

This is the correct way to manage a budget.
The budget software I use (“you need a budget”) follows a similar philosophy; based on the way you describe you financial circumstances, paying for that software is probably not in your budget, but I suspect you will find the “rules”/method/philosophy described on their website helpful.
We lost power for 3 days back in 2006. The water heater still had hot water in it when power was restored. It wasn’t piping hot that last day, but was still good enough for a shower. I was quite impressed.