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We’ve all been there! We want to pay our credit card in full but somehow there’s never enough money so we end up carrying a balance that just seems to grow and grow. You want to pay off student loans, but somehow, there’s never enough money to pay more than the minimum! Yes, we’ve listened to the gurus, we’ve created the budget… but somehow, we can’t get any traction! The numbers don’t add up, the grocery bill is way over than what we thought it was and we realize that we don’t make enough money to pay the minimums on every bill, car loan, rent or mortgage and eat… Panic! What the f* are we going to do? How did we get here?!
So, how to budget when there’s too much month at the end of the money?
First of all, I hear you and you can get out of this situation. The simple fact that I’m saying this is getting on your nerves, I get it! I remember being in that situation, (you know, the one that led me to lose my house and clean houses for a living) and thinking there was nothing I could do to change my situation. I was wrong and that’s why I KNOW that you can do this!
One thing is cutting the coffees and not buying clothes, but what if you have already given up on that a long time ago and are just trying to put food on the table? That’s what no one talks about. That’s what’s frustrating, not knowing where to go from here.
Now, let’s get practical!
Get out a sheet of paper, write out four lines, housing – that’s rent or mortgage, utilities – that’s electricity, water, food – groceries only!, and transportation – that’s gas and car loan, insurance. These are what’s called your four walls, your must haves no matter what. The things you need to survive, you and your family. These are the first things that have to come out of the income that you have. So write the totals down and make sure you have enough money coming in for those bare bones of your budget, if you will.
Once you’ve established that these four basics are covered you go on to paying credit card bills, personal loans, whatever other financial commitments you have. Write down a detailed list of all the loans and credit cards that you have and write the amount of the payment, then list them from smallest to largest. If you have enough money to make the monthly payments, AWESOME!
Creating a new future starts in this step!
If you have some money left, you can throw it at the smallest debt and pay it off quicker so that you can take back a little bit of control over your own money! But what if you don’t? What if you can’t make those payments without constantly borrowing from another card or a family member?
When I was in this situation, I had two options, work more to earn more and be grateful for what I had. Let’s face it, earning more is not always an option, maybe you have small kids, you or/and your spouse are already working day and night, you can’t find a job… the list is endless. It really seems impossible to earn more money when there’s not enough! So why would you even feel grateful?! I know I’m really getting on your nerves now… but let me just say this. It’s so easy to forget to be grateful for what we have when it’s never enough, but that’s also what’s going to make the biggest difference in getting you out of this financial situation!
You are the secret to your success.
It’s not until you understand why you behave with money the way you do, the way you spend it, the way you see it, that you will fully commit to changing your financial situation forever. You might remember me telling you about the time we were trying to get out of debt and we emigrated to get better paying work and then we got a loan to buy a car… yep! Well, shortly we defaulted on that car payment and I saw myself back in that place where I lost my house and the cars… Something had to change! That’s the day I committed to being grateful and to stop thinking of myself as the victim. And that saved me, my marriage and got me to where I am today.
Knowledge is power! Stop burying your head in the sand like I did for so long!
Once I started to really look inside and see why I was stuck in that moment, where I kept faulting payments and losing things, everything changed. It became easier for me to say no to myself without resentment. I knew why I had to say no, we can do hard things for a short period of time, I promise! And somehow, without working more (there were no more hours in the day!) I started to see progress in paying off the debt. I was happier and I felt empowered!
So, before you panic (even more), start working on your thoughts, our mind is very powerful and if we put as much energy into positive thoughts as we put into negative ones, our life would be so much better! And that I know for sure!
It’s your turn!
If you are serious about taking control of your life and your money I have a great programme that can help you. As a Money Mindset Coach, I can guide you through techniques to manage your stress, reframe your thoughts, and create a positive relationship with money. And that’s why I created a much more affordable option, a digital course that will get you to the other side of this financial fog you are living in right now. It’s the exact steps I took when I was in that same fog and that took me years to see clear skies again. I want you to see those skies clear a lot sooner and in 21 Days you will! If you want to check it out, click here and it will take you straight there!
You got this!
Remember, you can do this on your own, use the resources I provide as well as other resources you can find for free on the internet. They are good and they work. But if you need a little more structure and accountability then here for example, they have amazing personal finance courses that you might like. I might not be the right person to take you on this journey but if I can inspire you to find someone who is, my work is done! I know what it’s like to hit rock bottom financially and I don’t wish that on anyone. I hope you got what you came looking for today!
