Separating out needs, obligations, and wants can be challenging because what one person may
view as a want, another person may see as a need. Financial empowerment is about providing
people with options and letting them make choices for themselves. Being able to separate needs,
obligations, and wants for yourself empowers you to cut back on those areas you determine are
optional in your life.
To get a clear picture of how you use your money and financial resources now, use the Tool 1:
Spending tracker, to get started. Many people who track their spending for a week or a month
discover that they are spending money in small ways that add up and sometimes don’t match
their priorities. Once they track their spending, they’re better able to make decisions about
which bills and expenses can be reduced.
If you are trying to make ends meet or find money to save, you may also want to cut back on the
money and financial resources going to bills and living expenses. When this is the case, the key
is to identify which bills and expenses can be cut. For specific ideas on cutting back on uses of
money and financial resources, use Tool 3: Strategies for reducing expenses.
Paying bills
Many people have recurring obligations—rent, utilities, car payments, child support payments,
and insurance payments are examples of these obligations. You may avoid late fees and other
consequences of late or nonpayment if you can:
Inventory the bills you have
Set up a bill paying calendar so you can visually see when payments are dueTool 2: Bill calendar was designed to help you document what you owe and when it is due. You
could also explore reminder services for bills as well as apps. These are designed to send
reminders when bills are due and should be paid. Another part of bill payment is how bills are
paid. In general, you can pay your bills using:
Cash
Money orders Checks