MILWAUKEE — Families across Wisconsin struggle to make ends meet after crippling inflation has led to historic rises in prices on everything from housing, food, clothing, and most recently a major jump in gasoline prices.
Financial educators recognize that the blow to budgets is difficult to withstand, but there are steps that can be taken to help ease the loss.
Jenny Abel, financial security manager at UW-Madison’s division of extension, said one of the most difficult steps is figuring out how to make more money.
“Look for ways to increase income, that step is often harder than cutting back,” Abel said.
That could include finding a higher paying job, asking for a raise at the current job, taking more work, or selling items to recoup some money to continue to be able to pay bills.
Before you may get to that step, Able said people should already be cutting back on expenses. She advises people to split their expenses into “fixed or flexible” categories.
Examples of a fixed expense would be rent or mortgage, or car payments. Flexible expenses are ones that can be skimmed or cut out completely.
Another step Able suggested is coming up with a clear spending plan for every dollar you bring in.
She questioned, “Where do you want your money to go, especially when resources are limited?”
That can help families better prioritize dollars.
If a closer look at your budget still leaves you in the hole, Able said it may be time to call creditors to ask for extensions or to communicate plans if you cannot pay.
Other resources are available for free if you need help navigating your money. Those interested can visit https://finances.extension.wisc.edu/people/contact-a-uw-madison-division-of-extension-financial-educator/.