What to Do if You're Running Low On Money

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 woman upset looking at phone because she's running low on money

Have you ever felt a sudden sense of dread when you realise you’re running low on money? It’s only natural to have a moment of panic when you think about financial commitments and any potential unexpected expenses that will inevitably pop up in the future. 

Not everyone is naturally great at budgeting or planning their finances and that’s okay! Good money management all comes down to learning and practice. The more you practice, the easier it becomes for you to stay on top of your finances. 

However, what do you do when you’re running low on cash? Thankfully, there are plenty of ways to manage your money effectively and make the most of what you have. 

If you want to start making smarter financial decisions and get on the road to better financial health, we’re here to help. 

In this article, we’ll explore five effective strategies to implement if you’re running low on money. These strategies and tools will help you regain control of your finances, avoid unnecessary stress, and make every pound count.

 

1) Review Your Spending

Reviewing your spending can be emotionally challenging, especially when you’re running low on money. However, doing so can make a big difference and help you improve your money management. 

When it comes to spending there are two main types of expenses: needs and wants. Needs are the essential expenses that you need to buy to survive, such as food, rent, and utilities, whilst wants are things you can live without, typically things like subscriptions and luxuries. 

The first step is to look at how you’re spending your money and if you can make any changes. It’s important to think about what you want to do with your money before spending it on any wants. 

Try to find areas of unnecessary spending and attempt to move this money to areas that you consider more important. You might be surprised by what you’re buying and what you can easily do without.

Once you understand your spending habits, you can start making a plan to improve them and make more responsible financial decisions.

 

2) Create a Budget

Creating a budget is a great step towards building healthier money habits. If you’re running low on money, a budget provides you with more control over your finances and may make it easier for you to achieve your financial goals.

Begin by adding up your monthly income. This includes your salary as well as any other sources of income such as bonuses, tax refunds, or income from side jobs. 

Next, calculate your monthly expenses. This would include everything from major expenses, like rent and food, to small expenses, such as new clothes or subscription services. 

Lastly, subtract your expenses from your income. This amount will serve as the starting point for your budget. Any money that’s left over can be used to pay down debt or build up savings. 

Think of your budget as a living document that can be adjusted at any time whenever needed, like if you need to add or eliminate a monthly expense. 

 

3) Pay Your Important Bills

One of the keys to living within your means and staying out of debt is paying all your important bills in full as soon as they’re due. If you stick to this approach, you can avoid spending money you don’t have, won’t need to borrow, and can save on having to pay interest and late payment fees. 

Another benefit of paying important bills on time is that it can also improve your credit score and make it easier to apply for other credit options in the future, if needed. 

Having a strong on-time payment history will make it easier for you to manage your money, especially during difficult periods.

 

4) Find Ways to Cut Spending

Sometimes, it’s easy to get caught up in the moment and buy something you don’t need. However, cutting back on your spending can free up funds to put towards bigger financial goals and invest in your future. 

Discretionary spending, such as impulsive purchases, eating out, streaming subscriptions, and unnecessary memberships, are easy to slash, but you may be able to cut back on essential expenses too. For example, research if you can get lower insurance rates, internet, and mobile data plans. If you’re lucky, you may even be able to negotiate energy bills. 

When running low on money, reducing your spending is an effective way to create more breathing room in your budget and get your finances back on track.

 

5) Consider Short-term Loans

If you’re living paycheck to paycheck and running low on money, covering a surprise expense can feel downright impossible. As much as you go over your budget again and again, there may just be no wiggle room. 

If you’ve built up an emergency savings fund, you could dip into that, or use a credit card if you have to. Or, if you owe money that you can’t pay back, you could talk to the lender, provider, or company you owe and work out a payment plan to spread the costs. However, if none of these options are viable for you, it might be time to consider a short-term loan.

Short-term loans provide you with quick financial support that you’ll have to repay over a short period of time, which may vary depending on the lender and loan amount. 

Short-term loans shouldn’t be treated as a go-to solution for occasional financial hiccups and getting lazy with your money management. The main goal of good money management is to avoid extra debt, whenever possible.

However, if you’re facing a financial emergency or urgent expense that is beyond your control, taking a short-term loan can help you make the best out of a challenging situation.

 

Choose Salad Money for Fair and Affordable Personal Loans

If you feel you’re running low on money, remember that it’s not the end of the world. By staying calm, being proactive, and examining your finances, you can make the most of what you have. 

At Salad Money, we understand that life doesn’t always go as planned and financial crises can occur at any time. That’s why we offer fair and affordable personal loans to help you overcome your financial burdens. 

Our ‘More Than Your Score’ loans help you access the money you need regardless of your credit score. Using an Open Banking system, we analyse loan affordability based on your current financial situation to provide you with exactly what you need. 

As an FCA-regulated organisation, we keep your financial information safe and secure. 

To learn more about our personal loans, click here, and to read more blogs like this one, visit our blog page now!


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