First

How to handle your money: step-by-step

Reduce expenses, set realistic goals

1. Pay rent/mortgage
Include renter's or homeowner's insurance, if required

2. Buy food/groceries
Depending on the severity of your situation and needs, you may wish to prioritize utilities above these.

3. Pay essential items
Power, water, heat, toiletries, etc.

4. Pay income-earning expenses
Necessary transportation expenses, possibly Internet/phone, anything required to continue earning income

5. Pay health care
Health insurance and health expenses

6. Make minimum payments on all debts and loans
Student loans, credit cards, etc.

Next: build an emergency fund