Smart Money Training Program

Topic 5.3: When Money is Short

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Prioritize which bills to pay first when money is short.

What to do when Money runs short

Even with careful planning, money can run short.  If this happens, you need to prioritize your expenses based on their importance and impact.

Prioritizing means making choices about which bills you will pay in full, pay partially, or pay late.  You still need to pay all your bills, but the order you pay them can sometimes help you make it through the month.

Examining the consequences of not paying specific bills in full and on time is the first step to prioritizing. Think about what might happen if you don't pay.

Pay particular attention to the consequences that:

• Prevent you from earning income

• Jeopardize your shelter

• Impact your or your family’s health or ability to live independently

• Could result in loss of your assets

Remember the Key Takeaways:

• Prioritize which bills to pay first when money is short.