So many people are trying to stretch their money to make ends meet. It is not only the minimum wage earners. I am seeing so many people who make six figures a year having the same issues. It is especially hard for people who are single and only have one income or seniors who are living on a fixed income. Prices just keep going up and eventually the money does not stretch any more.
Many have tried to get better jobs and have sent out hundreds of job applications with no response to any of them. Others have taken on a part time job along with their full time jobs. Many can’t even find part time jobs in their areas. Companies just aren’t hiring because their expenses have gone up also. This time of year you could always pick up a part time Christmas job. Not any more! The companies are trying to stay afloat too by downsizing their budgets.
People have not gotten raises for years now. If they have, they have been minimal and don’t even come close to keeping up with inflation. I know seniors have gone quite a few years over the past 15-20 without a raise. The January raises they do get do not keep up with inflation. Everytime you get that raise, your medicare cost goes up too. So if that is your only source of income in retirement, you are having a very rough time right now.
So what is important to pay when you are in any of these situations that I have mentioned. Your first priority is your mortgage or rent. You need a roof over your head or you will be homeless and living in your car. Food is your second priority. If you can’t afford it, go to the food banks. Hundreds of thousands of people are doing that right now. Many have incomes over $ 100,000. a year. Most food banks are not income based. You may not get food that is your favorite but it will sustain you.
If you still have money for food, buy the cheapest. Beef is out unless you can get it reduced for quick sale. Pork, turkey(this month) and chicken are your best buys when they are on sale. Buy whole chickens and break them down yourselves instead of buying chicken breasts. I can get a whole chicken for $ 1.64 a lb. and get a lot of soup stock from it too. Beans, eggs, and peanut butter are great sources of protein. Eating breakfast for dinner a couple of times a week will save you money. Toast and eggs make a great meal. Make a soup with leftovers. Never waste food. The food you throw away is the most expensive food you have purchased.
Health insurance is always a priority especially if you are over 50. One broken bone or operation will break you for good.
Your next priority should be life saving medications. Look for coupons online to save on these. Many manufacturers of drugs will give you coupons for your prescriptions. Most pharmacies will take these coupons along with your insurance. Look into Good RX or many other savings cards to see if it is cheaper than your insurance.
I would say heat if you are in a cold climate is your next priority. You do not want to freeze to death. Some states can’t shut off your power from November 1 to April 15. These are the dates here in New York. If you have a medical condition that requires power, they can’t shut you off. I am not saying “don’t pay your power bill” because eventually you will have to catch up. But if money is really tight one month, keep those dates in mind. If you are going to be late paying it, make sure you call them and make arrangements to pay.
Do whatever you have to do to keep the power bill low. No one needs more than one light on at night in the room they are in. Use a battery powered one if you have one. Or bring a solar light in that has soaked up the sun each night. If you have a choice between cooking with electricity or natural gas, the gas is cheaper. Use your outside grill if you have a full tank of propane, even in the winter.
Next priority is your car insurance and car payment. Those need to be paid no matter what. You need your car for work and to get groceries, etc. You don’t need to be paying delivery charges and tips to have food delivered.
Gasoline is your next priority. Buy it at the cheapest station which is usually B.J.’s or another warehouse club if you already have a membership. You can find your cheapest station by checking Gas Buddy.
Most importantly on all of your bills: Pay them yourselves. Do not let anyone take the money directly from your checking account unless it is absolutely necessary. If your checking account balance goes below zero, your will get a NSF charge when those bills hit. Then you will start a cycle that will never end. So shut off any direct payment that you can ASAP! Go! Do it now!
I know you won’t want to hear it but you know I am going to say it anyhow. Here are the things you do not need to be buying until you dig yourself out of this hole:
Do not buy fast food or eat out in a restaurant. No coffee while you are out and about unless you make it yourself and bring it. No costly entertainment like movies or streaming services. No cable tv. Get a Roku and watch You Tube or free streaming services. Do not buy junk food at the grocery store: no snacks, beer, liquor, or soda. Bake cookies, muffns or quick breads from scratch. Eat cheese and crackers. Hard boiled eggs are a great snack. No clothing or shoes unless yours are so worn out that you can’t wear them. I mean threadbare!
Your first priority when you dig yourself out of the hole you are in is to build an emergency fund and some savings so that you never end up like this again.
I really hope this helps someone. Please add anything that I haven’t thought of in the comments so that you can help these people too!
