Summary of “How to Budget When You’re Broke”

Follow these steps to set up a budget if you’re broke.
Not all experts agree on which is best to focus on first, debt or savings.
The “Debt Snowball” method: Pay your smallest debts first.
The “Debt Avalanche” method: Pay debts with the highest interest rates first.
As finance blog Ready for Zero points out: “Proponents of the Debt Avalanche point out that you can lose thousands of dollars by choosing not to tackle your highest interest accounts first.”
The most important thing is to keep your debts organized and come up with a plan on how you’ll tackle each one.
Once you pick your debt repayment strategy, allocate an amount toward each debt.
Calculate how long it will take to eliminate each one, with your budget in place.

The orginal article.