Got No Dough - Saving Money in Slim Times

I read a lot of blogs each day about reducing debt and saving money. What do you do though when you don’t even have enough money to pay your bills or buy groceries, let alone pay down your debt? You have to go into financial crisis mode.

Here’s an example of financial crisis:

Checking Account Balance: -$122.81
Savings Account Balance: $3.19
Next Payday: $400 on 11/30

Rent: $945 - Due 12/1/07
Electricity: $59.31 - Past due 1 month
Gas: $56.79 - Past due 2 months
Cell Phone: $308.01 - Past due 2 months
Cable & Internet: $165.49 - Past due 2 months
Car Payment: $191.22 - Due 12/14/07
Auto Insurance: $118.00 - Due 12/1/07

Credit Card Debt: $15,000 - all past due 3-6 months

Pretty bleak picture, don’t you think? Truth be told, it’s what me and my family are up against. Here are some basic strategies for surviving when times are hard.

1. Immediately cut out any unnecessary expenses. There are a lot of things that most people will overlook, so here is a list to get you started:
   • Cancel all newspapers and magazines
   • Cancel any gym memberships
   • If you have a cell phone, consider canceling home phone service
   • Keep a bare bones cell phone package
   • Do not eat out - this includes drinks
   • Cancel home internet service and use a public hotspot
   • Cut your hair at home
   • Only buy the necessities at the grocery store and make cheap meals
2. See if you can qualify for any kind of public assistance. Whether it’s cash aid to help you pay your bills or a food stamp program to help with groceries, if you need it, then you should use it. There can be a huge pride issue with this one, but think of your family and their needs. This does not have to be a long term solution and maybe you’ll only need it for a month or two.
3. Find sources of additional income. In addition to our jobs, here are some other ways I’ve made extra money over the past month:
   • eBay - you can sell old clothing, books, or things in your garage. Keep the items small because otherwise shipping will cost a fortune.
   • Craigslist - for the items too large to sell on eBay, I’ve sold on my local Craigslist page. Most recently we sold a baby gate and our baby swing.
   • Part time work - many companies are looking for part time workers now that the holidays are here. Check the mall for retail jobs or maybe a local restaurant for a night time waitressing position.

Above all else, stay positive.  I am not seeing a light at the end of the tunnel right now, but that doesn’t stop me from continuing to put one foot in front of the other.  Make sure that when your expenses are more than your income that you put priorities on your expenditures.  Food and shelter should be at the top of that list and everything else comes after.  Continue making cuts until you are at least breaking even each month.  Then, from there, you can continue making changes until you are coming out ahead each month and can follow the debt reduction plans that others talk about.