Budgeting and managing money can seem so easy when there is an abundance. You become a superstar at mastering cash inflows and outflows. You know where your money is going, you are financially confident, and your money is in high heels, cat walking on the runway of fabulous!
Unfortunately, this is not everyone’s story, especially in this economy, where money seems to be in Nike running shoes instead, sprinting out the door faster than you can earn it (and if money is this tight, I am almost sure they are not Vomeros either).
Some have lost jobs, lost an income (or two), experienced lifestyle creep, and are now way too high in day-to-day operational debt. Perhaps, for you, life happened, and quickly threw you into a financial tailspin. Whatever circumstance brought you to this place, if this has become your story where you are now bitterly broke or behind on bills, it is time for action. I am here to encourage you through it.
This is when you need to plan, budget, and manage money even more. God says when you make plans, you are sowing seeds of abundance. To bounce back from this financial situation will be much like planting seeds. Realistically, it will take time to germinate, but eventually you will see fruit.
Now, let’s make a plan to get you out of this financial hole.
Make the main thing the focus.
Do not internalize your financial situation. When our backs are against the wall, we tend to become defensive and start pointing fingers. This is not one of those times. This is not the time to blame yourself, your spouse, the world, or God. It will not help. There will be plenty of time for analysis coming up in a few paragraphs. Your circumstance is not a measure of your worth, nor does it erase your kingdom identity. God is not going to abandon you or treat you like a stepchild because of financial mistakes or unfortunate circumstances. This is a teachable moment for yourself, not a death sentence for you or your marriage. Focus on the end goal (restoring your finances) and take small steps to get to that goal.
Pray.
You already knew I was going to lead with that. Prayer is key to everything. As kingdom daughters, prayer is a crucial part of our relationship with our King. Talk to Him about your financial situation. You know He is a God of SUDDENLY! He can create opportunities and show you directions that may be new to you, and make ways that give you a testimony and bring Him glory. Sometimes, He may even ask you to do something outside of your box because He Himself exists outside of the box. Moreover, He will be your peace in the midst of this financial tornado so that you can keep smiling, keep your sanity, and have a clear mind while you fix this. So, go ahead, find a quiet place and JUST PRAY.
Analyze.
Now the homework begins. This is a tough place to be financially, so take out your notebook and begin to write. Start with how you got here. What happened? Why are you so behind on your bills? How did you accumulate so much debt? When did it happen? Perhaps it was a lack of planning, a breakdown over time, or a major emergency. Whatever the reason, if you don’t want to be in this situation ever again, you have to write this all down as a starting point and a lesson learned to eliminate any future occurrence.
Own your reality.
Where are you now? Own your reality and make a list that shows:
- Who you owe
- The amount of bills you owe
- How many months/periods are outstanding
Take a minute to write it all down. It is not going to look too cute right now, but you need clarity and a true, mental, and financial picture to put the right plans in place.
Start negotiations.
You do not need another late fee knocking on your door. That will only further hurt you financially. Start calling credit card companies, banks, utility companies, whomever you owe, and make feasible, realistic payment arrangements. The aim is to get extended due dates without penalties, lower interest rates, loan reductions, and even collection items removed. Anything they can offer you is better than where you are right now. Some may be favorable, others not so much. Don’t be discouraged, every little bit counts.
Now it’s time for the budget.
A budget will be extremely crucial in getting out of this financial hole. Write down the total amount of income you have to work with each month. Now, list all your expenses and be sure to head the list with your home, meals, utilities, and transportation, as these are essentials. Everything else is secondary at this time.
Prioritize, prioritize, prioritize.
Reduce your expenses until they are fully covered by the amount of income you are working with in this season. Also, identify expenses in your budget that you can rearrange and reallocate so the most important things take priority.
Who and how much do you have to pay right now? Are there expenses that require a lump sum payment? Are there expenses you could perhaps reallocate over a longer period of time so the monthly amount is lower and more manageable?
Prioritizing your expenses will help you now, but it also helps to build financial stamina as you learn to master this important money habit.
Cut, cut, cut.
You are already on bare bones, so cutting expenses is almost a joke, but there may be more things that you can eliminate. Maybe get rid of Netflix? That $20 can get you a few more items in your grocery box, which leads to fewer dollars on eating out. Your night out will just have to be home with popcorn and nachos rather than going to the movies or the game hub. Any amount you can eliminate frees up more money and gets you even closer to financial peace.
Avoid breaking your emergency fund.
As much as possible, see how far you can go without touching your emergency fund, but don’t think about adding to it right now. At this point, this is the emergency, and this is why you have been building it up, so you may have to pull from it to cover your life for the next few months.
If you don’t have an emergency fund, please add this to your to-do list for when you get out of this season. It is a basic necessity on your financial wellness journey. An emergency fund is an excellent strategy to help you remain financially confident during a financial crisis.
What do you have in your hand?
Maximize whatever resources you have left. If you still have a job, can you propose an increase in your salary? Ask for a salary increase, but be strategic in asking. Ask intentionally and intelligently so they can see the value in accepting your proposal for salary increase.
What talents or skills do you have that you could use to earn extra money? These days, with the internet and the phone in hand, you don’t have to look far for opportunities to earn extra income. Some may be slow and steady, but it still provides hope. Also, check your neighborhood and your church. Those may be great resources for you.
To earn more income, can you sell some of your shoe stash? How about clothes you no longer need? You can sell these on places like Poshmark, Mercari, eBay, ThredUp, Vinted, or Facebook marketplace to earn some extra cash. Look around your home and sell all that you can and put that extra cash towards these debts or outstanding bills.
Don’t give up on tithing.
You might be tempted during this difficult time to forego returning tithes until you get back on your feet. This is a personal choice. God is not going to love you any less for not returning your tithes. However, tithing has been an act of worship for me. We praise Him in good times and bad times, right? So, returning tithes should not be dependent on whether we have little or much. Instead, give with a cheerful heart, and with the assurance that your God is Jehovah Jireh, the Great Provider. Let me also throw in that for me, when I don’t return my tithes, my finances get worse.
Don’t give up on yourself.
Remember who you are and whose you are. If you are not financially diligent, this can change. Ask God to help you. He will help you get through this, but you have to put in the work so that your faith can remain active during this difficult time. Utilize the resources on this platform to help you with financial confidence.
Finally, don’t give up, even if it seems it is taking longer than you anticipated. The Lord shall supply all your needs according to His riches. You are His daughter, so talk to Him about your financial situation and ask for His help as you rebuild your finances.