I’m Broke, Now What?
No savings, living paycheck to paycheck and have no extra money
Are you living paycheck to paycheck? Do you have a job that has an uncertain paycheck like, being a server for example? Has your income taken a significant hit because you recently lost your job, or you or your loved one lost their job due to a major medical illness or have been unexpectedly laid off? Does the advice to rely on your “3–6 months of savings” not apply to you because you don’t even have any savings? If so, this post is for you. In this post I’ll share 4 crucial actions you can take immediately to survive during this time of hardship to help to keep you and your family afloat while you figure out a more long-term solution.
About 2 years ago, my then boyfriend now fiancé was unexpectedly hospitalized at the time for an unknown medical condition that contributed to him ultimately resigning from his job. I at that time back in 2022 was working only as a server making anywhere from $10-$20 an hour in tips alone on any given 40 hour work week. Neither of us had any savings or monies stashed away somewhere to rely on and we had 5 four-legged family members to also take care of. Things felt really scary and anxiety inducing 99.99% of the time. We had to figure things out as we went as our family and friends were also going through their own tough times too.
1. Write Out ALL Expenses
Key Outcome: Know your Non-Negotiable Expenses
First crucial and most important thing to do is to sit down with pen and paper to write down EVERYTHING for your expenses if you’ve not done this already. If you’ve already done this, feel free to skip onto the next point. If you’ve not done this yet keep reading.
Everything? Yes! I’m talking like not just your rent/mortgage and utilities but, jot down too what your gas expenses for transportation or public transportation are, what your groceries and eating out expenses are, what your streaming services are, any expenses you typically might not think about like, your obsession with Dunkin every morning (oh, was that just me?), and any other miscellaneous expenses like prescriptions, credit cards and loan debt, clothing shopping, entertainment like going to concerts or festivals, just everything. Why is this important? It gives you a big picture view of where your money has gone every month. This is a great time to evaluate what I like to call are your non-negotiable expenses. What are these non-negotiable expenses that you can’t live without at all, you can’t survive without them? For me and my fiancé those non-negotiable expenses were as follows: rent, prescriptions, electricity, phone bill, internet, credit card payments, and 1 streaming service, Amazon Prime. Any other expenses stopped immediately. Everyone’s non-negotiable is going to look different for what you need and want. Mine is just an example.
2. Find Resources Needed to Survive
Key Outcome: Finding Practical Strategies and Resources When Food and Bills Can’t Be Paid
Making payment arrangements and applying for hardship assistance
Remember that list of all your expenses you made? Have that out and see what your income is now. What bills and credit card payments can you absolutely pay? Pay those and any utility bills or credit card payments then, any other utilities or bill payments such as the electricity or the water bill can be looked at strategically, for example. Not many people know this but, most utility and credit card companies have hardship programs or payment arrangements for situations like this. Call them. I know it will most likely be the last thing you want to do. And maybe you might feel upset and embarrassed. Lean into it, acknowledge it, then give yourself some love and grace. This could’ve happened to anybody. Don’t let anyone tell you it’s stupid or shameful to ask for help. I know those feels for sure. For over a year and a half I had to call the different companies to let them know I couldn’t pay that month or that I needed help. Most companies want to help and work with you. Make sure you call them stat when you realize that bill can’t be paid. The worst thing is they could say no. You wouldn’t be any worse off than you already were. So just give them a call. You’d be surprised!
Finding resources for free money, food, and rent/mortgage assistance
Next, if the utility companies can’t help or you’ve exhausted your payment arrangements with them or maybe you don’t have enough money for food and you’ve no idea where your next meal is coming from. Check out http://www.findhelp.org. This website saved our lives time and time again. From this site we found rental assistance for 6 months from the federal government and groceries! Simply type in your zip code and you’ll see pop up several categories such as food, housing, utility bill payment assistance, transportation help even! This website exists as a directory for federal, state, local level financial assistance for families and individuals in need. If you’re going to surf on the web looking for anything to help, this is the website you want to spend your time on. From this website, we became connected to our local city food bank and had free groceries we could pick up 2X a month!
Also, if you’re on social media such as Facebook or Nextdoor, check out Facebook groups and Nextdoor posts offering to help locals in need. Here in Delaware where my fiance and I live, there are a few Facebook groups who greatly assisted us with food assistance, gas monies, even a couple of tires since the tires on my car were really rotted out from wear and tear of DoorDashing! Again, remember it’s never a weakness to ask for help.
You don’t have to give up your pets!
If you’re really low on your resources don’t fret! Instead, check out your local animal shelters. There are a number of animal shelters who have programs set up to assist families in need with pets to help with dog or cat food and litter. I’m so thankful to the local animal shelter here that has a hardship program dispensing cat and dog food and cat litter monthly to people in need! They even have a senior citizen program where those pet supplies are delivered to their door if necessary!
Tough Talks with Your Boss
If you feel comfortable and/or this tough situation you’re in is affecting your job performance, it’s a good idea to have a meeting with your boss to discuss what you’re going through in your personal life. This is helpful (in some cases) to share what you’re going through and what your needs are at this time. You’d be surprised by what assistance could potentially be had by your employer depending on where you work. Me, I was primarily a server at a few different restaurants and my manager at one of those restaurants was so kind and gave us free groceries straight from the walk-in fridge to help me and my fiance have food in between waiting for the approval on the food bank and my paycheck! Shout out to James of Lucky’s Coffeeshop for helping us! You never know until you have these crucial conversations.
Real Talk
What’s the catch with these resources? I’ll be real with you, most of the federal and state resources I’ve shared with you above want you to fill out so much paperwork and follow up and make phone calls. Sometimes, you’ll hear, “Oh, we didn’t receive xyz paperwork you’ll have to fill this out again…” or “You’re not approved because you make $3 over the financial need threshold.” You’ll want to throw in the towel again and again. I won’t sugarcoat it. At times it’ll feel frustrating. And, while there are people willing and agencies who want to help, there are some who think anybody asking for help is just lazy. Let the haters hate and you focus on providing how you can for you and your family. Remember, you’ll not always be stuck in this place of crisis and uncertainty.
3. Create Extra Income
Key Outcome: Finding ways to supplement your primary income with extra cash to fill in any gaps for bills and groceries
This won’t apply to all readers and I get that. We all have different abilities and disabilities and time-constraints. I totally understand that. And, I know this point is something that is greatly talked about so I’m going to be brief.
Check out all those side hustles you can do in your spare time or in between your full-time job and caring for your family. I’m talking DoorDash, Instacart, Rover dog walking etc etc. while you might not make enough to quit your full time job, these do help in a pinch (most of the time). I personally was a dasher for DoorDash and was able to use the money I earned to purchase groceries and put my earnings towards rent and bills. Caution, depending on how much money you make with these side hustles, typically $600 or more made in a year will warrant you file your taxes as a self-employed worker and have been paying quarterly taxes. Just something to keep in mind so you don’t accidentally create another financial crisis the next year at tax time.
4. Carve Out You Time and Quality Time with Your Significant Other/Family
Key Outcome: Clear and honest communication about both of your needs and wants personally will strengthen your bond and protect your relationships from fear, anxiety, burnout, and anger/distancing
If you’re the spouse who has to shoulder a lot of the financial responsibility and childcare if you’ve children, know you’re significant other needs you to be strong and lovingly honest. Don’t do what I did at first when our crisis hit. I believed I had to be strong for us by shouldering everything all alone by myself- that included me not sharing my fears and anxiety. While your loved one might be hospitalized or laid off, in most instances they’re not incapable of helping some way. Working together as a team is what’s healthy and needed during this time more than ever. Going it alone and putting on a happy face the entire time is not being strong for your loved ones. That’s what’s called faking it till you make it. And honey, who do we know that’s made it by faking it and isn’t alone now? Let your loved ones in. Talk about it with your children what’s happening but also what you’re both doing about it and that things will not always be this way. Show them you’re human and how much you love them.
You also have to carve out time for just yourself too. I know, I wasn’t a believer in the whole “self-care” bubble bath movement myself. Who has money for bubbles anyway when you can’t pay your phone bill or that ham you really wanted to bring home for dinner instead of that can of low sodium Spam from the food pantry??? Let me tell you though, it’s not about bubble baths or wine after dinner. Here’s what it can realistically look like: Coming home from work with a long list of bill companies to call and paper forms to fill out for assistance and setting those things aside to spend 5 minutes or so in the bathroom just allowing yourself to breathe and exist. Does that sound stupid? I know, it does sound stupid but believe me, taking time and doing something as simple as that to clear your mind and shed that panic you’ve felt all day about all the stuff and tasks you gotta do will do you and your family wonders. Taking just 5 minutes to sit in a quiet place like that bathroom and simply exist and sit with any emotions you’re having without judgement and just be helps people to have better focus, concentration, lowered anxiety, and better empathy with self and others. You owe it to yourself and your family to care for you so that you can keep going for them during this time. This is just one example of many things you can do to take care of your mental and emotional health when in a crisis. Don’t neglect yourself! I promise you won’t regret it.
Wrapping It All Up
There you have it! Those are my 4 crucial actions you need to take to survive during a financial crisis: Write out your expenses, strategically choose what to pay while you find your free help resources, and care for yourself and your relationships. Sounds simple but is challenging. You’re worth it. Your family is worth it. You won’t be stuck in this crisis forever.
If you found any of this information helpful please let me know in the comments below!
And, if you’d like, please buy me a cup of hot matcha tea to help support me and my writing. I write to share my experiences and where to find cheap/free resources to access basic living necessities and hacks on making it in these tough financial times. Every cup of matcha tea helps me concentrate while I type away on my laptop ;)
