey.

This article first appeared in ringgitohringgit.com

Suraya is a corporate writer-for-hire and the blogger behind personal finance website Ringgit Oh Ringgit. She is more of a minimalist, less of a consumerist, a konon DIY enthusiast, a let’s-support-small-businesses-over-big-corporations kinda girl. Prior to her current role, she worked in various capacities within the non-profit industry.