No matter how well off you think you are, it doesn’t take much for things to get very different. You could lose your job, or have an accident that stops you from working. The firm you work for could go bust, or you could be the victim of an untraceable crime. So, if any of these situations arise, how are you going to deal with them? Today, we’re going to look into what you need to do when you’re almost out of money.
Your first step is to stop spending and take stock of your current position. Check your bank balance, savings accounts, and even down the back of the coach. You’ll need to pull everything you have together, and then work out what you need to spend it on. Do you have bills coming up, or is your mortgage payment due?
Prioritize everything in order and make sure everything that can cause you serious damage. Your home loan payment, for example, is right at the top. That should be followed by your utilities, child support, tax payments you owe and then your insurance. Your car payments should be next, followed by any secured loans and student loans. Everything else? Forget about it for the time being.
Most of what we listed there can be put off for a little while, as long as you explain your situation to the organizations that you owe. Let’s assume that you owe a lot of tax – the IRS will happily give you a repayment schedule that you can afford over time. Mortgage companies may be able to help you reduce your payments on a temporary basis. Perhaps you could swap your mortgage to an interest-only loan?
The key is to contact them – and if you don’t, you will just be burying your head in the sand. While not everyone will cut you some slack, most will, and that can help you get out of your current situation. Right now, you need some breathing space – and you won’t get it without getting in touch with your creditors.
Cut inessentials and raise money
We all have paid out for a lot of things we don’t really need, so have a look at your spending. For example, the average monthly bill for a smartphone is around $150 per month, so get rid of it if you can. Look into your eligibility for free government phones instead. Think about your cable TV, too. Maybe that expensive package can go on hold for a while.
Next, you have to get your hands on more money. You should split your time between trying to get a new job, or creating those opportunities yourself until you do. Wash your neighbor’s windows, set up a dog-walking service. Sell some of your old possessions on eBay or at a yard sale. Getting a job is important in the long-term, but you have to have money to live – so do all you can.
Running out of money is no joke, and it can seem like the whole world has conspired against you. But there is a way out – and we hope this has helped.