Guide To Managing Your Finances When You Are Broke
April 27, 2022 | Louis Tully
Managing your finances is no easy task if you are broke. Because you have so little to work with, it can feel like you are suffocating from your bills and spending habits. Although it certainly is difficult managing your finances when broke, it is not impossible.
Here are some ways to manage your finances, even when you don’t have much in the bank:
Tips For Managing Your Finances (Even If You're Struggling)
Figure Out Your Budget
The first thing you need to do when managing your finances is to figure out your budget. Not having a budget can actually contribute to your financial troubles. The budget truly is the most important part of your financial health.
When creating your budget, think about how much you are earning, the expenses you have to pay, and how much you are spending on non-necessary items. Theoretically, you should be aiming to spend about 50% of your income on necessities, 30% on non-necessities, and 20% on savings.
It may be helpful to track your spending and income for a week just to see how much you average on your budget. From there, adjust your budget to fit your income.
Whenever you are designing your budget and managing your money, make sure to prioritize your bills. Paying for the necessary items is much more important than having a new cell phone or fancy purse. The necessities are the things you cannot live without.
Obvious necessities include rent, utilities, food, gas, and medicine. Credit is also necessary since you have to pay by the due date. Anything that does not help you live and survive is a non-necessity. Only once you have all of the bills and necessities covered can you spend money on things you don’t need.
Often when people are broke, they forget to save. Saving is key to managing your finances when you are broke. It will help you build wealth so that you have future spending money. Even if you can only save 5% of every paycheck, it’s better than nothing.
Once you figure out your budget, prioritize your bills, save, and continue reviewing your spending habits. Perhaps the original budget you made is not realistic to your lifestyle and needs. In contrast, you might not be sticking to your budget. In either case, reviewing your spending habits will help you stay on track in managing your finances.
Earn Extra Cash
In some cases, it is impossible to pay off your necessary bills, let alone save or spend on non-necessary items. If this sounds like you, you will need to earn some extra cash. Earning extra cash will help to build your income so you can cover necessities or have extra spending money.
There are many ways you can earn extra cash. You can seek a second job or have a side hustle. Some popular side hustles include delivering food, freelancing, and selling crafts online. You can also sell any old items that are filling up your closet and wasting space. Many of these can even be done from the comfort of your home.
No matter what your side hustle is, try to use that money as wisely as possible. If you were already having financial problems, there is no point in making extra money only to spend it irresponsibly. Instead, put it into your budget so you can use it to your advantage.
About Auto Registration Loans
When it rains, it pours, or so they say. If you find yourself in an emergency situation when you are broke, you might feel like you have no way to pay for the emergency. Even if you’ve been working on managing your finances, you might not be at that place of financial freedom where you can handle the situation effectively.
In cases such as this, you might want to consider an auto registration loan. An auto registration loan can get you up to $1500 by using your registration as collateral. All you will need is an Arizona driver’s license, a motor vehicle registration in your name, an active checking account in your name, and a Social Security number.
Auto registration loans can help you out in an emergency. They also are an option if you do not have a title to qualify for title loans.
Apply For An Auto Registration Loan Today!
By following the tips above, you can begin managing your finances like a pro, even when you are broke. Remember, start with your budget, and continue working from there. Don’t be afraid to adjust your budget and plans if you find they aren’t working.
In the case that you find yourself in an emergency situation in the meantime, apply for auto registration loans from Southwest Title Loans. To apply, head over to our home page and fill out our inquiry form. We look forward to speaking with you soon!
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.