A financial emergency can take many forms.
For example, you could be fired from your job, ending your main source of income. Whatever your financial emergency, if you need cash right now, you need to take it seriously!
A financial crisis can be a terrifying event in your life. It can not only change the way you live, but it can also have a lasting impact on your finances if you don’t manage it properly.
Today we are going to go over several steps that can help you get through a financial crisis.
Tips to help you survive a financial emergency
Call a family reunion
When facing a financial emergency, don’t be afraid to let your immediate family know, especially those who live in your household. Assess and face the situation as a team, sit down and let your family know that things are going to be a little different for a while.
Their minds will be reassured knowing that you are fully aware of the situation and are working on a solution.
Reduce your expenses
Create a new budget
In the face of a financial crisis, it’s a good idea to create a new budget. Having a new budget will allow you to assess your current financial situation and see where you are at.
When planning a new budget, be sure to incorporate all of your needs; things you can’t live without. Items such as food, water, electricity, basic hygiene, medicine, rent, and car payments should be included. These items will come first before anything else.
To plan your new budget, be sure to sit down with all of your family and let them participate.
Swap your vacation days
If you’ve saved up vacation days, you might want to consider cashing them out, if possible. Some companies offer to buy back vacation days, which can be useful in a crisis.
Check with your employer to see if they offer this incentive. If they do, take advantage of it. While it is difficult to give up those much-needed vacation days, removing the stress of financial hardship can also be of great benefit. Use your weekends wisely to recover from a busy work week.
Cook from your pantry
Many of us have canned goods and other items in our pantries that we often tend to forget. Knowing exactly what you have on hand helps you avoid buying things twice. While eating green beans for breakfast isn’t ideal, it will save you money.
Be creative with your meals when cooking in the pantry. Go online and search for recipes that require ingredients you have on hand. There are many recipes that can be made out of junk when you think about it.
Eliminate luxury expenses
Take a look at your newly established budget or your latest bank statement and see if there are other ways to reduce your spending. Consider which purchases are actually a luxury rather than a necessity.
While it can be tempting to go to the movies to distract yourself from your financial situation, don’t! Instead, save that money for things you might really need or need in the future.
Items that can often be cut from your budget include; trips to the mall, dining out, gym memberships, unnecessary driving and cable TV. By cutting down on luxury spending, you’ll save more money in case your financial crisis lasts longer than you expected.
Bike to work
Cycling to and from work will not only save you a lot of money on gas, but also on your gym membership! Using your bicycle will reduce wear and tear on your car and may also reduce the amount you pay for auto insurance, based on the mileage driven throughout the year. But remember, if you plan to cycle to work, be careful and always wear a helmet.
If your workplace is too far away to ride a bike, a great way to save money while you’re strapped for cash is to carpool. Carpool to work or let your kids go to school with a friend. Offer your coworker some money for gasoline in return for coming to pick you up. Carpooling not only saves you money, it can also help boost your morale on the way to work. Enjoy a positive conversion and open the possibility of new friendships.
Draw on your emergency fund
If you have an emergency fund, now is the time to use it. After all, the situation you find yourself in right now is the reason you have planned. Make sure you are using your emergency fund wisely; use it only for necessities.
Remember, you can live without going bowling, but you cannot live without food, water, and shelter. Make sure you pay these bills with the money you have in your emergency fund.
Reduce the size of your house
For those facing a significant financial emergency, you may want to consider downsizing your home.
For example, if you live in a three-bedroom apartment and only one more person lives with you, why not upgrade to a two-bedroom apartment?
If downsizing has become inescapable and you are under contract with your landlord, talk to them and let them know the situation you are facing. He or she may be kind enough to waive any penalties for breaking your contract.
You can also find someone to sublet your apartment until the end of your lease.
I need the money now! What do I do?
Sell ââunwanted items
Most of us have unwanted or unused items stored in our attics and garages. While these things are no longer valid or useful to you, someone else could probably put them to good use.
Host a garage sale over the weekend and earn some extra cash to help you get through the tough times. The money you earn can be used for important things like food and rent. By getting rid of rarely used items, you will also declutter your home.
Look for additional sources of income
When you are facing a financial crisis, bringing in as much money as possible is a must. A great way to make the money you need is by finding some form of secondary income. Browse sites that display job openings such as seasonal work. There are lots of side jobs you can do in your spare time, like working at local festivals on weekends or mowing the lawn.
A virtual assistant is an example of an online gig. Help your employer with simple tasks like answering emails, making appointments, doing books and doing research.
Another online job that can help you generate more income is tutoring. Tutor subjects like math, science or English. Tutors are hired, especially during the summer holidays.
Get a loan
If you are really in a bind and need quick cash to pay for certain expenses, you may want to consider applying for a small loan online. Some lenders can provide up to $ 500 within 24 hours.
These funds can help you pay for medical bills, food, rent, and other necessities. You can use the money you need now and pay it off in small monthly or weekly installments over several months.
Ask for help
Contact your lenders
If you have credit card bills and other debt, don’t just let them go. As you face a financial emergency, it can be tempting to stop paying those bills. However, this will put you in even more debt and your credit will likely be ruined. Instead, call each of your lenders and explain your current situation. Many lenders are ready to work with you during tough times.
You can often reduce your monthly payments, and some lenders will even suspend your payments for a few months. This will give you plenty of time to get back on your feet. If you call your lenders and they’re not willing to work with you right away, don’t give up. Ask to speak to a supervisor who will likely have more authority to respond to your requests.
Get additional assistance
There are many programs designed for people who are struggling financially. If you suddenly lost your job, you can claim unemployment benefits and even medical assistance.
There are also local food banks designed to help families when needed. Many of these programs are set up by nonprofit groups and are readily available to anyone. Take a few minutes to call or search for local or government programs that might be of help to your situation.
These are just a few tips that will come in handy when faced with a financial emergency. Remember that when you go through such challenges in life, don’t give up and try to do whatever you can to overcome them.
Once you get out of the crisis, your life will get back on track. Although things can be difficult for a while, stay positive and remember that this is only temporary.