Running out of money is never a pleasant experience, but it’s something that can happen to the best of us. Whether it’s because you’ve lost your job or simply spent too much, knowing how to cope when the funds stop flowing is essential. 

In this post, we look at some of the things you can do when the money runs out. We explore various options, including where to go for help and the mental tricks to adopt to get you out of a challenging situation financially. 

So, without further ado, here’s what to do when the money runs out: 

Do Look At Where You Are

The first step is to look at your situation and ask whether it is something you can recover from. In most cases, it is. You just need to find alternative opportunities or start budgeting. 

However, you’ll also want to consider whether getting out of financial trouble is feasible. Advisors can help you learn more about where you are and whether they would recommend alternative options, such as bankruptcy

Don’t Ignore The Problem

You should also avoid ignoring the problem and hoping it will go away. Money woes rarely solve themselves: they require consistent and determined action by you. 

If you are in the habit of ignoring issues, you’re not alone. Often, we would prefer to procrastinate instead of dealing with the challenges before us. But this approach, naturally, isn’t ideal and can often make the situation worse in the long-term. 

Do Cut Back

While you might not want to cut back on spending, it is sometimes necessary. Cutting back might mean only going to the grocery store for food (and not restaurants) or saying no to yet more shopping trips. 

Cutting back can feel like deprivation, but it is good to ask yourself why you might be spending so much, even if your financial position is causing you distress. 

Many people get into bad habits and spend too much on non-essentials, causing them to lose money they could otherwise save and invest. If you can stop this problem, you should find your money situation improves significantly. Just focus on the well-being you experience by not feeling stressed all the time about money. 

Don’t Put Off Bills

While it might be tempting to put off bills, we wouldn’t recommend it. Companies share information with each other, which can increase the cost of credit cards and make it more challenging to pay off existing debt. 

Instead, prioritise your essentials first, like your mortgage and car loan. Then see what you have left over at the end for general spending. Put around 50% of this money aside for paying down debts and use the remaining 50% for the stuff you want. 

Do Sell Things You Don’t Need

Another pro tip is to sell items you don’t need. Companies like Midlands Gold Buyers say you can raise funds just by selling old jewellery you don’t want anymore. 

There’s probably lots of items lurking in your home just waiting to be sold. Treat it as a decluttering exercise.