If you are having financial trouble and cannot pay all your bills, you might be feeling overwhelmed.
The truth of the matter is that you are not alone. A lot of Americans are trying to balance between paying student loan debts, car loans, saving for retirement and creating savings.
When unpaid bills start to pile up, take a breather and then take action. It is never too late to reverse your path financially.
Here’s how to prioritize your needs when you cannot pay all your bills.
1. You MUST Lower Your Expenses
Now is the time to go truly through your spending line by line. Trust us. The process of going through your spending is beneficial in more ways than one.
First, it lets you know where your money is going instead of wondering where it went.
Second, it lets you be in charge and gives you a real sense of control as to how to proceed.
Setting Up Your PB&J Budget
A lot of people hate the word budget. I get it. Budgets are often thought of as complex and restraining. I am here to tell you that is not the case.
Find out how to create a simple budget that works in four easy steps.
When creating your PB&J budget, think about the essential items. This is:
- Housing
- Food
- Transportation
- Utilities
Everything else is essentially an add on.
Calculate how much it costs you each month to keep these essentials going. Once you have this number, work to eliminate unnecessary categories in your budget and focus on how you can bring this PB&J number down.
Perhaps you can add in more budget recipes to your weekly meal plan. Maybe you can even cut on your transportation cost by finding a better way to commute around your city (AC – After Covid).
I’ve Done That, What’s Next?
You have cut the cable. You have stopped your Target runs. Heck, you even stopped your subscription to Amazon Prime AND Netflix. Essentially, you have reduced your expenses as low as possible, but you still need help covering the bills.
Here’s what to do next.
2. Seek Out Additional Help To Pay Your bills
Programs exist to help out individuals in need. This is a time of need. If you cannot pay your bills, there is hope.
Seek out tried and true resources such as:
The local food bank (pro tip: type in your zip code and “food bank” to find what is closest to you.
Check out the Women, Infants and Children program. This program provides food assistance to those in need and is available in all 50 states.
Apply for unemployment benefits in your state: This program has been expanded to include funding for an additional $600 per week to individuals. Check your state’s website to see how to best proceed.
Need help with your electric bill? Try out the Low Income Home Energy Assistance Program for help with utilities.
Self Employed? Apply for these grants and programs to get back on track.
We are admittedly in scary times, but that does not mean that we are hopeless. Seek out one of these resources today to help you re-set in this time of need.
3. Use Your Resources – Credit Cards & Loans – to your advantage
Look at ALL your options.
This means looking at whatever available credit you may have or looking at companies with low introductory offers.
How To Use Your Credit Card Responsibly
For example, maybe you can get a credit card with a low or 0% introductory period. This would serve as an emergency source of funds to help you stretch out your dollar.
The key here is to use the credit card responsibly to cover one of your four needs. Keep your spending in check by using the simple 50/30/20 method to easily balance your needs and wants.
4. Seek Out An Additional Job
This will depend on your availability and the structure of your household. If you are the primary breadwinner in your home and also have children to look after, this won’t be the best option.
For those with the flexibility in their schedules to get another job, try your hand at customer service. There are some companies hiring right now to fill the needs of our communities for jobs such as packers, delivery drivers, etc.
You could try your hand at working at one of these customer service job. You can also try your hand at finding a remote job to do from the comfort of your home.
Another place to find freelance work opportunities is on Upwork and Fivver.
Will This Work For Me?
Everyone has a skill. I believe this is true no matter your age or background.
Use your skills to bring yourself additional income. This may be something as low cost as becoming a seller on Etsy. Give yourself the space and opportunity to try something new. You might also even find that you enjoy this work more than your 9-5.
If you have any questions or need additional help getting started, send us an email via our about page and we will answer it directly.