If you can’t keep up with your bills here are some things to try.
Living within Your Means Often Means Making Tough Choices
While there’s certainly a majority of people who’ve whittled away their expenses and made tough decisions, this is rarely the case. (And usually the problem!)
Your first step to keeping up with your bills is having realistic expectations of what you can afford with the income you have.
Start with housing. Housing is a HUGE expense and is one area that you simply cannot ignore. You need to downgrade your desires and live in a place that aligns with your budget. Some options are moving to a less expensive apartment, bringing in roommates or renting out your basement. One rule of thumb is that you should spend no more than 30% of your gross income on housing. (Although I think even less may be ideal.)
Once you get your housing situation under control start looking for cheaper alternatives for your other bills. Leave no brick unturned.
Take Part in No-Spend Months
“No-Spend” months have become pretty popular and are self-explanatory. To take part in a no-spend month you don’t spend on anything but the necessities. Things like housing, utilities, loan repayments, and food are all that you can spend on. Everything else is off-limits.
Save Small Amounts
When you’re trying to get ahead there’s seriously no amount of money that’s too small to save. Start with one or two dollars per week if that’s all you can afford.
If you participate in a no-spend month or manage to break a bad habit (like smoking or eating out) then add that money to savings. Also add any bonuses you get and money you may receive from a tax refund. Put every dollar in that savings account until your build up at least a few months’ worth of expenses. (Keep paying your regular bills and monthly debt obligations while saving!)
After your emergency fund is built up go back to debt pay-off.
Stay Consistent
If you stay consistent with the work you’re doing to improve your financial situation then you will make a difference. At times that difference might seem small but remember, those small movements add up to something huge with time!