By Corrie C This post may contain affiliate links. See disclosure policy linked in my footer.
You may have recently lost your job or gone through some other unforeseeable circ*mstances that resulted in a loss of funds. Whatever the reason, almost everyone experiences a time in their lives where they can't meet their financial obligations. Instead of throwing your budget out the window, rework it. There are ways to budget when you don't have enough money to pay all your bills.
Pay the Important Bills First
First things first. There are some bills that are much more important than others. Your mortgage (or rent), electric, water, and car payment are important bills that must be paid. If you're in a really tough spot, your car payment may not be possible. If that's the case, make sure you have a way to get to your job. You also need to have money for groceries. Almost everything else can be paid only if you have money left over.
Eat From Your Stockpile
If you have a stockpile of food, now is the time to utilize it. Eating from your stockpile during a difficult situation will save you a lot of money. Yes, you may get down to where you're eating beans and rice, but sometimes you have to do what you have to do.
Cut Unneeded Expenses
We all have expenses that we do not need. If you're having trouble paying your bills, now's the time to cut back. You can easily get rid of satellite/cable service, cell phone service, video streaming service, weekly trips to the movies, eating out, etc. These are things you want, but do not need. Don't let money get eaten up with items that aren't necessary for survival.
Get Help
There are so many programs available. You can get help to pay for food through food stamps or food banks. You can get help with your electric and heating bills by contacting your providers. There are so many ways to get help during times of need. Many areas even have good Samaritan clinics where you can get free or very inexpensive health care. Even creditors are usually willing to work with you.
Send What You Can
If creditors refuse to work with you, send what you can each month. As long you're sending something, the creditor can not take you to court. But, don't let your creditors intimidate you so that you end up sending money you need for your mortgage/rent, food, electricity, etc. Those are much more important.
It can be easy to panic when you don't have enough money to pay all your bills. However, there are things you can do to make sure your most important expenses are taken care of.
How to Live Below Your Means {without feeling deprived}
Reader Interactions
Comments
Candy
I am trying to live on SSI $750. Per month. I wanted to work but government is blocking my efforts. I go to the food bank. I drive only twice a week I don't have cable I don't eat out. What else can I do. Everyone saying work under the table. I can't lie I try to live according to the Bible.
I'm so sorry you're going through this! $750 a month is very difficult to live on, and I agree there's likely not much more you can cut. I did find this information on the SSI site about a Ticket to Work program where you can still continue to get some benefits even while working - https://www.ssa.gov/pubs/EN-05-10095.pdf. Hope that helps!
Reply
Kris
I recieve SSD but I have neighbors living on SSI of $750 and one even on $735! I like the code you live by, never lie to government (or really anyone) because you can lose what little you were getting. However, you are allowed to make some income without it affecting you SSI. It isn't a whole lot but it helps my friends make ends meet better. The Ticket to Work program is good if you are able to get back into the workforce, but if your disability prevents that or your up there in age like I am and not likely to get in a door on a new career then please look at how much you legally can earn before it affects your benefits. You should qualify for foodstamps without any problems. Also you can check into programs in your area that help out with utilities on a monthly basis (we have one that helps 9 months out of the year where I live). Check with your church as well, they probably have a benevolence fund to help when you hit a bad month. Use the food pantries, I know the food isn't great, but it is something you can eat that you don't have to buy. Good luck to you, I hope my suggestions help. God bless!
Reply
Jenny
I once hade 4 kids and my husband wasn't making enough,try planting a garden in the summer if you don't have a yard plant in containers,what you don't eat freeze or can,make extra money pet sitting easier than babysitting
Reply
Kandi
It is possible to grow some vegetables indoors, in containers. I grow green peppers, and tomatoes indoors. You do have to pollinate them by hand but you can find how to do that on youtube without a problem. I suggested to my husband getting a beehive for our indoor garden. He said I could live with the bees and he's moving outside! (I was joking of course)
The idea is to spend only what's in your bank account. If you budget $100 a week for groceries, for instance, don't hesitate to put things back to avoid going over. Or if you spend more than you planned on gas one month, try trimming some expenses in another spending category.
The idea is to spend only what's in your bank account. If you budget $100 a week for groceries, for instance, don't hesitate to put things back to avoid going over. Or if you spend more than you planned on gas one month, try trimming some expenses in another spending category.
What Does Living Paycheck To Paycheck Mean? Living paycheck to paycheck means you spend all your income on your monthly living expenses – like your rent or mortgage, utilities, groceries and transportation – and have little to no money left over.
Key Takeaways. The 50/30/20 budget rule states that you should spend up to 50% of your after-tax income on needs and obligations that you must have or must do. The remaining half should be split between savings and debt repayment (20%) and everything else that you might want (30%).
Failure to Adjust the Budget: A static budget may become outdated as your financial situation evolves. Life events such as job changes, salary increases, or unexpected expenses can impact your financial landscape. Regularly review and adjust your budget to reflect changes in income, expenses, and financial goals.
The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings. The savings category also includes money you will need to realize your future goals.
One way is to live below your means by making wise choices with your spending. This may mean sticking to the basics (like food and housing) or cutting back on luxury items like entertainment or expensive clothing." Brian also suggests that "one of the best ways to save money on a low-income budget is to get creative.
Try the 50/30/20 rule as a simple budgeting framework. Allow up to 50% of your income for needs, including debt minimums. Leave 30% of your income for wants. Commit 20% of your income to savings and debt repayment beyond minimums.
The approach's popularity can be found in its simplicity: You divide your income into three pots and allocate it according to the following percentages: 50% goes toward “needs,” such as rent, food and minimum payments on credit cards and other debt; 30% for “wants” such as trips or entertainment; and the remaining 20% ...
As a result, it's recommended to have at least 20 percent of your income left after paying bills, which will allow you to save for a comfortable retirement. If your employer offers matching 401(k) contributions, take advantage so you can maximize your investment dollars.
You can take steps to make sure that the medical bill is correctly calculated and that you get any available financial or necessary legal help. If you do nothing and don't pay, you could be facing late fees and interest, debt collection, lawsuits, garnishments, and lower credit scores.
Debt consolidation works by taking out a single loan to pay off multiple other debts. True, consolidating debt with a personal loan means trading one kind of debt for another.
“It could affect employment, housing and more.” Avoiding payment also means that creditors can sue you for unpaid bills. In some states, you could get your wages garnished or have your assets seized. You're still paying your outstanding debt even if you aren't making the payments directly.
Address: 787 Elvis Divide, Port Brice, OH 24507-6802
Phone: +9779049645255
Job: Senior Healthcare Specialist
Hobby: Cycling, Model building, Kitesurfing, Origami, Lapidary, Dance, Basketball
Introduction: My name is Sen. Emmett Berge, I am a funny, vast, charming, courageous, enthusiastic, jolly, famous person who loves writing and wants to share my knowledge and understanding with you.
We notice you're using an ad blocker
Without advertising income, we can't keep making this site awesome for you.
