Money management is not one of my strong points. Coping with being flat broke unfortunately is. Over the years I have learned to budget carefully and am working on no longer being flat broke. In the interim, I have learned some fantastic ways to cope with the situation of too much month and not enough money.
Budget. Set a budget and keep to it. Keep track of each and every penny you spend. Are you going out to coffee every day? Invest in a coffee pot and a travel mug. The savings will pay for the coffee pot within a one to two week period. Now go and apply that extra money to your debt.
Whenever possible, walk where you are going instead of driving. You will save on gas, maintenance on your car and you will be healthier for the exercise.
Pay your bills on time. Over time interest on credit cards can add up creating an impossible situation. If at all possible pay more than the amount due on your credit cards and do not continue to use said credit cards until they are paid off. If you have to, cut them in half and put them away. If you cannot afford to pay the minimum payment, then pay as much as you possibly can and contact the company to make further payment arrangements.
Use only cash when shopping. When the money is gone, you are done.
Plan out your menu's a week or so in advance. Be sure to take advantage of any sales at your favorite market. If you have the time combine the sale items with coupons and stock up as much as possible on your budget when your favorite foods are on sale. Go through your cupboards periodically and see what you have in those cans on the very back of the shelf. Can you incorporate those into a meal? Don't let them go to waste. If you don't like baked beans, take them to the next church potluck and let your church friends have them. You will have contributed to the potluck and cleaned out your cupboard at the same time.
Shop for clothing only at 2nd hand stores or yard sales. Have a clothing swap with similar sized friends. If you all go through your closets and take out say 5 items then get together at one of your homes you can have a great time trading those outfits you are tired of and enjoying your friendship. If you are handy with a sewing machine you can also sew outfits or remake some from other items you no longer wear.
Have yard/garage sales in the spring and summer months. Weed out all of that excess in your home and get rid of it. You will no longer need to clean or maintain it and it won't be taking up valuable space in your home. Apply the proceeds to paying off your debt.
For inexpensive entertainment swap movies with friends and/or borrow them from a local library. Go to the library more often and check out books to read. Play a family board game in lieu of going out to a movie or have a dinner and a movie night in by taking advantage of swapping movies with friends and family.
Be a "minimalist". You really do not need all of those fancy gadgets people have now a days. A simple cell phone will work for most people without the mp3 player and camera attached to the price.
For a birthday special give the birthday person a choice of say 2 different dinner menu's. Let the birthday person choose a movie from your collection and have a dinner and a movie night. Or you could plan a theme dinner and have the family dress up in different theme ideas. Keep it simple with only one or two gifts instead of a lot of gifts. Perhaps you have a special dinner setting you could use for the birthday person.
If you have time and enough energy work an extra part time job for a short time. Or work online at home in your off hours. Swap babysitting services with another family in a similar situation. Work alternate schedules if need be for a short time to reduce childcare costs.
Remember, you don't have to keep up with the Jones'. The truth is that the Jones' are broke too and they just don't want you to know it.
Be creative. Coping with being flat broke does not have to be depressing. At some point in most everyone's life they are flat broke. Whether its due to medical costs or a job loss, or just poor money management everyone can recover from this situation. There is hope.
