Every Thursday in 2025, I will answer questions about money and/or budget. If you have a question you would like me to answer in an upcoming post, please submit it here.
Today’s question comes from Rachael:
My regular monthly bills (such as electrical, rent and water) are so behind that every time I feel like I’m close to meeting another month right here and I’m back again. I’ve been out of work for three months and I’m still struggling even though I’ve been working since September and I can’t make a budget (effective) when my entire salary is trying to grab it. I still have to buy groceries and put gas in the car, but I spent as little as possible trying to keep the lights and not getting evicted. I know there has to be a better approach and I really appreciate any suggestions. – Rachael
First of all, I want to say I hear you. You are working hard, doing your best, but it feels like you are stepping on water, barely floating.
I know this feeling because I feel it too. I remember when Jesse went to law school, our income was so insignificant, it felt like every penny we made was going straight back to the nude basis (it was true!), it felt like we were forever There is no way to get ahead, everyone else can spend money, here we can hardly afford basic things like groceries, or even no money to shop in thrift stores.
(Yes, “everyone else can spend money” is not true, but it’s very different from where we are in our lives and how we make choices (e.g. not taking debt – when Jesse went to law school.)
But I want to encourage you – don’t give up hope! Your desire to get a budget is a big step in the right direction for wise financial decisions, and your willingness to make sacrifices and do your best is rewarding!
Here is my advice for you now:
1. First of all, pay attention to absolute necessities
When your salary has expanded to its maximum, the key is what to prioritize must Being paid. What are the absolute necessities you have to pay for in order to survive?
These are usually similar things:
- Housing (rent/mortgage)
- Utilities (electricity, water, natural gas)
- Food (basically cheap groceries, no meals)
- Transport (gas, car payment, necessary repairs)
These necessities must be first. If your income is limited, make sure you cover these incomes before anything else. At the moment, nothing else is a priority.
Tip: I recommend writing down all fixed fees using our budget tracker. When you do this, consider: “If I absolutely have to do this, can I live at least in the short term?” If so, it’s not an absolute necessity, nor is it something I want you to prioritize.
2. Plan for past bills
Since you are lagging behind rent, utilities, and other bills, your first step is to contact the provider and landlord. Many companies have tough plans, payment plans or options to delay or allocate payments.
Call them and explain your situation. This can feel scary, but when you communicate, most companies are more willing to work with you than if you miss a payment. honest. in advance. Don’t guarantee that you are not sure what you can deliver.
3. Find community support and resources
When you need help, it is not shameful to ask for help. If you are struggling with grocery or utility payments, check out your local food pantry, community assistance programs, or nonprofits that provide financial assistance to rent and utilities. Even the church often has plans to help those in difficulties.
Also, if you have past utility bills, many states have Energy Assistance Program for Low Income (LIHEAP) This may help pay for some of your utility expenses.
4. Create a realistic nude budget
The budget doesn’t have to be fancy or complicated – it just needs to work hard for your situation. Start with what you have, even if it’s just your salary to pay the bill directly. Use our budget tracker to help you.
- List your total revenue for the month.
- Write down your absolute basic fee.
- If you still have any money, allocate it to your bill that catches up to expired.
If you are in an income situation still Not a necessity to cover you, it’s time to increase your income (more on that later).
5. Increase your income – even temporarily
Sometimes cutting costs isn’t enough when you’re behind – you need to bring in more revenue to catch up. If possible, study:
- Part time job, weekend performance or hustle and bustle. Consider delivery services, babysitting, tutoring, freelancers and even seasonal jobs.
- Sell items you no longer need. Check out Facebook markets, offer or local consignment stores.
- Use your skills to generate additional income. If you have the talent for writing, organizing or producing, research the fast-growing free performance.
Even if it’s a few hundred dollars a month) it can make a huge impact in getting you out of survival mode and going into more stable ground.
Tip: Post on your social media or Facebook page to let friends and family know that you are looking for some jobs that can earn extra income and welcome any ideas, suggestions or projects you need to help with! I heard from multiple people that this simple action opened doors they had never thought about and even led to long-term work!
6. Avoid new debt at all costs
It might be like billing on a credit card or taking out a payday loan might provide some relief, but in the long run, it only makes the situation worse. The goal is to get yourself out of the debt cycle, not to increase your debt. If possible, avoid taking on new debts when trying to get back on your feet. Remember: this is a short-term situation. Willing to make some truly radical short-term sacrifices for long-term interests!
7. Give yourself grace and keep moving forward
I know I feel overwhelmed now. But I also know that even the most challenging financial struggles can be overcome. Keep moving forward and don’t let setbacks stop you. Even with microscopes, progress is progress. Watch out and celebrate every victory! This is a baby from where you want to go!
Final encouragement
You are not alone, you are not defeated – you are fighting. You are working to turn things around, and that’s important. The fact that you are seeking advice and seeking solutions tells me that you are determined to do the work.
Keep moving forward, keep looking for ways to grow, and don’t ignore the fact that this difficult season is like this – season. you Will be Solve this problem. One day, you will be able to look back at how strong you are, how much you have learned and how far you have gone.
What advice and encouragement do you have for Rachael? Leave a comment and share any advice, inspiration or encouragement you have. I know it means a lot to her and the others in the shoes.
Image source: Here and Here
Want to do this the year you finally stick to your budget?
Tracking your budget doesn’t have to be overwhelming or complicated! Use these Free budget spreadsheet Easy to plan and track your spending every month!
