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How to Manage Money When You Are Broke

How to Manage Money When You Are Broke

Trying to figure out how to manage money when you are broke is hard to do. Living paycheck to paycheck is no fun. Trust me, I’ve been there.  Staying up all night stressed, wondering how you are going to find the money to pay the mortgage or keep the electric company from coming to disconnect your service, even how to put food on the table.

It seems like you will never dig yourself out of the whole you are in.  Let me tell you that it is not easy but it can be done, it’s not going to be fun, but it is the only way if you want to get out of this life draining situation you are in.

You are going to have to make sacrifices and stick to your plan which is your budget. If you don’t you will never have the stress free life you are wanting so badly.  

The first thing you are going to need to do is cut out any non-essential expense. Cancel any subscriptions or services that you are trying to pay for that are not essential, go through all your bills and bank statements and cancel anything that you don’t absolutely need.  

I know it going to be hard to get rid of that Netflix subscription or get by without that expensive cell phone plan but you can add back some of these things once you get out of debt and back on you feet but not until then.

Once you have cut out any unnecessary expenses it time to create a budget.  You can do a simple budget in a notebook or create a spreadsheet.  You can also get printable budget worksheets online or download a google sheets template.  

Find what works best for your needs and is easy to maintain. This is the most important tool to keep you on track. List all your expenses first and then your income, are you able to make ends meet?  If not then you are going to have to find other ways to save on expenses, maybe find creative ways to save money on groceries, trade  your vehicle in for one with lower monthly payments or find a way to make some extra money on the side.

How to Manage Money When You Are Broke

Once you are able to make ends meet, you need to start building your emergency fund to at least $1000.00 or more. This is a must to staying on track with your budget.

 If some unexpected expense comes your way like your car breaks down or one of your appliances dies, you will have the money to take care of it without getting into more debt or derailing your budget and everything you have work so hard to do up till now.  And remember this is for real emergencies only!!

After you are able to keep up with all your essential expenses and build that emergency fund, it is time to start paying down your debt.  I personally have used the snowball debt method because you can see results sooner and it encourages you to keep going. I think that is what anyone in this situation needs. It’s to see a light at the end of the tunnel.  

Basically, you start off by throwing all you extra money on the smallest balance debt and once that is payed off you take the money you were putting on it and add that to what you are already paying on the next smallest debt and so on until you are debt free.  

You can also create a Credit Sesame account. What I like about Credit Sesame is that they give you recommendations on how you could be saving money based on your personal situation. Anything from the best credit cards to help you transfer balances that will save you money, to showing you how to refinance your car or mortgage to save tons in interest rates.  I could not recommend Credit Sesame enough, they do a great job!

The key here is to take baby steps, your situation won’t turn around in a few weeks. Don’t get discouraged, if you keep going you will eventually get to where you want to be, just keep it up!

So, I am really happy you read How to Manage Money When You Are Broke.  I hope it helps, I know how discouraging it can be, it is so hard but trust me, if you don’t take action now than this misery will just drag on.

I am here to help if need be,  you can email me personally if you want at and I will try my best to help you out.  I really believe that this is the only way to make your life better for a happier financial future

I would also love to hear your success story, if you would like to share it.  You can email me@ or leave a comment!!


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How to Manage Money When You Are Broke

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