Managing Your Money When You’re Broke

Hey Money Maven!

Budgeting money is rarely easy, but it’s especially difficult when you don’t have enough of it to even pay all of your bills. It’s important to change how you spend your money when you’re so short on funds.

Follow these steps for effective money management when you’re seriously broke:

  1. Be proactive. Don’t wait until the collection agencies start calling. They are relentless and aren’t known for being understanding. They only get paid when you pay them, so you can see where their priorities lie.
  2. Prioritize. Life is all about priorities. Look at how much money you have available and then prioritize your bills accordingly. Typically, your mortgage, basic utilities, insurance and food will come first. Credit cards are usually last on the list.
  3. Cut back on your savings plan. This might be the one time to stop saving part of your paycheck. The expense and ramifications of not paying your bills might be too great to cut yourself even shorter to make your savings payment.
  4. Avoid relying on credit. When cash is short, it’s a common practice to start using credit cards to replace a paycheck. The cost of this money can be incredibly high, and this debt is difficult to eliminate later on. Don’t fall into the trap of viewing credit as a viable solution.
  5. Create more income. If you don’t have a job, take anything you can get for the time being. If you do have a job, consider adding a second job or getting some overtime. If you have stuff lying around the house that you don’t need, it might be wise to sell it.
  6. Make a new budget. This might be the last thing you’re in the mood to do, but either your financial circumstances have changed or your current budget isn’t working. Both reasons suggest that a new budget is required. Take a look at your income and bills and make some smart choices. Remember that it’s all about prioritizing intelligently.


In stressful times like these, it’s easy to succumb to your anxiety and not take action, but understand that this course of action will only make your challenges greater in the future.

Take a deep breath and do everything you can to get yourself back on track financially. You’ll be surprised how much you can accomplish when you really focus your intention and energy on solutions.

Prioritize your bills, increase your income, and make a new budget. Things will be better before you know it.


Stiletto Wealth Money Talk Meets Every 4th Thursday in the Evening!



About Shameca Tankerson

I challenge women squash self doubt, crush blocks, & gain the confidence, language, & skill to Play Big, Charge More, & Sell With POWER.

Posted on February 15, 2013, in money, Money Moxie & Financial Mojo, Personal Finance. Bookmark the permalink. 3 Comments.

  1. Hi Shameca, I hope this note finds you well! Thanks for the info below. I am wondering if you would like to be a guest speaker for my Phenomenal 40+ Woman Group? I would love to have you, and I think a session on managing money would be great for these entrepreneurs! Re-establishing a business that was only in the fledgling stage in San Diego, is a challenge for me, for sure. I try to remember everything that you have taught me and I review my notes all the time.

    Please let me know if you would be interested in participating in this tele-series. Thanks so much!

    All the best in style,

    Lynette Jones, Founder & President When Style Matters, Inc. 619.942.1045

    Visit my new blog at:

    “The more you like yourself, the better you perform in everything that you do.” — Brian Tracy

  2. Great blog sis You Rocked it and knock it out of the parkplace

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