What is the best way to avoid running out of money too quickly?

It's almost the end of the month, and you log in to your bank account to check your balance. And maybe it's no surprise to find there's not a lot of cash to work with. 

If that sounds familiar, you're not alone. Nearly 80% of Americans live paycheck to paycheck—even people who pull in $100,000 or more each year. But what is the best way to avoid running out of money too quickly when your salary only goes so far?

We understand the frustration. So, let's look at how to avoid cash flow shortages and maybe save a little money while you're at it.

What is the best way to avoid running out of money too quickly?

The best way to avoid running out of money too quickly is to make a financial plan that you can stick to each month. 

The core of this plan centers on three things: 

• Budget and prioritize needs 

• Trim unnecessary expenses 

• Boost your income

It's a simple strategy, but it addresses some of the most common reasons why people find themselves low on money. For example, cash flow problems can be chalked up to:

• Lack of budgeting, or using a budgeting method that doesn't really fit your needs

• Spending on wants, before making sure your basic needs are covered

• Overspending on things that don't make your life better or serve a specific purpose

• Using credit cards to cover the gap between income and expenses, which can lead to debt

Sometimes, it's your income that's the problem. The typical family brings in a median household income of around $80,000 per year, but if you've got a mortgage or steep rent to pay, plus kids to feed and clothe, it doesn't take long for your paychecks to disappear.

If you recognize that you have a problem with making your dollars stretch, then you're already partway to a solution. We've got some tips that could help you banish the words "I'm running out of money" from your vocabulary.

1. Get to know the financial you

Your spending habits can offer a big clue about why you run out of money. If you don't track expenses yet, it's time to start. 

The simplest way to keep tabs on where your money goes is to use a free budget app like Achieve MoLO. 

The Achieve MoLO app lets you connect your bank accounts and credit cards in one place. You can discover what you've spent and which expenses are on the horizon. 

When you track spending this way, it becomes easier to understand which expenses eat up the most money. And you can challenge yourself to cut down on nonessentials so you don't run out of money as quickly. 

2. Choose a budgeting style

If you run out of money and don't know why, a budget could help. 

A budget is your plan to manage income and expenses each month. There's more than one way to create a budget. Some of the most popular budget methods include:

• 50/30/20 budget rule. The 50/30/20 budget splits your income by percentages: 50% goes to needs, 30% goes to wants, and 20% goes to savings and debt repayment. 

• Zero-based budget. A zero-based budget gives every dollar of your income a job. The goal is to have $0 left after you pay bills, cover expenses, and save. 

• Pay yourself first budget. The pay-yourself-first budget encourages you to set aside money for savings and pay down debt before you spend money on anything else. You might try this option if you struggle to save. 

• Envelope budgeting. With this budget method, you set up envelopes for groceries, gas, and other expenses and fill them with cash. You can only spend the cash you have on hand until the next budget period starts. 

What's the easiest way to start budgeting? The answer is different for everyone. 

If you'd like to be able to track expenses from anywhere, then a free budgeting app could make sense. All you have to do is connect your accounts to track bills, expenses, and debt payments. 

3. Prioritize needs over wants

Some people get into trouble with spending and find themselves low on money because they confuse needs vs. wants. 

A need is something you have to spend money on to live. For example, rent or mortgage payments, utility bills, groceries, and gas could all go into the needs category. 

A want is anything you don't need. New clothes, streaming subscriptions, takeout, or a weekend trip are all examples of wants. 

If you're tired of running out of money all the time, you might need to reevaluate your financial priorities to focus on what's most important. 

Go through your expenses and ask yourself, Is this essential? If the answer is no, then consider whether you can lower that expense or cut it out altogether. Remember—it doesn’t have to be forever.

It might feel a little painful at first, but this is one of the best ways to save money on bills. 

4. Look for spending you can trim

Money can run out faster when you live above your means. To live above your means is to spend more than you can afford, which can lead you to run out of money before the month ends.

That could happen if you give in to impulse buying or don't track expenses. The choice is either to cut back on spending or continue living paycheck-to-paycheck. 

But what if you're on top of your budget and still seem to run out of money too quickly?

The truth is, your paychecks can only go so far if your income stays the same while the cost of living goes up. Treating yourself to something as small as a cup of coffee on the way to work (or a beer on the way home) could feel like a betrayal of your budget, even though it's not your fault that everything is so expensive. 

If you've already cut your budget to the bare bones, think about what else you can do to gain some traction and avoid running out of money. For example, could you:

• Downsize to one car if you're a two-vehicle household 

• Learn some DIY skills so you don't need to call a repair person every time something breaks

• Negotiate a discount on your rent, or refinance your mortgage if you own your home

• Use cash back apps to save money on the things that you do have to buy

The more ideas you have to save, the more wiggle room you could add to an already tight budget. 

5. Build a small emergency fund

An emergency fund helps you avoid financial panic when life hands you lemons. It's money that you set aside to use only in a true emergency. 

Look at your budget. Is there any amount you could save to start building a financial cushion? Even $5 or $10 every payday still counts, and it will add up over time. 

How much should you save for emergencies? 

Some financial experts might say you need three to six months' worth of expenses in an emergency fund. Others may tell you that it makes sense to save a set dollar amount for every person in your household. 

The bottom line is your emergency fund number should be an amount that lets you sleep at night. 

Here are some tips to get your emergency fund started:

• Open a separate account. Keeping your emergency cash in your checking account can be a real temptation if you're trying to avoid running out of money. You might think to yourself, "I'll dip into it just this once," but one time becomes two, then three, and before you know it, the money you've saved is gone. Opening a separate savings account for your emergency fund could help you avoid that temptation and push you to be more accountable to your budget. 

• Set a small savings target to start. You may want to aim high with your emergency fund, but if you're already low on money, you may need to set a smaller goal. For example, $5,000 may be your stretch goal, but if you can only save $25 each payday, don't be discouraged—what matters is that you start saving.

• Set up automatic transfers to savings every time you get paid. Automatic transfers could help you grow your rainy day fund without even thinking about it. Go through your budget to figure out how much you can save each pay period, then schedule an automatic transfer of that amount to your savings account. If you get a raise or you start bringing in extra income from side jobs, you can bump up the amount you save. 

6. Consider side income to boost your budget

If you're doing all you can to cut down on spending but still find yourself running out of money, think about what you can do to bring in some extra income. Extra cash flow could boost your budget so you're not always worried about whether you'll have enough to pay the bills. 

Decide how you want to try and make more money. For example, do you want to get a part-time job? Could you take on more hours at work? Or would you like to try a side hustle or two? 

Here are some of the easiest ways to generate more income in your spare time. 

• Take surveys. Survey sites could pay you cash (or gift cards) when you answer questions. You won't get rich, but it's an easy way to make money from home with your phone or laptop. 

• Test websites or join a focus group. If you're interested in making money online, you could get paid to test websites or participate in focus groups. You get paid to share your feedback, and you don't need any special skills to get started. 

• Sell things. Look around your house. Find anything you no longer need? If so, you could sell it for quick cash on Facebook Marketplace or Craigslist. 

• Do yard work. Can you cut grass, trim hedges, or rake leaves? If so, you might offer lawn care services locally to make money. 

• Sell your services or time. Gig work could bring in extra money, and it's usually flexible. For example, you could deliver food, get paid to shop for groceries, or do odd jobs to make some quick cash. 

If you need more ideas, challenge yourself to brainstorm at least 10 ways you could make extra income right now. 

7. Research debt solutions if you're spinning your wheels

What happens when you run out of money and payday is still several days (or weeks) away? You could do what lots of other people do, which is use credit cards or loans to get by. 

The problem is that you could get caught in a cycle of debt. Debt could block your path to financial freedom, and if you feel stuck, it helps to know that you have options. 

There are plenty of debt solutions—you just have to find the right one for you. Here are some potential ways to deal with debt effectively.

• Debt consolidation loans. A personal loan could help you pay off multiple debts and combine them into one. You'd have fewer debt payments to make each month, easing stress on your budget, which could help you avoid running out of money to cover the bills.

• Debt management. A debt management plan (DMP) combines multiple debts into one, without a loan. A credit counselor can help you set up a DMP, and they may be able to persuade creditors to lower your interest rates or reduce fees.

• Debt relief. Debt relief could help you resolve debts for less than what you owe. Once enrolled, you make one monthly payment into a dedicated account, and a debt expert negotiates with your creditors on your behalf. You could pay less monthly than you are now, and potentially get rid of all of your unsecured debt in two to four years.

If you're not sure what you need, our debt quiz could help. This brief, two-minute quiz could steer you toward the right Debt Care™ plan for your needs. 

How can I get help if I'm drowning in debt?

If you're completely overwhelmed by debt or don't know what to do when you've run out of money, financial help is there for you. You can talk to a debt expert about your money situation to figure out what solutions might work best for your needs.