"I'm Scared, Broke, and Barely Breaking Even!"

Jayson Thornton, CFP is an award winning Financial Advisor and host of "Pocket Watching with JT" a financial advice podcast and YouTube channel. Below he answers a recent question from a subscriber:

Lisa from Georgia asks: "I'm scared, broke, and barely breaking even! I make $3,200 a month and my expenses are $3,000. I have $8,000 in high-interest credit card debt and only $150 in savings. I’m terrified of losing my SNAP benefits. What is the first thing I need to do?"

JT: Lisa, you are playing the game of money without a scorecard, and you can't win if you don't know the score. The very first thing you need to do, before you worry about SNAP benefits or that $8,000 credit card debt, is Step 1: Budgeting

Your immediate goal is to gain clarity and control over your cash flow. Right now, you think you have $200 left over each month ($3,200 income minus $3,000 expenses), but that $150 in savings tells me you're not tracking correctly. You are missing where the money is going. That $200 buffer is disappearing, and we need to find the leak.

Step 1: Get Your Money Scorecard (Budgeting) 💰

Your first move is not to pay off debt or build the full emergency fund; it's to create your Money Scorecard. Budgeting is the foundation of financial freedom. Without a solid foundation, everything else becomes shaky.

Here's your action plan, straight from the Pocket Watcher Money Rules:

1. List Everything: List all your income ($3,200) and every single expense for the last month. I mean everything—from rent and utility bills to that $4 coffee or that quick takeout meal. You'll need to know your Net Worth Truth (Assets minus Liabilities) to know your starting point.

   
   

2. Find the "Want Money" (Debt Fuel): Your paycheck difference is only $200, so you are barely making it. We need to find your "Want Money"—the discretionary spending on non-necessities. This is the easiest place to find extra cash to use as "Debt Fuel" later. For example, Maria found $500 a month on takeout and instantly freed up $250 by cutting it in half. You need your own Maria moment.

   
   

3. Implement a Budgeting Method: I recommend the 50/50 "Pawn" starter budget to get you stable fast.

   
   

4. 50% of your income goes to NEEDS (Necessities like housing, food, transportation, minimum loan payments).

   
   

5. The other 50% goes to SAVINGS (This is a temporary step to build a 1-month emergency fund ASAP).

   
   

6. Since your expenses are already so high, this temporary step will force you to cut until you only spend 50% on true needs.

You need to know where your money is going so you can tell it where to go!

🚨 Don't Panic About SNAP

You're terrified of losing your SNAP benefits, but an insane person does not change based on conditions. That is an excuse. The fact is, with only $150 in savings, you are one unexpected flat tire or sick day away from going into a Debt Spiral.

The only way to ensure you never get into a financial mess again is to build your Guardrail.

Once you complete Step 1 and find that extra cash, you will immediately move to Step 2: Emergency Savings.

• Your first goal is to build that initial 1-month emergency fund.

• The final goal is 3 to 6 months of essential living expenses.

• Keep this money in a High-Yield Savings Account (HYSA), separate from your daily account, where it's safe and easy to reach but not tempting.

This savings is your Debt Spiral Guardrail. It stops unexpected bills from forcing you into new debt and backward steps. The rules say you must fill this account before you move on to attack your $8,000 credit card debt.

You are in control, Lisa. Financial wellness is not about a single point in time; it's about building new habits. Your first habit is tracking every dollar. Next go to PocketWatcher.net and follow the Pocket Watcher 7 Money Rules.

About

Jayson Thornton, CFP is the founder of Thornton Financial and host of Pocket Watching with JT where he answers your financial questions. To learn more or submit a question go to www.PocketWatcher.net

For press inquiries, contact Jayson Thornton, CFP at PocketWatcherJT@gmail.com or 314-776-9076.