PAYING BILLS – 4-STEP ACTION PLAN
If you’re worried you can’t pay your bills or are currently unable to pay bills, here are some tips to help boost your financial resilience.
Action Step 1: Take an inventory of what you own and what you owe using our Personal Financial Inventory. This will help you know what assets you have to keep you afloat and how best to strategize dealing with your debt.
Action Step 2: Look at what life costs your household per month. Print out last month’s transactions from your checking account and or credit cards. Track what you actually spent each month on things like groceries, fun money, heat, etc. This helps you be realistic about your costs and get creative about where you can cut.
Action Step 3: Use the Baseline Budget to prioritize Needs over Wants.
- Add up the total amount you need to cover your bases:
- Monthly Needs (household bills, gas, groceries)
- Annual Needs (car registration & any bill you pay once or twice a year, quarterly, any time interval this is not every month)
Minimum Debt payments
The total of these three numbers is what we call your Baseline Expenses – the minimum amount of money you need to not be late on essential bills.
Action Step 4: If your upcoming income is not likely cover your Baseline Expenses then use the Idea Bank to craft a break-even budget.