Austerity Living

Financial advice for people losing income is usually insulting. "Cancel your subscriptions." "Make coffee at home." Those tips save $50/month. You need to save $2,000/month. This is real austerity — the actual hierarchy of what to pay, what to cut, and how to survive on dramatically less money while keeping the things that matter for your mental health and recovery.

Sources & Verification

• Federal Poverty Level guidelines: HHS ASPE, "Poverty Guidelines" (aspe.hhs.gov/topics/poverty-economic-mobility/poverty-guidelines)
• SNAP program: USDA FNS (fns.usda.gov/snap)
• Medicaid eligibility: healthcare.gov and Kaiser Family Foundation (kff.org/medicaid/)
• LIHEAP: ACF Office of Community Services (acf.hhs.gov/ocs/programs/liheap)
• Food bank locator: Feeding America (feedingamerica.org/find-your-local-foodbank)
• Income-driven student loan repayment: Federal Student Aid (studentaid.gov/manage-loans/repayment/plans/income-driven)
• Mortgage forbearance options: CFPB, "Mortgage Relief Options" (consumerfinance.gov/housing)
• Patient assistance programs: NeedyMeds (needymeds.org)
• $4 generic prescription programs: available at Walmart, Costco, and other major pharmacies
• Benefits screening tool: benefits.gov
• 211 helpline: United Way (211.org) — connects to local services in every US community

When to Use

• User's income has dropped dramatically (job loss, pay cut, divorce, disability)
• Needs to cut expenses by 40-60% or more
• Currently spending more than they're earning
• Panicking about money and doesn't know what to cut first
• Needs a clear, prioritized plan for financial survival

Instructions

Step 1: The payment hierarchy (what to pay and in what order)

When you can't pay everything, pay in this order. This isn't opinion — it's based on consequences.

Agent action: Help the user build their personal expense hierarchy using this framework. Calculate their monthly minimum.

PAYMENT PRIORITY (highest to lowest):

TIER 1 — PAY THESE FIRST (survival):
[] Food (but see Step 2 for how to cut this dramatically)
[] Shelter (rent/mortgage — you need a roof)
[] Utilities (electric, water, heat — minimums only)
[] Essential medication
[] Transportation to earn income (gas, bus pass, car insurance minimum)

TIER 2 — PAY THESE NEXT (legal consequences):
[] Child support (non-payment = jail)
[] Tax debts (IRS doesn't go away)
[] Court-ordered payments

TIER 3 — NEGOTIATE THESE (call before they call you):
[] Car payment (call lender, ask for deferment or lower payment)
[] Student loans (apply for income-driven repayment: $0/month is possible)
[] Insurance premiums (reduce coverage to minimum required)
[] Medical debt (see below — lowest real priority despite what collectors say)

TIER 4 — STOP THESE IMMEDIATELY:
[] All subscriptions and memberships
[] Dining out and delivery
[] New clothing purchases
[] Any automatic payment that isn't in Tier 1-3
[] Gifts, donations, social spending above zero

WHAT MOST PEOPLE GET WRONG:
Medical debt and credit card debt feel urgent because collectors
call. But they can't take your house or put you in jail. Pay
shelter and food first. Always.

Step 2: The actual big cuts

WHERE THE REAL MONEY IS:

HOUSING (biggest expense, biggest lever):
- If you're renting: can you move somewhere cheaper?
  Moving costs $500-2000 but saves $300-800/MONTH
- Can you take on a roommate? (swallow the pride — it works)
- If you own: can you rent out a room? Refinance? Forbearance?
- Call your landlord/mortgage company BEFORE you're behind.
  They'd rather negotiate than go through eviction/foreclosure.

FOOD ($200-300/month for one person is realistic):
- Meal plan around rice, beans, eggs, potatoes, frozen vegetables,
  bananas, oats, chicken thighs, canned tomatoes
- See: Cook From Scratch skill for the full system
- Never shop hungry. Use a list. Buy store brand everything.
- Food banks exist and are NOT shameful. Find yours: feedingamerica.org

TRANSPORTATION:
- If you have a car payment you can't afford: can you sell the car
  and buy a $3-5K reliable used car outright? Eliminating a $400/month
  payment + higher insurance is enormous.
- If you can bike or bus to where you need to go, do it.
- Drive less. Combine trips. Carpool.

PHONE/INTERNET:
- Switch to a $15-25/month prepaid plan (Mint, Visible, etc.)
- If you need internet for job search: use library wifi
  or negotiate your current plan to the lowest tier
- Cancel all streaming. Use the library for entertainment.
  (Libraries have free movies, music, books, and wifi.)

INSURANCE:
- Health insurance: if you lost employer coverage, apply for
  Medicaid immediately if income qualifies. If not, get the
  cheapest ACA marketplace plan you can find.
- Car insurance: raise deductibles to maximum to lower premiums.
  Drop comprehensive if your car is worth less than $5K.
- Cancel any insurance that isn't legally required.

Step 3: The calls you need to make

Most bills are negotiable if you call before you're behind.

CALL SCRIPT FOR EVERY CREDITOR:

"I'm experiencing a significant reduction in income and I want to
keep paying but I need help. What options do you have for:
- Temporary payment reduction
- Deferment or forbearance
- Hardship programs"

SPECIFIC CALLS:

[] MORTGAGE: Ask about forbearance (3-12 months of reduced/no payments)
[] CAR LOAN: Ask about deferment (skip 1-3 payments, added to end)
[] CREDIT CARDS: Ask for hardship rate reduction (many drop to 0-5%)
[] STUDENT LOANS: Apply for income-driven repayment online
   (studentaid.gov — payment can be $0 if income is low enough)
[] UTILITIES: Ask about budget billing and low-income assistance
   programs (LIHEAP for heating/cooling)
[] MEDICAL DEBT: Negotiate hard — hospitals accept 20-60% of the bill.
   Never pay the full amount without negotiating first.

CALL THESE THIS WEEK. Don't wait until you're behind.
Being proactive gets you better options than being in collections.

Step 4: Protect your mental health while broke

Being broke is psychologically devastating. The stress is constant and it makes everything harder.

FREE THINGS THAT KEEP YOU SANE:

- Library: books, movies, wifi, air conditioning, community events
- Walking/running outside: free, improves mental health more than
  most things you can buy
- Cooking: it's creative, productive, and saves money simultaneously
- Community: churches, community centers, meetup groups, volunteer orgs
  all offer free social connection
- Learning: Coursera, Khan Academy, library databases, YouTube —
  free education on anything

THINGS TO PROTECT (even on austerity):
- One social activity per week (free or very cheap)
- Coffee/tea at home (don't cut the ritual, cut the Starbucks)
- Physical movement every day
- Sleep (this is free and the most important thing for handling stress)

THINGS THAT FEEL FREE BUT COST:
- Scrolling shopping sites (you will buy something)
- "Free trials" (you will forget to cancel)
- Driving around to "clear your head" (gas adds up)
- Stress eating (buy what's on the meal plan, nothing else)

If This Fails

If austerity measures aren't enough and you're still falling behind:

1. Can't cover rent even after cutting everything? Contact 211 immediately for Emergency Rental Assistance in your area. Apply for Section 8 housing (long waitlists, but get in line now). Talk to your landlord about a payment plan before you're behind — they'd rather negotiate than evict.
2. Can't afford food? Find your nearest food bank: feedingamerica.org/find-your-local-foodbank. Apply for SNAP (expedited processing in 7 days if you have under $100 in liquid assets). Call 211 for local food pantries, community meals, and emergency food boxes.
3. Can't afford medication? Check needymeds.org for patient assistance programs. Ask your doctor for generic alternatives. Walmart, Costco, and other pharmacies have $4 generic programs. Many manufacturers offer free medication for people who can't afford it — call the number on the drug's website.
4. Income is zero and not recovering? Apply for every benefit you may qualify for: SNAP, Medicaid, TANF, LIHEAP, unemployment. Use benefits.gov to screen for all programs at once. Call 211 for local emergency assistance funds.
5. Debt is piling up on top of reduced income? See the debt-survival skill. Do not pay credit card debt or medical debt before paying for food and shelter. Debt is survivable; homelessness and malnutrition are not.
6. Austerity is breaking you mentally? Call or text 988 (Suicide & Crisis Lifeline). Financial crises are temporary and solvable. Free counseling is available through community mental health centers — call 211 to find one. SAMHSA helpline: 1-800-662-4357.

Rules

• Never moralize or shame. Austerity is a response to circumstances, not a character flaw.
• Be specific about dollar amounts — "cut expenses" means nothing, "$200/month for food" means something
• Always prioritize housing and food above all debts
• Mention that food banks and assistance programs exist without making the user ask
• If the user mentions they can't afford medication, that's urgent — direct to patient assistance programs (NeedyMeds.org) and $4 generics (Walmart, Costco pharmacies)

Tips

• The single biggest expense most people can eliminate: a car payment. If you owe $15K on a car and can sell it for $12K, taking a $3K loss and buying a $4K car saves you $400+/month in payments plus cheaper insurance. That's $5,000+/year.
• "I can't afford that" is a complete sentence. You don't owe anyone an explanation for why you're cutting spending.
• Apply for every assistance program you might qualify for: SNAP (food stamps), Medicaid, LIHEAP (utility help), TANF (cash assistance). These exist for exactly this situation. Apply online at benefits.gov.
• Track every dollar for one month. Not to budget — to see reality. Most people are shocked by where the money actually goes.
• Austerity is temporary. It's a survival strategy, not a lifestyle. The goal is to stabilize, rebuild income, and gradually restore spending as your situation improves.

Agent State

finances:
  monthly_income: null
  monthly_minimum_expenses: null
  runway_months: null
  tier_1_total: null
  bills_negotiated: []
  assistance_applied: []
  expense_cuts_made: []

Automation Triggers

triggers:
  - name: bill_negotiation_tracker
    condition: "any bill in tier 3 not yet negotiated"
    schedule: "daily until all calls made"
    action: "You still have bills to call about. Today: call [next creditor]. Use the script. Log the result."

  - name: monthly_review
    schedule: "monthly on the 1st"
    action: "Monthly money check: What came in? What went out? Are you staying within the austerity plan? Recalculate runway."

  - name: assistance_check
    condition: "monthly_income \x3C 200% federal poverty level"
    schedule: "once"
    action: "Based on your income, you may qualify for: SNAP, Medicaid, LIHEAP, TANF, and other programs. Check benefits.gov for your state."