5 tips on how to budget when broke
Credit to Author: Tempo Desk| Date: Wed, 04 Sep 2019 13:03:41 +0000
ONE of the most stressful things that a breadwinner can experience is being financially broke. I can still remember when my father lost his livelihood and needed to borrow from friends and relatives just to foot the bill. It was really humbling at the same time humiliating, especially being turned down by the people whom he used to help. I made a vow to myself that I won’t have to go through the same experience which my dad experienced.
That’s the reason why I believe that I have a tremendous burden to help others to become debt-free and wealthy. I can really feel their pain and relate with people who are going through financial crisis.
If you are going through what my dad went through before, this article is for you.
These are tips on how to budget when funds are low and a lot of bills are piling up:
- Avoid Missing Or Delaying Bills And/Or Debt Payments
Talk to your creditors. Do not avoid them at all cost. Ignoring the problem will not solve the problem, it will just make it worse. It might be a good idea to ask for payment extensions or revise payment schedules from creditors. Missing and/or delaying payments will only make your situation worse. Big interests and late fees will continue to put your finances in bigger danger.
- Pay Your Bills First
Gather all your bills and prioritize what needs to be paid first then devise a payment schedule based on your paydays. Give yourself some time to catch up if some of these bills are already late. In cases like this you will need to call the billing companies and find out how much you can pay now to get back on track. Be humble enough to tell them that you are making drastic measures to be able to be on time with your payments. Be honest about the amount you can afford to pay. NEVER make a promise that you will pay the full amount at a later date.
- Temporarily Suspend Your Savings Plan
Putting part of your pay into your savings might be difficult if not impossible, when you are living from paycheck to paycheck. It is foolish to have a savings plan if you are avoiding debt collectors and paying your bills. Your savings account may have to take a backseat first until you become more financially stable.
- Study Your Spending Habits
To take control and repair your damaged financial situation, you need to control your spending first. Find and stop the leak. It does not matter how much you make, but if you do not plug the leak if your cash flow, it will drain sooner than you thought. There are some proven systems and softwares available to help you categorize your spending so you can make the necessary changes and adjustments. Once you see the amount of money that you spend on discretionary expenses, you will be encouraged to change your spending habits that will eventually reduce excessive spending.
- Get Rid Of Unnecessary Expenditures
Once you see where your money goes the next
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