This scenario will be familiar to millions of people across the country. You paid all your bills, you did your big shop and now you’re out of money.
But there are still two weeks until you get paid.
Or you can usually make it until payday but you had a burst pipe or your car needed work and now, you’re out of money.
What do you do?
There are no easy answers to these scenarios. Many people will dip into their overdraft or use a payday loan to get them through.
There are other ways and that’s the subject of today’s post.
How to make it through the month with no money
I’m not going to pretend any of these tips are easy because they won’t be.
They will be cheaper and less financially painful than the alternatives though.
Here are my suggestions for trying to make it through the month:
Dip into savings
If you have savings, use that to help you through. It’s what savings are for after all.
There is a tendency to save an amount of money and not use it because you might need it for an emergency.
I think running out of money before payday is an emergency, don’t you?
The whole point of savings is to help you through when you need it. That’s now.
Use what’s in the food cupboard
Most of us have tins in the cupboard or food in the freezer that seems to stay there forever. Now might be a good time to use it.
Find a recipe that uses up some or all your spare food. One pot meals you can cook in bulk and freeze would work best.
Cook it up, portion it out and eat it between now and payday. If you have the ingredients to make a couple of these and enough spare change to keep you in fresh milk and bread, you could make it through.
Use a credit card
I’m not a fan of credit cards but they are a tool to be used when needed. This is one of those times.
Buy the minimum to get you through on your credit card until payday.
Then pay off as much of the balance as possible without leaving yourself short the next month.
If anything else happens that needs paying for, use your card and consider switching to a 0% credit card to save paying too much interest.
Clear the card at the end of the month and you’ll avoid interest. Just make sure you leave yourself enough to make it through next month.
Ask for an advance from work
Depending on where you work, some employers will give you a small advance on next month’s salary if you need it.
Don’t ask unless you really need it but use it if you can.
Ask your boss for a small amount of money to get you through the month. Keep the amount as modest as possible and tell them why.
If you had something go wrong, show them the receipt as it will help your case.
‘Can I save a sub of £50 to get me to payday because I had to have my boiler repaired and now I’m short. Here’s the invoice from the plumber.’
Not every job will allow this but some might.
Use up any gift cards or loyalty points
Have any gift cards laying around unused from Christmas? Have an old Nectar card or other type of loyalty card?
Check the balances to see if you have money on them and use that to help you through.
Even an extra £10 or £20 could help you buy food or bus fare for a week or two.
What not to do when you run out of money
So those points above are all simple ways to help get you through a tight month.
They won’t make it easy but then can help you make it.
But what should you avoid doing at all costs?
Use a payday loan
Payday loans are marketed as convenient ways to get through the month. What they actually are is predatory and expensive.
They are an incredibly expensive way of borrowing and should be avoided at all costs.
They will usually leave you short for a few months with the repayments, so while you get a little cash boost this month, you’ll spend the next several months paying for it.
Use your overdraft
Unless your bank offers a free arranged overdraft like First Direct, avoid using your overdraft wherever possible.
They are another very expensive way to borrow. Many overdraft facilities can charge up to 40% interest. And that’s from your bank!
I just don’t know how they get away with charging that much but they do. So, unless you have an arranged facility, avoid them at all costs.
Don’t use credit or buy now pay later
I suggest using credit cards as a last resort but I would definitely advise against using store credit or buy now pay later schemes.
These can also be very expensive ways to borrow money.
Many large chains, supermarkets and other retailers will offer some kind of credit. Then you have those apps that let you spread payments like Klarna.
Avoid the slick marketing and lifestyle imagery. They are very expensive ways to borrow.
Making it until payday
I’m not going to pretend getting through the month will be easy, because it won’t be. Especially if you have children.
But it may be possible to do without getting yourself into debt.
Entertain yourself and your kids for free, minimise gas and electricity use by going for walks or spending time in the park, eat those one pot meals you made with leftovers and you can do it.
