Perspective is Key with a Struggle Budget

Where Am I Financially?

This question haunted me throughout my financial journey. At times I chose to ignore it, hoping it would disappear. It's even easier to do when your income barely meets your expenses. I've learned avoiding something doesn't make it disappear or get better. I'm here to reassure you that you're not alone. And there's no shame in finding yourself in financial straits. Many face this challenge daily. What I found to be helpful is having a clear picture of my present financial landscape.

My recommendation to do so is to take your most recent bank statement and pull out everything you purchased for the entire month. If you don't use a bank system, go based on memory or paper bills of what's due every month. Take a highlighter and highlight every expense that's essential to the function of your household/family. The remaining unhighlighted are your frill spending. These are the items that are nice to have but aren't necessary for your day-to-day life. Would a template help? Click the comment button and fill out the contact form, stating you'd like the "household" template.

I'd suggest eliminating "fill" each month. As you gain funds back into your budget, either apply them to a bill or save.

Prioritizing Must-Have Over Must-Wants

Once you've got a clear picture of your finances, it's time to prioritize your expenses: must-haves versus must-wants. Let's be honest, we can talk ourselves into making something we want a must-have! I've done it numerous times. Then years later, that must-have is sitting in my closet with the tags on it! SMH! We've already identified the must-haves, like rent, utilities, groceries, and transportation. Must-wants are those things that we strongly desire but are not essential.

Now we need to reprogram our thinking to know that THESE are the ONLY must-haves we are buying this season.

I know culturally, my ethnicity loves the finer things in life. LOL However, to stabilize your current budget and to get out of the "red," you may have to forego these items for a bit. Temporarily cutting back on your "frill" spending such as dining out, subscription services, mani-pedis, and entertainment can free up funds to cover your basic needs.

Creating a Budget

Next up is creating a realistic budget. This doesn't have to be intimidating. Start with a simple spreadsheet or a budgeting app. Categorize your income and prioritize your household expenses as identified earlier. I recommend, at the very least, to your budget weekly or even daily. Keep track of every dollar to ensure it will first go to the most critical areas.

Remember, every small saving here and there can add up to make a significant difference. Side note: there will be mishaps or you may fall off track. Please don't beat yourself up; we fall down, but we get up! LOL Get back on track and get consistent and disciplined enough that you're fully aware of your finances at any given moment. Would a template help? Click the comment button and fill out the contact form, stating you'd like the "budget" template.

Exploring Additional Income Opportunities

While you're getting used to your new budgeting discipline, finding a second job may help. Look for something that doesn't require all of your time but provides additional funds to cover any deficits. This could be a side gig, freelancing, or even selling items you no longer need. There are numerous ways to bring in some extra cash without a significant time commitment.

Don't hesitate to seek out community resources available to you. Local non-profits, food banks, and religious organizations often provide food assistance, housing support, and other essential services when you're in a bind. It's there to help, and using these resources can alleviate some of the financial burdens you're experiencing. Remember, this is a temporary situation.

Maintaining a Positive Perspective

Finally, do your best to maintain a positive perspective throughout this journey. The moment you're in is a temporary phase. I know that what I'm saying is easier said than done. Because our struggle tends to speak louder than our thoughts. However, when I look back, I realize the struggle made me a better critical thinker. I had to be creative and resourceful (not illegal) to navigate those times. So I permit you to remove the shame and stigma surrounding financial hardship. There's no shame in accepting help, asking for assistance, and saying I don't have it. You'll find it easier to focus on practical solutions and rebuild your financial stability when you maintain a healthy perspective.