People face a wide variety of financial problems. But How to Overcome Temporary Financial Problems? Here is a step-by-step plan for different occasions.
1Rate the situation
Panic will not help find a way out – it will only increase stress. So sit down and think carefully about your situation. Determine the cause of financial tensions. Perhaps it is obvious for example, you lost your job or went on maternity leave.
But it may be so: you noticed that there is not enough income regularly, and you often have to borrow money. The prerequisites may be different: lately a lot of money was spent on treatment, you have accumulated credit card debts and now payments are eating up all the income, you have spent a significant amount on a large purchase or entertainment. It is important to understand the reason and make plans based on the specific situation.
2Identify priority spending
Usually this is the cost of housing and food . You can live without home Internet and some entertainment, but you can’t do without a roof over your head and food. You can save on some products, but try not to skip meals, just to postpone a little more. On an empty stomach, you will not be able to work and make adequate decisions.
Depending on your situation, priority spending may also include medication, kindergarten fees, or something else.
Now insure yourself against unnecessary expenses. If you have a credit card, remove it from your wallet and leave it at home. Delete payment card information from apps and online stores. Pay in cash, trying to meet the planned amount. This will not solve the problem but will stop the drain of funds.
3Make a Realistic budget
Without it, you seem to be trying to navigate in a dark room by touch. Having made a budget, you turn on the light in the room. Now you will not stumble on furniture and do not step on the cat, because the road is clearly visible. A budget will guide your financial decisions and help you quickly resolve Financial Problems.
To make it realistic, track your expenses for 2–4 weeks. Record each purchase in an application or notepad. If you are already taking into account expenses, scroll through the records for the last months. See how much it takes for different payments and purchases. Think about what you can save on now, what to refuse.
Calculate how much you can allocate to pay debts, credit or create a reserve fund.
Set realistic goals. It is unlikely that you will be able to refuse an entire category of expenses or save a large amount on just one. Instead, try trimming each category by at least 10%. You will not notice a big difference but save some money. Entertainment, shopping for pleasure, eating out can be reduced more – up to 90%. Nevertheless, try to leave a little on these expenses, so as not to feel completely deprived of joys.
4Find out if there are benefits for you
In cases of difficult life situations, the state provides social support. Do not dismiss this option. Even if the amount is small, it still does not hurt.
5Try to negotiate a delay in payments
If you realize that in the near future you will not be able to pay utility bills, medical bills or interest on the loan, contact the organization that you have to pay as soon as possible. It is likely that they will agree to make concessions: it is more profitable for them to receive a smaller amount than nothing at all.
Banks can lower the interest rate or defer payment without interest. Management companies may agree to temporarily not charge utility bills. The main thing is not to wait when you owe a lot, but to agree in advance, otherwise, you are unlikely to meet them. And be prepared to collect the necessary documents to confirm that now you are really in a difficult financial situation.
6Take small steps
It is unlikely that it will be possible to return to financial stability in a few weeks or even months. Move gradually: lower your expectations, put off regularly and look for ways to increase your income.
If on any day or month you are out of budget, don’t start scolding yourself right away.
Analyze spending and find the cause of unplanned expenses. Perhaps your door lock has broken or your glasses have broken and the replacement was necessary. Or maybe you succumbed to the temptation in your favorite store and bought something unnecessary. In the second case, try to change your behavior to protect yourself from such expenses in the future.
And do not despair. Remember that such restrictions are temporary and you only need to endure until your financial situation improves.