Life is filled with ups and downs, and sometimes twists and turns. We may have plans years ago that never came to fruition, or maybe they were derailed. And since life isn’t one-dimensional, we can experience tumultuous times in different aspects of our life. For some, it can be something in their personal life. Others might have health concerns, and some might be going through a financial depression.
There are different ways to address and cope with these situations, but a financial disaster can affect the other aspects of your life—making things worse than they are. It can be frustrating, but the reality is that we live in a world where money is king. We need it to eat, pay our bills, or have a stable lifestyle. And if you’re going through financial difficulties, it can feel like it’s a quicksand that only pulls you down as time goes on. But it doesn’t have to be this way; your life is your own, so take action! What actions, you might ask. There are different situations for different people, but here are some to consider.
Know Your Options
When going through a financial difficulty caused by either an accident or a tragedy, many people tend to freeze, and their vision becomes myopic. They forget that there are options out there that can help them. There are systems in place that are designed to help people in need; one just needs to be aware that they exist. If insurance isn’t enough, you can apply for emergency loans to help you at that moment. There are a wide variety of loans such as an FHA loan when you need to secure your mortgage, or even micro-loans through money-lending apps for when you’re really in a pinch. These options are often last resort, but if you’re at a dead-end, they just might help.
Know Your Budget and Stick to It
It’s already given that going through financial depression means having a limited budget, but it’s best to know exactly how much. Find out your daily living expenses—the things that you need to spend to get by every day (of course, minus the things that you don’t need). Plus a bit of an overhead to give yourself some space, this is your daily budget. You can strictly adhere to your daily budget by using budgeting apps that allow you to keep track of your spendings. This way, you can stay within your budget and not trigger any more financial setbacks.
Look at Your Stuff
We tend to collect a lot of stuff, especially when we have the disposable income to use. The result is normally a mass of things we never really use, but were at one point, very interested in. It can be an old cellphone that you ditched in favor of a new one, or a gadget that you bought but never got around to using. Take a look at your things and see if there’s anything of value you don’t use or need. Selling old gadgets or things you don’t need is great for making money in a pinch, either for an emergency or a backup for the future.
Look for Work-from-home Gigs
There’s an influx of companies turning to work-from-home, and more are using freelancers to add manpower to their team. If you have skills in output-based activities, such as graphic design, programming, or writing, there are tons of jobs out there that offer light tasks for part-time pay. This way, you can keep a full day job and work during your free time. This will help in creating a safety zone in your finances. If you’re already working from home, great! Then you can use some of your free time to squeeze in smaller paid work.
Have a Goal
Receiving a tip like “have a goal” or “target something” always sounds vague, but it’s still effective advice. Make a list of small milestones for yourself, such as ‘save money in 2 months’ or ‘pay debt by December’ and similar things like that. This way, you have an active goal to work towards, keeping you in line and motivating you. This also becomes a guide, since you don’t just want to aimlessly save money. Having a financial goal can help you with your current situation, and even help make sure it doesn’t happen again in the future.
Be Careful of Scammers
You’ll probably see your friends share posts about how they’re able to earn thrice the amount they’re earning because of this or that. Or perhaps you’re seeing ads for some new hip investing scheme. Be wary of financial schemes like this, especially ones that sound too good to be true. Often, they truly are. Be wise and realistic, understand that there is no magic solution to your financial dilemma, and only you and your hard work can help you.