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Most budgeting advice assumes you have savings, a steady paycheck, and no overdue bills. But what if you’re already in debt? What if there’s more going out than coming in?
This guide is for you.
Here’s how to start planning your money in a way that works when things feel tight, or completely upside down.
🧩 Step 1: Know What Absolutely Needs to Get Paid
Start with what’s essential to keep life functioning, not everything you’re “supposed” to pay.
Must-pay categories:
- Housing
- Utilities
- Transportation
- Food
- Any income-related obligations (like childcare)
These come before minimum payments, subscriptions, or credit cards. It’s okay to prioritize survival over everything else right now.
🧾 Step 2: Track One Week of Spending
Not a whole month. Not a budgeting app. Just open your bank account or credit card and look at the last 7 days.
Highlight anything you forgot you were spending on:
- Subscriptions you don’t use
- Little purchases that add up (takeout, snacks, delivery fees)
- Automatic payments you didn’t budget for
This isn’t about shame, it’s about seeing where your money is actually going so you can start to shift it.
🧮 Step 3: Use a Simple Framework
Try the 50/30/20 rule, adjusted for your reality:
- 50% Needs – rent, food, utilities
- 30% Wants – yes, even in debt, you’re allowed a little room
- 20% Debt/Savings – or whatever percentage you can swing right now
If you’re using 70–80% of your income just for essentials, that’s still worth knowing. It gives you something to work with, not a reason to feel bad.
🛠 Step 4: Automate What You Can
If your income is predictable, set up small automatic transfers or payments, even $10/week toward debt or savings builds momentum.
If it’s not predictable, build a weekly mini-budget instead of a monthly one.
⚠️ Step 5: If the Numbers Still Don’t Work, Focus on the Root
If your debt is too big for your budget to handle, no amount of cutting corners will fix that. That’s when it makes sense to explore real options.
At Relief, we help people request lower balances on overdue debt directly in the app, no negotiating, no paperwork, no phone calls.
⚠️ Disclaimer: Relief does not provide financial advice. The information in this article is for educational purposes only and should not be considered a substitute for professional financial guidance. Please consult a certified financial planner or advisor for personalized support.
Links to external websites are provided for convenience and informational purposes only. Relief is not affiliated with these third-party sites and does not endorse or guarantee the accuracy of their content.
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