Money in One Chart

bad month

In a bad month, cutting the wrong thing first can cost you for years.

Subscriptions first, then variable spending, then a call to every lender, then retirement above the match. A missed payment costs more than anything on that list.

You asked for the bad-month checklist. It is below, as the slides from the post, then the one move, then the tool the chart points at.

Slide 1 of 7: In a bad month, cutting the wrong thing first can cost you for years.Slide 2 of 7: Five cuts, from first to last.Slide 3 of 7: A missed payment costs more than anything above it on the list, which is why the lender calls come before the retirement cut.Slide 4 of 7: Cutting the 401k first feels logical because it is the biggest line, and it is the wrong first cut for two reasons.Slide 5 of 7: What to say to a lender in a bad month.Slide 6 of 7: Putting the shortfall on a card feels like the easy answer, and at 22% it is the most expensive line on the list.Slide 7 of 7: Save this before you need it.

Five cuts, from first to last.

  1. 01
    Subscriptions and autopays.Every recurring charge. Pause rather than cancel where you can.
  2. 02
    Variable spending.Food out, rides, and whichever category moves the most.
  3. 03
    A call to every lender, before anything is late.Hardship programs exist, and a late mark lasts for years.
  4. 04
    Retirement contributions above the match.Drop to the match trigger, not to zero.
  5. 05
    The match itself.Last, and only if the month is still short.

The tool this chart points at

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