There is No Money Left After Paying My Bills

A podcast listener recently asked me this question.

"What does one do if, after adding up fixed expenses, there is no money leftover and nothing to cut back on?"

In this post, I will share my thoughts on what to consider if you find yourself in this position. 

Of course, I have no idea about the details and circumstances behind this question, so I will do my best to address this issue from various angles. There are also a million thoughts flooding my brain regarding this. So bear with me as  I flesh this out. 

Viewing wants as needs

One of the cornerstones of wealth building is embracing frugality. People who score low on frugality are more likely to view wants as needs. So, in this case, look at your fixed expenses one by one. Are they all truly needs? Let's define needs as the bottom two rungs of Maslow's hierarchy of needs. All humans need to survive are at the bottom of the pyramid. This is food, water, and shelter. Then second from the bottom is safety needs, which create the foundation to satisfy the rest of the needs. However, you do not need an expensive gym membership to achieve your health need. Adequate exercise can be achieved through walking, running, or jumping in place. I'm not saying you should jump in place for exercise, I certainly don't, but I hope this helps make the point!

Further, you do not need TV subscriptions to satisfy the needs of the next level up on the pyramid, love and belonging. Think of all of the humans in less fortunate areas of the world who are, well, likely a whole lot happier and fulfilled than many of us! They may have all their needs met up to self-actualization. Think about a Buddhist in Asia who reaches the absolute pinnacle of self-actualization for free. Beyond the bottom two rungs, all these needs can be had for a fraction of the price. 

Also, financial security would live in safety needs, especially when you consider how much money is needed to provide the physiological needs. So, have you ever bought things or experiences that help provide belonging and love, self-esteem, or self-actualization needs but reduced your financial security? I know I have. By doing this, we may never actually progress and find ourselves stuck facing our financial money monster. 

I know there will be many who disagree with me! And that is okay. Try and be as honest as you possibly can with yourself. It may be painful to cut things that feel non-negotiable, but the alternative to cutting them is often worse. 

You simply aren't making enough money

I occasionally talk with people who wonder why they have been unable to save money. After reviewing their financial situation, it becomes clear that the issue is not necessarily extravagant spending. Often these individuals will be just barely able to afford the bonafide necessities, like food and shelter. I have to explain to them that at their level of income, it would be hard for anyone, ADHD or not, to be able to save money. 

This is the unfortunate reality many find themselves in. Life is expensive. Over the last three years, food prices have increased by 17%, and our wallets feel it. If you haven't had an increase in income over the two years, you have effectively lost 10% of your spending power thanks to inflation. So if things are all of a sudden feeling extra tight, this is part of the problem.

So what do I recommend in these cases? It comes down to finding a way to earn more income. You don't necessarily need to rush to do something you don't want to do. As humans, our biggest asset is our brain. I always encourage folks to learn new skills and make themselves more marketable. Then, when you earn more income, make sure you use that extra money effectively and efficiently. That is where having a financial planner or pursuing financial education comes in handy. 

Ideas when you have no money left over

Hopefully, you can identify some more expenses that can be cut. If you are having trouble coming up with anything, here are a few things to consider. 

Consolidate your debt

Consolidating the debt can help reduce your monthly payment if you have high-interest debt across multiple sources. You can do this using personal loans, home equity loans, or by engaging a debt relief organization. These organizations can help you by negotiating with creditors to lower your monthly payments. Check out this article for a good list of these types of companies. 

Call your credit card companies

You may get them if you call and ask for lower rates! Credit card companies would rather you pay some interest than nothing at all. 

Check if you're overpaying for car insurance

Car insurance rates are changing all the time. Shop around and look for a better rate. Talk with an agent and tell them about your driving habits and find out if there is anything you can do to lower your rate.

Cut the cord

Do you still need cable? Nowadays, most people can get by with half-decent internet and a couple of streaming subscriptions. 

Evaluate your mobile bill

There is a significant opportunity to save money by switching to pay-as-you-go or prepaid phone plans. I have clients who pay as little as $25 monthly for mobile!

What do you want?

We must understand what we are trying to accomplish over the long term. Sure, you can make drastic lifestyle changes to save some money or find some way to make extra money and save. But what is the end game? It is incredibly important to figure this out so you can use the leftover money to help you get where you want to be. For many, that is just security and freedom. In that case, it is incredibly important to buy assets and invest and get your money working for you so you have something to show for your efforts at the end of the day.

If you want to get on the path toward building wealth, building actual assets, and marching towards a future you can be proud of, consider my long-standing offer to have a friendly, no-pressure thirty-minute discovery call. I am looking for ambitious, driven, and motivated ADHDers who want to build financial intelligence and wealth and be able to live a rich and fulfilling life without money anxieties.