When Things Don’t Go So Well With Your Budget: What to Do When You’re at Rock Bottom

We recently shared a blog on 5 Simple Things to Improve Your Budget — and for many people, those tips are a great starting point to build better money habits.

But what if you’re not in that position?

What if your budget isn’t just a little tight, but completely upside down? Maybe you're facing a job loss, have a mountain of debt, or have been hit by an unexpected life event like illness or separation. Maybe your income has slowed to a trickle — or stopped altogether. If that’s the case, this article is for you.

Let’s talk honestly about what you can do when your financial situation feels like it’s hit rock bottom.

First Things First: Take Inventory

Before you can move forward, you need to understand where you’re at — even if it’s painful.

Yes, this part can be very overwhelming. But don’t ignore it.

Take a deep breath. Get everything out in front of you.

Open up your banking app, look at your bills, your debt repayments, any income coming in (Centrelink payments, side hustles, freelance gigs, rental income — whatever). List it all out. Be honest.

You want to get a clear picture of:

• Your current income (or lack thereof)

• Every single regular expense

• All your debts (credit cards, loans, BNPL services, etc.)

• How big the gap is between what’s coming in vs. what’s going out

💡 Helpful Tip: If you’re in Australia and struggling to do this on your own, reach out to a free financial counselling service through the National Debt Helpline (1800 007 007). It’s confidential, non-judgmental, and completely free.

Next: Secure the Basics (Maslow Would Approve)

If you’re familiar with Maslow’s Hierarchy of Needs, you’ll know that the foundation of everything is basic survival — food, water, shelter, safety.

In a financial crisis, you should approach your spending in the same way.

Here's how to break it down:

1. Housing
   Whether you're renting, paying off a mortgage, or staying with family — securing your roof is priority #1. Talk to your landlord, mortgage provider, or housing service if you're at risk of falling behind. Many lenders offer hardship arrangements that can pause or reduce your payments temporarily.

2. Utilities
   Electricity, water, gas, phone/internet — these are non-negotiables for living safely. Check with providers to see if you’re eligible for bill deferrals, rebates, or hardship programs. Don’t assume — ask.

3. Food and Groceries
   Focus on essentials. If you need assistance, there are local charities and food banks (e.g., Salvation Army, St Vincent de Paul, OzHarvest) that offer support without judgment.

4. Transport
   If you need your car or public transport to get to work or medical appointments, include these in your priorities. Look for ways to reduce fuel costs, or seek discounted transport fares.

Everything else? Pause it if you can.

Review What You Can Delay or Pause

Not every bill needs to be paid right now. And when you’re in crisis mode, cash flow is king.

You may be able to defer, pause, or reduce:

• Loan repayments
  Most Australian lenders have hardship departments that can help restructure or pause payments if you’re experiencing financial stress. Reach out before you fall behind if possible.

• Buy Now, Pay Later debts
  Services like Afterpay or Zip also have hardship policies. You may be able to pause payments or set up a longer-term plan.

• Credit cards
  Contact your bank and ask about financial assistance options — including freezing interest or setting up a payment arrangement.

Are You Eligible for Any Government Support?

Don’t leave money on the table. Depending on your situation, you may qualify for:

• Centrelink benefits like JobSeeker, Parenting Payment, Youth Allowance or Disability Support Pension

• Rent assistance or crisis housing support

• Concessions and rebates for healthcare, energy bills, or public transport

• Emergency relief grants through local councils or charities

If you are in Australia , Check out Services Australia or speak to a financial counsellor to explore your options. Applying for help is not a sign of failure — it’s smart and proactive.

Ask Yourself: Is This Temporary or Long-Term?

This question matters. A short-term setback (e.g., redundancy or an unexpected medical bill) may need a different response than an ongoing issue (e.g., long-term unemployment, chronic illness).

If it’s temporary:

• Focus on damage control and cash flow.

• Consider taking on interim work (delivery driving, temp jobs, gig work).

• Cut non-essential costs as hard as you can for now.

• Use available support systems to bridge the gap.

If it’s long-term:

• You may need to restructure your whole lifestyle to match your new reality.

• Consider speaking to a financial planner or counsellor for help creating a sustainable plan.

• Downsizing your housing or car, moving in with family, or changing career paths may be part of the journey — and that's OK.

Don’t Be Too Proud to Ask for Help

We’re often told to “tough it out” — but financial stress is one of the biggest triggers for anxiety, relationship breakdowns, and even health issues.

You're not failing. You're human.

Talking to someone — a financial counsellor, support group, or even just a trusted friend — can help you find perspective and remind you that you’re not alone in this.

Bridge the Gap

At this stage, your goal is survival — bridging the gap between what’s coming in and what’s going out. You don’t need to “win” financially right now, you just need to hold steady.

That might involve:

• Selling unused items (marketplaces, Facebook, Gumtree)

• Asking for rent reductions or utility discounts

• Taking on temporary work or freelance gigs

• Leaning on friends or family for short-term support (if it’s safe and appropriate to do so)

Every little step helps.

Final Thoughts: You’ve Got This (Even If It Doesn’t Feel Like It)

Let’s be real: when your budget’s wrecked, advice about “cutting back on Netflix” isn’t helpful. You need support, structure, and a way forward — not judgment.

Here’s the quick summary:

1. Take inventory — get brutally honest about your finances.

2. Secure the basics — housing, food, utilities, transport.

3. Reach out — lenders, Centrelink, charities, and financial counsellors are all there to help.

4. Understand your timeline — is this temporary or long-term?

5. Bridge the gap between income and expenses — any way you can

Lastly, remember: your worth is not tied to your bank account. Tough times don’t last — but smart, small, consistent actions can make a big difference over time.

If you’re in Australia and need help right now, consider these resources:

• National Debt Helpline – 1800 007 007

• Services Australia – servicesaustralia.gov.au

• Lifeline – 13 11 14 (for mental health support)

💬 Have you been through financial rock bottom and made it through?

Share your experience with us or reach out — you might just inspire someone else who’s struggling today.