Part 3: How to Make a Budget When You’re Starting from Scratch
The idea of budgeting, when you’re barely scraping by, might sound like a cruel joke. But this is when a budget matters most.
You don’t need a fancy app or a complicated spreadsheet. All you need is a piece of paper, a pen, our one-page budget download, and enough honesty to face your numbers head-on—because this is how to make a budget when you’re starting from scratch.
Let’s break it down together.
1. List Your Income (No Matter the Amount)
The first step is to figure out what’s coming in. It doesn’t matter if it’s $10 from walking the neighbor’s dog, food stamps, a part-time job, or financial help from family. Write it down and don’t round up. If your income changes week to week, average what you’ve had over the last month. If you’re not sure what’s coming, write down what you know. This number is your starting line, not your finish.
You can’t build a plan for your money if you don’t know what you’re starting with, even if it’s not enough. Facing that number, as tough as it might feel, puts you back in control.
2. Needs vs. Wants: Get Brutally Honest
Make two columns on the back of your budget sheet: NEEDS and WANTS.
Needs are things you truly can’t go without—shelter, food, basic hygiene, transportation to work or appointments, court-ordered payments, and any meds. This is the stuff that keeps you alive, out of trouble, and moving forward.
Wants are…well, everything else such as cigarettes, takeout, new clothes, and entertainment. Not saying you will never have these. But for now, they’re on the back burner.
3. Make a Plan for Debts and Court Fees
If you owe money in the form of court fines, restitution, old credit cards, or child support, don’t ignore these, even if they feel impossible. Start by writing down what you owe, to whom, and what the payments are (or what’s expected).
If you can’t pay right now, call or write. Explain your situation. Most places would rather get a few dollars a month than nothing at all, and showing effort goes a long way if you end up back in front of a judge. If you’re overwhelmed, look for reentry programs or legal aid clinics that may offer help negotiating debt or payment plans.
Ignoring debt doesn’t make it disappear. Even small, regular payments or honest attempts to set them up helps.
4. Find Ways to Save
This might feel impossible but hear me out. Saving isn’t just for people with money. It’s about forming a habit, even if it’s a dollar here, a few coins there. If you get paid in cash, keep a jar. If you use a bank, set up a separate account and move a tiny bit over when you can. Some weeks, you might save nothing. That’s okay. The goal is to get used to the idea that not every dollar you earn needs to be spent right away.
Look for little ways to save on what you buy. Food pantries, thrift stores, bus passes, and community resources are not a sign of weakness. They’re tools. Use them. Every dollar you don’t spend is a dollar you can put toward a phone bill or even just a cup of coffee on a hard day.
Useful Resources for Returning Citizens
There are organizations, hotlines, and websites designed for people in your exact situation. Here are a few places to start:
Budgeting and Money Management
- Consumer Financial Protection Bureau (CFPB):
Offers free guides on budgeting, managing debt, and dealing with creditors. Their “Your Money, Your Goals” toolkit is designed for people with limited income. - 211: Just dial 2-1-1 on your phone or visit 211.org. Get connected to local help for food, housing, bills, and more.
Debt and Court Fee Help
- Legal Aid: Every state has some form of legal aid for people with low income.
Find your local office here.
Ways to Save and Stretch a Dollar
- Find Food/Clothing Locator
- Thrift Store Directory: Find low-cost clothing, furniture, and household items.
Local Resources
- Reentry Programs: Ask your parole/probation officer, case manager, or even your local library for a list of local reentry programs. Many offer help with jobs, housing, and sometimes even emergency cash.
- Community Action Agencies: These exist in most counties and can help with bills, rent, and emergency needs.
Keep This in Mind
Budgeting is about making the best of what you have, not about shame or “doing it wrong.” If you mess up, start again tomorrow. If you’re feeling stuck, reach out. The resources above aren’t perfect, but they’re a start and you’re never as alone as you might feel.
Want a simple, printable worksheet to help you put all this into practice? Check out our Reentry Budgeting Worksheet.It walks you through the basics, step by step.
If you want more local info, ask at your library, community center, or supervising officer. They usually have lists of programs for folks getting back on their feet.
Next time: how to start building credit and plan for bigger goals, even if your score right now is “nonexistent.”
Stay strong. Keep moving. And remember asking for help is a sign of strength.