When you experience a cash shortage, you find yourself limited in many respects. You quickly learn the difference between essentials and luxuries. While a cash shortage may not last forever, you must manage the situation before you face major consequences like delinquency, collections, ruined credit or even foreclosure. If you plan appropriately and make the necessary sacrifices, you will be able to see your family through the lean times. This experience will give you the confidence that you can cope if you ever find yourself in that situation again.
Write down all your monthly expenditures. Include both necessities and luxuries.
Eliminate unnecessary expenditures. Examples include paid cable channels, weekly manicures and dining out.
Reduce expenses for items you need to retain. For example, sign up for a less expensive phone plan, use regular gas as opposed to premium and buy less expensive generic versions of household items.
Set a budget and stick to it. Make sure to allot enough to cover necessities, but try not to deviate from the plan.
Allot a small percentage of your income toward savings. Try to maintain a set balance of $1,000, for example. Don't let it dip below that amount except in the event of an emergency.
Find ways to make extra cash. For example, sell unwanted items at yard sales, on eBay or Craigslist. Find freelance work. Sell pictures to stock photo sites. Take surveys online. If you have time, consider a part-time job during your off-hours.
- Comstock/Comstock/Getty Images