When Money Is Tight, What Should I Get Rid of First?

Q: When money is tight, what should I get rid of first (Cable bill? Netflix? Gym membership?)

Rachel Cruze: It’s all about priorities!

Plus, there are a lot of factors that go into that decision. First, set a goal for how much of your monthly spending you want to cut, then prioritize your spending and get to cutting!

Can you watch TV online instead of paying for cable? Is there a cheaper gym option than the one you’re using? And if not, you can always go to the free gym—the one where you run outside in the sunlight!

You might be able to find cheaper options for everything, meaning you don’t have to cut anything out of your budget. Or you might have to go on a beans and rice and no television diet for a year. It’s all based on how extreme your situation is.

The good news is that, by asking these questions, you are on the right track. You’re thinking about this stuff, which is a great sign. Remember, anything you cut out of your budget is just temporary.

When money’s tight, you want to focus on your true needs, like food, shelter, clothing and transportation. Everything else is just a want, and you can live without those for a while.

Rachel Cruze Growing up as Dave Ramsey's kid, Rachel Cruze learned the basic principles of money at an early age. She travels across the country teaching those same principles, in a personal and passionate message of money and hope, to teens and young adults. To find out more about Rachel, visit www.daveramsey.com/speakers or follow her on Twitter at @RachelCruze.