You are reading Week 5 of 52 Weeks to Eliminate Debt & Curb Spending. Please read the overview here to learn more about the series & get your FREE financial planner. If you just joined us, please start with week 1.
Sometimes, you have to sit down and accept that your income is just not sufficient to meet your needs. If you are working on getting rid of debt, then it is time to start finding income when you have none. If you’ve made goals, created a budget and attempted to make a plan to pay off debt but find yourself falling short on income, it is time to focus on making big changes. This week we are going to look at basic options for finding income when you have none.
Finding Income When You Have None:
Eliminate wants. Let’s face it, our society is spoiled. Everything from specialty coffee drinks to unlimited data plans on our phones are seemingly common place and considered “must haves”. When you are looking at debt and simply have no income to pay toward it, you must focus on what are true needs. Food, shelter and clothing on your back are your only true needs. Your obligations to your creditors are next in line.
Entertainment and frivolous expenses are wants that you can let go. This is the time to seriously crack down on everything in your life to create more income. Stop eating out. Cut or change your cable plan or limit your phone plan, so you are paying less each month. It’s time to get serious about your expenses and free income to pay debt.
Downsize your possessions. We all tend to have a bit too much. Start with big things like moving to a smaller and cheaper home, or selling your second vehicle. If those aren’t possible, then simply purge your material possessions. To get caught up on bills that are out of hand, sometimes you have to give up the designer hand bags, that shelf of video games or other items that are valuable.
Hold a yard sale or put items on craigslist that you don’t use or could live without. Put that money towards your debt.
Change jobs or add a job. Are you living on one income? It may be time to rethink that choice. It doesn’t mean you have to change it, but you may need to supplement with other options. Ask for a raise. Look for a new better job. Take on a second job on nights and weekends. Have the stay at home parent take on some minor work from home projects to earn a bit of income.
There are tons of options that are viable and can bring in more income. Sometimes they don’t happen over night, but it is worth seriously looking at so you can work diligently on getting out of debt.
It can be tough finding income when you have none. Reality is that many of us struggle paycheck to paycheck. Jobs are not easy to find, and some of us also are as bare bones with expenses as possible. However, on occasion it means you just have to refocus and have fresh eyes to remind you of your options. When debt is dragging you down, it is worth taking drastic measures to accomplish debt relief.
We will discuss specific options to help add more income to your budget in future weeks. This week is to get you thinking of changes you could make.
Week 5 Challenge:
Take a step back and examine your income. Do you have enough money coming in to pay all your bills? Do you have money left over from you must pay expenses to pay off debt? If not, look into other income sources – even if only temporarily.
Disclosure: I am not a financial adviser nor do I have formal financial training. All articles are for informational purposes only and should not be interpreted as financial advice or consultation. Please consult your account and/or financial adviser before making changes to your finances. All situations are different, so please consult a professional to determine your individual needs.