So you read about a spending plan, now I want to talk about dealing with the unknown.

If you are already behind on your payments, an emergency will make it worse.

When you’re already broke, everything becomes an emergency. A trip to the hospital can be $50, when you don’t have the money to pay the deductible can freak you out.

When you have money, emergencies, well don’t seem like emergencies. A nice cash buffer can keep your wheels greased, making your ride in life comfortable.

So where do I start?

Good question.

Whatever bills/expenses that are not food, gas, transportation, and utilities should take the back burner. Yes I know that is harsh, but if you try and wait to save money until you are current, you will never save money.

Prioritize your expenses now! Pay the necessities first. Everything else is secondary.

-

Example:

Take home pay $1300


Bills

Rent: $600

Utilities: $350

Food: $250

Transportation: $500

Cable $60

Internet $37.00

Credit cards $150

-

Guess what bills will not be paid?

Transportation $500
cable $60
Internet $37.00
Credit cards $150

They will have to take the back burner (next pay period)

__________________________

Did you get the point?

You cannot squeeze blood out of a turnip. You don’t have enough to pay all the bills.

Yes, I know…”if I don’t pay my credit cards with my credit score with will drop”. So what you’re broke!

“My cable bill is only $50, I can pay that first”. You have to change your thinking.

Most of us think of paying the smallest bills first, instead of the important bills first

And wonder why they are behind in utilities. That’s how most of us get out of order with bills. We look up and the cable is paid and we are behind in the rent.

So how do I get current?

Earn more income or cut out expenses. So downgrade the car, get rid of the Internet and cable.

Or you can get real radical and move to a lower price apartment!!!!

The choice is yours: keep doing what you are doing and get the same results or change your life.

Sorry I don’t have a better answer, Life is tough.