A financial emergency can take many forms.
For example, you could be fired from your job, which would end your main source of income. Whatever your financial emergency, if you find you need money now, you should take it seriously!
A financial crisis can be a terrifying event in your life. Not only can it 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’re 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 you face a financial emergency, don’t be afraid to tell your immediate family, especially those living under your roof. Evaluate and confront 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 working on a solution.
Reduce your expenses
Create a new budget
When faced with a financial crisis, it is 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 stand.
When planning a new budget, be sure to include all your necessities; the things you can’t live without. Items such as food, water, electricity, basic sanitation, 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 members and let them participate.
Exchange your vacation days
If you’ve saved up vacation days, you might want to consider cashing them in, if possible. Some companies offer to buy back vacation days, which can be useful in times of crisis.
Check with your employer if they offer this incentive. If they do, take advantage of it. While it’s hard to give up those much-needed vacation days, taking the stress out of financial difficulties can also be very beneficial. 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 pantry that we often tend to forget. Knowing precisely what you have on hand helps you avoid buying twice. Although eating green beans for breakfast is not ideal, it will save you money.
Get creative with your meals when cooking from the pantry. Go online and look for recipes that call for ingredients you have on hand. Many recipes can be made from odds and ends when you think about it.
Eliminate luxury spending
Review your newly established budget or your latest bank statement and consider if there might be other ways to reduce your expenses. Consider which purchases are actually a luxury rather than a necessity.
While it may 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 might need in the future.
Items that can often be cut from your budget include; trips to the mall, restaurants, gym memberships, unnecessary driving, and cable TV. By cutting back on luxuries, you’ll save more money in case your financial crisis lasts longer than expected.
Bike to work
By cycling to work, you will not only save a lot of money on gas, but also on your gym membership! Using your bike will reduce the wear and tear on your car and may also reduce the amount you pay for car insurance, depending on the mileage used 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 to ride a bike, carpooling is a great way to save money while you’re short on cash. Carpool to work or let your kids go to school with a friend. Offer your colleague some gas money in exchange for picking you up. Carpooling not only saves you money, it can also help lift your spirits on the way to work. Enjoy a positive conversion and open the opportunity for new friendships.
Tap into 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 why you planned. Be sure to use your emergency fund wisely; only use it for necessities.
Remember that you can live without going bowling, but you cannot live without food, water and shelter. Be sure to 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 unavoidable and you are under contract with your landlord, talk to them and let them know about the situation you are facing. He or she may be kind enough to waive any penalty that comes with breaking your contract.
You may also be able to find someone to sublet your apartment until the end of your lease.
I need money now! What do I do?
Sell unwanted items
Most of us have unwanted or unused items stored in our attics and garages. While these things are no longer useful or useful to you, someone else could probably put them to good use.
Host a garage sale on the weekend and earn extra money to help you 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 declutter your home at the same time.
Look for additional sources of income
When you face a financial crisis, it is essential to bring in as much money as possible. A great way to bring in some much-needed cash is to find a secondary form of income. Browse sites that post job openings such as seasonal work. There are plenty of side jobs you can do in your spare time, like working at local weekend festivals or mowing lawns.
An example of an online side gig is a virtual assistant. Help your employer with simple tasks such as answering emails, making appointments, keeping books and doing research.
Another online job that can help you generate more income is tutoring. Tutor of subjects such as math, science or English. Tutors are hired, especially during the summer holidays.
Get a loan
If you’re really in a pinch and need quick cash to pay for certain expenses, you might consider applying for a small loan online. Some lenders can provide up to $500 within 24 hours.
These funds can help pay for medical bills, food, rent, and other necessities. You can take the money you need now and pay it back in small monthly or weekly installments over several months.
Ask for help
Contact your lenders
If you have credit card bills and other debts, don’t let them go. While you’re dealing with a financial emergency, it can be tempting to stop paying those bills. However, this will put you further into debt and your credit will likely be ruined. Instead, call each of your lenders and explain your current situation. Many lenders are willing to work with you during difficult times.
You can often reduce your monthly payments and some lenders will even suspend your payments for a few months. This will give you enough time to get back on your feet. If you call your lenders and they don’t want 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 extra support
There are many programs for people facing financial difficulties. 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 in times of need. Many of these programs are run by non-profit groups and are easily accessible to anyone. Take a few minutes to call or research local or government programs that might be helpful to your situation.
These are just a few tips that will come in handy when you face a financial emergency. Remember, when you go through such challenges in life, don’t give up and try to do everything in your power to overcome them.
Once you are out of the crisis, your life will resume. Although things may be difficult for a while, stay positive and remember that this situation is only temporary.