How to Prioritize Your Bills When the Budget is Tight

Bills. Everyone has them, everyone has seen them accumulate quickly and nine times out of ten, everyone would love to pay them off as soon as they are received but sometimes it just cannot be done. This situation is completely understandable and many people find themselves torn over which bills should be paid before others or what the best way to handle this particular situation would be. Perhaps you are more diligent in saving and paying bills on time but what if an unexpected emergency came up that made you tap into the savings that you had put away? Sometimes, things happen. Learning how to prioritize your bills may not only relieve some emotional and mental stress, it may very well allow you to create a different budget and help you stay on track financially.

Groceries

People have to eat right? Unfortunately, people tend to underestimate the amount of food costs and either over buy/over spend or find themselves without at month’s end. First, put money aside for your food – you are always going to need it! You may want to start averaging out what you purchase weekly or bi-weekly, so you can get a better grasp on how much you are going to spend over the course of a month. Generally people buy the same type of foods when they go shopping so it is worth taking a couple weeks to see how much you spend ‘regularly’ without any restrictions.

Household Items

Another necessity that needs to be budgeted for is items such as toothpaste and toilet paper. Everyone is going to need some laundry detergent, dish soap and so forth – these items add up quickly as well. Fortunately here, these particular items do last a lot longer than groceries but cannot be forgotten expenses.

House Note

You need to maintain a roof over your head. Rent and/or mortgage payments are a necessity – along with food and popular household items, shelter is the next most important item. Maybe one lump sum is difficult for you to hand over all at once or you may find it difficult to have that much money at the end (or beginning) of the month. A quick conversation with the property owner or mortgage lender is all it takes; they may accept smaller payments throughout the month. Generally, they are most concerned about just receiving their money.

Utilities

Utilities would be the next on the list of priorities. Depending on your living situation, utility bills may vary. Some may have to pay for certain utilities such as water while others do not. These items are all directly correlated with your rental agreement or living situation. Again, payments can be made throughout the month rather than all in one lump sum.

As you can see, it is not that difficult to start prioritizing your bills when you have everything staring you in the face. If you have a vehicle, car insurance is necessary otherwise you cannot get around legally and could lose your job, then you will have no money. All things lead back to the income coming in and that cannot be taken for granted. Life is not always the easiest but there are certainly ways to help you make sense of all the craziness. Avoiding bills is not the path to choose, if you have plenty of credit card debt, take care of the essentials and call your lenders. Keeping in contact is and explaining your situation fully is very important. Lenders will be more willing to assist those who are actively trying to make their situation better. Also, one final tip, get rid of anything that you do not absolutely need that is costing you money.

Finances - 23 Jan, 2014 - No Comments