What to do When Facing Financial Hardship
Financial hardship is something that most of us will experience at some point in our lives. What seems like a small bump in the road to others may be life-altering for you. Each of our financial lives is entirely different. The good news is that no matter what kind of financial hardship you’re facing, you can get through it.
Remember: Your current circumstances are only temporary.
So how can you overcome financial hardships and better prepare for it in the future? We have some tips to help.
Take a deep breath. When you’re caught up in the emotional roller coaster of an unexpected expense or loss of income, it can feel like there’s no way out. But before you get completely overwhelmed with the negative, take time to think.
Find ways to spend less. Write out a detailed budget of what your bills and responsibilities are and assess where you can cut back on spending. Whether it’s on eating out or extracurricular activities, reduce your budget to the minimum.
Earn extra money. Work overtime if you have the opportunity or pick up a side job. Sell the stuff around your house that no one is using. Be sure to separate this extra money so that it can go toward specific needs.
Ask for help. Reach out to your financial institution if you have auto loans, a mortgage and credit cards. Many times you can temporarily defer payments in the time of an expected hardship. Lenders want to work with you instead of having your accounts fall behind.
Consider a loan. If you have the ability to take out a loan to help you get past your hardship, consider taking one out. This is only a wise idea if you have a low debt-to-income ratio. If you’re already struggling with debt, another loan may not be the answer.
Save for the future. Once you make it past your hardship, it’s time to set yourself up for success in case of another hardship. Learn from what happened and take steps to save more and eliminate your debt.
No matter what your financial hardship is, remember that it won’t last forever. Small steps in the right direction can add up to big change for a better tomorrow. If you’re in doubt about where to begin addressing your hardship, give us a call. Someone from our team would be glad to talk to you and help you create a plan for getting back on track.