No one wants to face a financial difficulty.
Unfortunately, all it takes is a medical emergency, a problem with the family car, or some similar event to put you in the hole.
How you choose to deal with the current crisis will depend on how much money you need and your ability to secure the funds to deal with the situation. Financial troubles can be stressful, but having a plan of action beforehand can save your wallet, and nerves, from unnecessary stress.
Here are three possible solutions to help you find your feet again in the event of a financial crisis.
Now is a good time to determine if some of those budget line items can be reduced or possibly eliminated from your monthly and yearly expense report. For example, have you set aside funds to go out for lunch every workday? Now is the time to think about cutting back to one outing a week and take a lunch from home the rest of the week. Depending on how much you normally spend on lunches, you could save a significant amount of money by the end of the month.
Dig a little deeper and you are likely to find a few other ways to trim your current expenses. Instead of having someone mow the lawn, do the job yourself. Consider carpooling as a way to reduce your gasoline expenses. Now would be a great time to start planning your meals before you do the grocery shopping. With a little creativity, it is possible to adjust the budget and still live comfortably.
Simple techniques like switching off lights in unused rooms, turning the thermostat off and opening up the windows during summer months, and taking shorter showers are small tricks that will save your monthly utilities.
Until you deal with the current financial crisis, eliminate all spending for new items unless they are absolutely necessary. The only thing you need to take care of is the basics. That means focusing on things like paying the mortgage, making the car payment, and buying food.
Make a list of necessary expenses you cannot do without. Then make a list of items you can do without while you work on getting your budget back in order. The expenses you forgo can be big or small, just be sure to stick to your plan throughout the coming weeks and months.
Do not take on new debt for things that you don’t need, even if those items happen to be on sale. There will be another chance to buy a new television for the family room, or catch a winter coat on sale. Until you are back on firm financial ground, your focus is on paying the debts you owe, preventing your credit rating from suffering, and slowly working your way back to a measure of financial stability.
Sign up for a complimentary consultation for help thinking through your financial options. A second opinion can help you review the pros and cons of decisions on the table and think through all the consequences.
Often working with an objective, third party can shine a light on solutions you may have overlooked. For example, financial experts like Tracy Rawle and his Check City team will look at the amount of net income you generate each month and talk through potential solutions.
Remember that you’ve been in tight spots before and managed to come out on top. Now is not the time to let one crisis derail your life. Step back and take a good look at your circumstances, and what resources you can utilize to resolve the matter. Once you have a plan of action in place, follow it through. In less time than you thought possible, the crisis will be over and you’ll be in better financial shape than ever.