Life has a way of throwing curveballs at you – an unexpected appliance breakdown, a car accident or a medical emergency – in a way that can put a financial strain on everything. When setbacks arise, and you are forced to juggle your finances, it’s understandable if you feel overwhelmed. But there are practical ways to manage the pressure and regain control. It’s important to know this – and to be aware of the steps you can take.
Reassess and reprioritise
In any budget, there will be priority costs, and if you have suddenly seen a chunk cut out of your expected incomings, it may become a case of looking at which outgoings can be cancelled or paused. Naturally, you need to make rent, and you need to buy food; keeping a roof over your head and staying fed are essential priorities. Then, it may be a case of prioritising expenses that allow you to keep earning; this may mean internet and phone costs and keeping a car on the road. Monthly subscriptions can usually go, at least for the time being until the picture is more settled.
Tap into community resources
Everyone’s situation differs, but in the face of a financial emergency there is a decent chance that there are local resources that can help you with the problems you are facing. These can include food banks, mutual aid groups and other community organisations that offer temporary support. You may just need them on a one-off basis, to bridge the gap while your situation is uncertain. Regardless, don’t ignore this option because you think you’re “taking advantage”; this is quite literally what they are there for.
Explore lending options
If borrowing becomes necessary, taking time to explore your options is essential. You need to:
- Understand what you are signing up for (interest, fees and repayments)
- Only borrow what you are going to need
- Put any borrowed money in a separate pot from other money; any you don’t use can be put immediately towards repayment
For people exploring where to get installment loans online, make sure you are securing all the paperwork and repayment schedules so that you are able to meet the terms of the loan. As a rule, the shorter the term of the loan the better, but don’t sign up for monthly payments you can’t make just to make this happen.
Build back with intention
Once you have the situation under control, your thoughts will turn to making sure it doesn’t happen again. At this point, there is no use being unkind to yourself; financial setbacks happen to us all and they aren’t a reflection of failure. Going through these situations is the ultimate learning experience, so when things are back on an even keel it’s the perfect time to implement a contingency fund into which you pay every month. This should not be taken from money you need for bills and food – just an amount from whatever you have left over, if anything, to soften any future blows.
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