If a lack of cash is your greatest concern then you are either not budgeting properly or not budgeting at all. In order to get your finances in order and to achieve your monetary goals you need to have a financial plan. Here we examine some ways to make your financial situation a little less problematic.
You don’t want to risk being evicted from your apartment or having your electricity or telephone disconnected. To prevent this you need to not be shy or afraid to ask to be put on a payment plan and/or for payment extensions. While this is something you cannot do on a regular basis, in order to help you in a jam learn to negotiate. In most cases you will find that your requests will be granted as long as they are reasonable.
Take stock of the bills you owe and prioritize them. In other words figure out what bills must be paid first. From there set up an appropriate payment schedule for yourself based on the dates on which you get paid. If you have bills that are already past due then call the companies in question and tell them that you are in the process of catching up. Inquire how much you need to pay to get up to speed. If you cannot pay the full amount then be honest with the company and offer to pay what you can.
Making the minimum payments on your credit card or cards will take you a considerable amount of time to pay back. You risk adversely affecting your credit score. What is even worse however is to not make your credit card payments at all. This will worsen your debt load and it will not put you in good standing with the credit card company. It will also lead to a late fee and the default rate will go up. This can make paying off the balance even more difficult. Even if you must make the minimum payments for a certain span of time do that instead of neglecting your payments all together.
Budgeting when you are broke is not the same as budgeting when you are in a good place with your money. When you are in financial survival mode as opposed to thriving mode you need to put aside the savings rule that says you should save 10 percent of every paycheck. Putting 10 percent of what you earn every two weeks into your savings account can seem next to impossible when you are just getting by. That is why you must forget about putting money into savings when you are broke. You need to address the bills and debts you have first. Once you get your money into a more stable position only then should you think about fattening up your savings account.
Take a close look at how you spend your money. If adjustments need to be made then make them. Budgeting when you are broke often necessitates making some difficult choices and setting aside frivolities and concentrating only on the necessities of life. It is not fun but it can be an important step in getting back on your feet again. Find ways to economize in every area of your life.
Choosing generic brands at the grocery store and drug store as opposed to name brand items can make a big difference in your bill. Turn off lights when you leave a room and switch to the newer light bulbs that use less electricity. Don’t waste water. Take the bus to work instead of driving your car for a while. This will save you money on gas and potential car repairs. Ask others how they reduce costs in their lives. You might be surprised to discover that other people have ideas that you had not even thought of!