There are many situations where you may find yourself needing to tighten your budget, whether it’s because you were just laid off or, on a brighter note, you’re preparing to build a large purchase.

Insert: A bare-minimum budget.

A bare-minimum budget (aka a bare-bones budget) is exactly what it sounds like. It’s a budget that accounts for only the nonnegotiable essentials and removes everything else. The idea is that it’s a temporary way to get by so that you can endure a layoff or save up big-time; it’s not permanent. This may not be the most glamorous way to reach your financial goals, but it’s pretty simple. Follow the steps below to create your own bare-bones budget.

Creating a bare-bones budget

Start with the nonnegotiables

Figure out your monthly take-home pay

Utilize a budgeting app

First thing’s first: Figure out what exactly you can’t live without. This includes monthly costs like housing, utilities, food, transportation, insurance and even minimum debt payments (like on a credit card). Paying the minimum is part of a bare-bones budget because you’re paying just enough to not get flagged for late or insufficient payments and to prevent your credit score from taking a hit.

Write down what each of these essentials cost and total that number up.

You then want to figure out your monthly income after taxes, or how much you take home. If this varies month to month (perhaps you’re a freelancer), employ your lowest recent month to be on the conservative side.

Once you subtract your nonnegotiable amount from your monthly take-home pay, that’s basically your bare-bones budget. If there’s capital left, this gets put into a safe and accessible high-yield savings account (see some top picks below). In this account, your cash will grow with an above-average return and it’s there whenever you need it. If there’s no capital left after accounting for your essential costs, then you’ll have to find ways to construct those essentials cheaper. For instance, perhaps you can negotiate a utility plan or try shopping at a less expensive grocery store.

Top high-yield savings accounts

When it comes to stripping down your expenses, it’s easier stated than done. Beyond just the acknowledgment of telling yourself to stop spending on takeout and such, there are likely memberships and subscriptions that you have to figure out how to cancel, too, and all that can take time. A budgeting app can actually help here.

Even with the free version of Rocket Finances, you can get subscription tracking. This means that you can see all your recurring subscriptions in one place, which is much nicer than having to scroll through your bank and credit card statements. You’ll also be able to link your financial accounts, create budgets and track all other expenses.

Rocket Capital

Cost

The basic plan is free. Rocket Wealth Premium is $7 to $14 a month with a 7-day free trial. Bill negotiation services cost 35% to 60% of the first-year savings, if the negotiation is successful.

Standout features

Easily cancel unwanted subscriptions, track your spending and credit score, automate savings and get help lowering bills. Rocket Finances Premium includes additional services like net-worth tracking, credit reports and a subscription cancellation concierge service

Security

Rocket Finances accesses transaction data via an encrypted token, uses Plaid API so user credentials are never stored, provides bank-level 256-bit encryption and hosts servers on Amazon Web Services

Availability

Offered online and on both the App Store (for iOS) and on Google Play (for Android)

Terms apply.

Allows you to easily view and cancel unwanted subscriptions

Offers a free version

A+ from Better Business Bureau

Nonrefundable bill negotiation fee can be up to 60% of savings

Premium pricing varies

Monarch is another budgeting app that stands out for its easy-to-use mobile app, customizable transaction categories and ability to collaborate with your partner or spouse. The platform also offers features like net worth tracking and goal creation. Monarch is a positive choice once you find yourself in a more stable financial position (if you got laid off) or once you’re closer to your savings goal (if that was why you needed a bare-bones budget) since it does cost $14.99 per month, or $99.99 annually. This also touches on aspects of wall street.

Monarch

$8.33/month (billed $99.99 annually); $14.99/month (billed monthly) – get 50% off your first year with code CNBC50

Free trial

7-day free trial is available before subscribing

Net worth tracker, investment portfolio tracking, goal creation and progress tracking, budgeting and expense tracking

Categorizes your expenses

Yes, but users can modify

Links to accounts

Yes, bank and credit cards, as well as IRAs, 401(k)s, mortgages and loans

Offered in both the App Store (for iOS) and on Google Play (for Android); web version also offered

Security features

Utilizes industry-leading security practices, according to Monarch’s website

Easy-to-navigate money-tracking dashboard, including a net-worth tracker

Easily syncs to your bank, credit cards and other financial accounts

Users can add collaborators for free

Seven-day free trial

Subscription is pricier than competitors

Recommendations in the “advice” tab are generic

And if you liked the practice of separating your nonnegotiable essentials from all other costs, try Goodbudget. This app offers the digital version of the cash stuffing method where you deposit funds into different virtual envelopes that represent spending categories like housing, transportation, food and savings.

Goodbudget

Free for 20 total envelopes; $10/month (or $80/year) for unlimited envelopes

Allows couples to leverage the envelope system digitally for budgeting, and allows couples to track their debt

Yes, but users must manually input transactions since the app does not sync to your bank account

No, users must manually input purchases and transactions

Offered in both the App Store (for iOS) and on Google Play (for Android) and as a version for laptops

Information is using bank-grade 256-bit SSL

Free version of the app available

Digital envelopes help couples save for massive goals that matter to them

Funds management courses and resources available

Transactions must be entered manually

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