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Believe it or not, more than half the country is presently living from paycheck to paycheck while others are struggling to afford even the bare necessities. There are several instances in which this could take place. Sometimes expenses increase but incomes don’t. In more serious circumstances, an illness, injury, loss of employment, or divorce can drastically change your financial status.

Expenses Far Outweigh Your Income

Whatever the reason you’ve found yourself in this situation, the reality is your income is significantly reduced but your expenses remain the same (or higher). You realize this is a problem, but how in the world do you fix it? While it can take some time, there are plenty of options for rebalancing your finances. Check out this advice listed below:

Cut Way Down on Spending

Start with a reality check. Are you really trying to maximize your income or are you unnecessarily spending money on things you don’t need?

Start with a reality check. Are you really trying to maximize your income or are you unnecessarily spending money on things you don’t need? If you don’t presently have a budget to review, look at receipts, bank statements, and credit card statements to get an idea of how you distribute your money. What you may find could be very surprising.

Then, list all of your expenses and ask yourself if you really need it. For example, if you’re paying for cable services, this isn’t a necessity when there are so many free and affordable streaming services you could buy. If you’re eating out every day, perhaps you could start making meals at home and save eating out for special occasions. The more you can cut from your spending the more money you have to allocate to things you really need.

Get Debt Under Control

Debt consumes a lot of people and sucks up most of their income. If you can reduce the amount of debt you have, you essentially free up money that can be put towards your regular monthly expenses. No matter how much debt you’re dealing with, there are ways to chop it down to size or eliminate it altogether.

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Pull your credit reports and statements to get an idea of all your outstanding debt. Then, contact service providers to find out if you can work out something more affordable. Whether they offer to remove late fees, lower the interest, give you a settlement amount, or suggestion more affordable payment arrangements, it all helps you in the long run.

You can then use short-term solutions like bad credit installment loans to knock out small debts (of course, remembering to pay back the loan). You can put every extra penny you have towards paying down debts. You can also use the extra money you found from cutting back on your expenses to pay off your debt before applying it to your monthly bills.

Earn More Money

If after trying to cut back on expenses and pay down some of your debts you’re still finding it difficult to pay your bills on your salary you may need to consider bringing more money into the household. This doesn’t have to mean getting a second traditional job, however. There are lots of opportunities to earn money without having to leave the house. You can sell merchandise online, manage social media accounts, start a blog, write reviews, design websites, and so much more. Just be sure not to be irresponsible with the money you bring in and actually start using it to pay your monthly expenses.


Last but not least, you may simply need to downsize to allow your lifestyle to coincide with your income. This may be a tough pill to swallow, but being under financial stress is physically and emotionally damaging. You might need to sell your house and move into an apartment, move in with relatives for a while, ditch the car and use public transportation, or trade-in your new car for a used one you don’t have such high payments on. If it provides you peace of mind and makes life more affordable, it’s worth the sacrifice.

Lots of American households struggle every day just to survive. Being in such dire straights really does alter your mood and your quality of life. If you’ve found yourself in a circumstance where your income no longer covers your expenses it’s time to make efficient changes. Using the suggestions from above will certainly help you to free up money or earn more income which can be used to help balance the books.

Anne Gibson