Tool 4:
When cash is short—
prioritizing bills and spending
Even when you increase sources of income or cut spending, you may still find yourself to be cash
short. But when bill collectors are calling, it can seem easiest to just pay the “squeakiest wheel.”
Take time to consider how each of your bills impacts these areas: protecting your job, your
shelter, your assets, and meeting your legal responsibilities.
You are responsible for paying all of your obligations on time. When you truly do not have
enough money to cover your obligations and living expenses—this means you have cut out
everything you don’t need—you may have to make a short-term plan to get through the month.
Sometimes this may involve paying some bills late. Sometimes it may mean missing a bill. This
can be an extremely stressful situation. While stressful, it requires careful, clear-headed
thinking. Part of making this short-term plan involves understanding the consequences of
delaying paying certain bills. And sometimes it means ignoring the squeakiest wheel for a short
period of time.
Use the following tool to help you make a short-term plan to get through those months where
you cannot pay all your bills or living expenses.