The life we live is often dictated by our income. If we have a job and make money, it’s easy to afford the things we need to survive: food, shelter, and clothes.
But what happens when you become unemployed or can’t find stable employment?
What if you suddenly lose your partner, your home burns down, or something else unexpected occurs that leaves you with nothing?
There are many people who might not know how to restart their lives with no money. Read this blog post for tips on how to get back on your feet again!
How to restart your life with no money: What do I need to know first?
Before we get into the nitty-gritty of how to restart your life with no money, let’s answer some questions.
What are the basics of restarting with no money?
What’s the first thing you need to know when restarting your life with no money?
How can this horrible situation be made a little easier for you?
How can you take control of your situation?
The first thing you need to know: There are many steps to take in order to restart with no money.
This means that you need to prioritize, think about what needs to be done first, and create a plan of action.
Take your time when creating your plan of action so that you can get the most out of it!
You might be wondering: What are the basics of restarting with no money?
This is a very good question.
The basics of restarting your life with no money are to regain your financial balances, learn new ways to make an income, and get back on your feet financially. It’s all about the basics!
What’s the first thing you need to know when restarting your life with no money?
Having little or no money doesn’t mean that your life will come to a complete halt. It just means that you’ll have to make some different choices than most people typically make (like taking on another job or getting creative with your income).
You need to know that you can do it. You need to believe in yourself and your ability to take on this challenge.
If you don’t believe in yourself, who will?
You also need to know that you can make a big change. You don’t have to make a small change or go halfway because you think it’s too much. The more extreme the change the better! If your life is a mess, making a smaller change won’t solve your problems.
But if you make a bigger one and commit to it you will achieve the change you want.
Secondly, this isn’t a short-term challenge or experiment. It’s not about doing this for “a little while”.
This is your life and your choice so don’t think of it as temporary. Be aware that it’s going to be hard at times (despite what anyone tells you).
You need to have patience, determination, and endurance. You are going to face all types of challenges that will try to derail your efforts. You’ll want to give up but don’t because if you can make it through the first few weeks you will break through a barrier in your brain where all the benefits start flowing. You’ll start to feel different about yourself and your life.
But the key is you have to make a commitment. A real one. Not a fake one where you say it but don’t really believe it or live it.
This isn’t a “someday” challenge. You’ll know when you’re ready because when that time comes there won’t be any question in your mind.
When you’re ready to commit and take the challenge, all you need to do is go for it!
You won’t regret it.
How can this horrible situation be made a little easier for you?
Well, remember that the first thing you need to do is believe in yourself and take control of your life again. Your whole mindset will change once you gain confidence and get back on your feet financially.
Also, don’t be afraid to ask for help. You don’t have to do this alone! Be creative about finding a solution. If you need money, you’re going to have to work hard and get creative with your income. You might need a loan or a line of credit from the bank.
Whatever it takes, don’t be afraid to face this challenge head-on. Don’t hide behind excuses because eventually, they’ll catch up with you.
Be determined, have faith in yourself and start taking action today!
How can you take control of your situation?
Even though it may seem like you’re overwhelmed, there are a lot of things you can do to get back on your feet again.
But remember you need to prioritize what needs doing first and create a plan of action to follow.
Once you prioritize and create a plan, the next step is to get started and take some small actions towards achieving your goal. Don’t be afraid of taking small steps because they will lead to bigger ones!
Before you know it, you’ll have completed your plan and be back in control of your life again.
If you want to take control of your situation then here are two things you should do immediately:
1) Get organized. Make a list of all the tasks you need to get done and organize them starting with the most important ones first.
2) Plan your attack. Write out a plan of action that describes exactly what tasks you are going to get done, in what order.
What are the things you need to do to take control of your situation?
You have two options when it comes to taking the steps necessary to gain control over your finances again:
1) You can sit around and wait for help to come your way – but that never happens.
2) You need to be proactive and take charge!
Let’s take a look at the first step you need to take:
Step #1: Admit that you need help.
If you are reading this right now it is probably because you are having financial difficulties and are willing to admit that things are bad. You might be stuck in a cycle of debt and don’t know how you will ever pay off your bills. You might be behind on your car or home payments, and especially if you are struggling to make ends meet at the end of each month, then it is time to admit that you need help.
Your first battle is admitting that you need financial help because you will no longer be able to pay your bills and you need help to get back on track.
Now, if this is something that you only do during the holiday season and pull out of once January comes around, it’s time to stop kidding yourself. If any of this sounds familiar, then it is time to take action!
Step #2: Set up your budget.
Now that you have admitted to yourself and the world what is going on in your financial situation, it’s time to get serious about setting up a budget for yourself and sticking to it!
First off, take a look at where your money is going every month – through careful review of your bills and bank statements, it should be easy to locate where you are wasting money.
Do not be embarrassed about the things that you may find! It is perfectly normal to waste money on things like eating out, impulse buys (that unnecessary pair of shoes!), or even the lottery tickets that seem to keep popping up in your grocery cart! The important thing is that you know what you are doing and come up with ways that you can cut those expenses from your budget.
Some of the biggest money wasters that I have encountered over the years include:
- Using credit cards for day-to-day purchases
- Using vending machines as a regular source of food (and yes, I used to be guilty as charged!)
- Clipping coupons to save a few bucks here and there on grocery shopping
- Buying groceries when you’re hungry! Whether you are shopping online or in person, make sure that you complete your grocery shopping when you are not starving – it will ensure that you buy only what is necessary for a week’s worth of meals.
Now, once you have a list of items that you can cut from your budget, it is time to start putting together a new one.
Step #3: Establish a realistic monthly income.
To establish your monthly income, take a look at all of the sources of income that you have coming in each month – whether it be from wages, child support, an allowance from your parents or a trust fund, this is the money that you will need to stick to each month.
Now, take a look at all of your bills and subtract them from your income. This should be easy if you have been keeping track of where every cent has gone! If not, it’s time for a quick review!
You are now left with whatever is left over after you subtract all of your bills from your monthly income – congratulations, this money will be going directly into your pocket!
Next, divide this number by the number of weeks in a month (for example, if there are four months in the year and you live on a monthly income, divide this number by 12) and you will have a weekly income amount.
Now it’s time to calculate your monthly expenses! Take a look at all of the numbers from your monthly bills, from car insurance to groceries, from rent to utilities – then add them all up. Subtract this figure from your weekly income and voila! You have a monthly budget!
Step #4: Find ways to save money that fit into your budget.
At this point, you should still have some money left over from your weekly income after subtracting all of your bills and calculating your budget. It is time to put the excess money to good use!
Make a list of things you would like to do with this money – would you like to save up for a new car, pay off your student loans or start a college fund? Or maybe you want to buy a new wardrobe or treat yourself to an everyday Starbucks coffee! Whatever it is that you would like to use the money for, take a moment and write it down.
Now, pick one thing that you would like to do with this money and divide the weekly amount by 4. If you want to buy a new camera for $146, then that is equal to about $36 per week.
Next, stop spending your regular income on whatever it is that you have decided not to spend money on!
This may be difficult at first, but it becomes more natural over time! Soon you will be accustomed to spending your money on different things and not miss the fact that you are not buying something anymore.
When my friends ask me if I would like to go out with them or if I need anything from the store, I just tell them that I am on a budget! It saves you the time, energy and money that it would take to go out with them. Their response is usually “Oh, I forgot!”
There are many ways that you can save money while still enjoying your life. Saving money does not mean your life has to be boring! There may be times when you will want to treat yourself, but if you stick to your budget and use the money only for the things that you have written down – anything is possible!
If a wild night out with your friends means going without a new top or missing a great sale at the mall, I guarantee it will be worth it.
The next time someone tells you to go out with them or suggests that you go spend some money, just tell them that you are on a budget and watch their face turn from excitement to shock. I bet they will never ask again!
“But what about going out with my boyfriend/friends?” Why can’t I use the money for something special? Well, this is a very easy fix. If you are feeling guilty, just give them a portion of your allowance to use for whatever they would like. They will be happy enough with five dollars to spend on beer, without you spending twenty to buy them dinner!
What are some ways that you have found to save money? What are some things that work for you? What kind of budget do you have?
Now that you have a firm understanding of how to create a budget, it’s time to start putting this knowledge into practice!
Step #5: Create a budget and stick to it!
Take a look at the list that you wrote on your “Things I would like to do with my money” paper.
If one of those things is paying off debt, then take some time at the end of each week or month depending on when your bills are due, and pay them down.
Use the money from your allowance to make extra payments toward bills and other expenses.
Watch as you start to see a dent in what is owed!
If saving money is one of the things on that list, then every time you get some extra money put it into a savings account!
If you do not have a bank account, open one at a local bank near you. Having a bank account is necessary if you want to start saving money.
Every week or month, depending on when your bills are due, take a portion of that extra money and put it into a savings account.
The amount that you save is up to you! If your goal is to have enough money saved up for a new car in five years, then take a portion of your allowance and put it into a savings account.
Every week you will save the same amount from your allowance until you reach your goal!
The possibilities are endless as to what you can use that money for. Maybe you would like to buy a new purse or wallet! No matter what it is that you choose to use the savings for, I am sure it will be an investment worth making!
It is very easy to start living on a budget. There may be times where you slip up and spend money that you had not meant to, but as long as you can recognize what happened and do better next time – nothing is impossible!
Make a promise to yourself that once you become financially stable enough to not worry about money every day, you will treat yourself. You deserve it!
So there you have it – five easy steps to create a budget and stick with it! It will take some time for this process to become second nature, but in the end, I promise that it will be worth it. You will be financially stable and able to enjoy life, all while saving money – what’s not to love about that?
Now that you have a better understanding of how to create a budget, try creating one yourself!
Don’t let the process stop just because I told you what to do. Take some time out of your day and plan what you would like to do with your allowance. Use the list that we created of “Things I would like to do with my money” as a guide!