You don’t need us to tell you how much advice is out there about the need to save money. Every other financial advice blog out there pushes this point home until they’re blue in the face. The trouble is that, until now, you’ve only ever paid lip service to advice like this. You’ve always known about the importance of savings, but you’ve always seen them as something to save for another day.
Sadly, another day never came, and you’re now in the worst position possible – you’ve hit monetary difficulty without a saved cent to your name. It might be that you’re facing unexpected medical bills, or perhaps you’ve got an expensive problem at home. It might even be that you’ve been fired or need to take time off work. Either way; there’s no time squirrel money away now. To make things even more complicated, you can’t find a single article which tells you what to do when the worst happens with no savings in place.
In fairness, all those financial blogs probably took it for granted that you followed their saving advice in the first place. If you didn’t and you need help, though, you’ve come to the right place. We understand that, sometimes, you don’t look after the money the way you perhaps should. That’s why we’re going to consider a few steps you can take to get through this difficult time.
Develop a plan of action
If your lack of savings should have taught you anything, it’s that winging it doesn’t work out well in this life. Instead of approaching your issue with no idea of what you’re doing, then, you must develop a plan of action. This will be different depending on your situation, but it’s always equally important. It may be that your plan of action involves pushing for your health insurance provider to cover your medical expenses. If you were fired, your plan of action may be getting your job back, or even seeking compensation through unlawful termination lawyers where applicable. Your plan may even involve seeking new income or developing a job-hunting routine for efficiency.
It doesn’t matter what form this takes. The point is that you write it down and stick with it. This can help you to organize your thoughts and avoid spiraling into panic. It can also make sure that you’re moving towards the right end game. That can reduce your financial distress and any potential debt. You may even find it useful to develop a timeline for your plan so that you can be sure you’ll stick with it and take action necessary in the shortest time possible.
Know what money you do have
Even when we think we’re at financial rock bottom, most of us have at least some money. It may be that you have a minuscule amount left in the bank. Or, perhaps you’ve got some cash stashed at home. In the worst-case scenario, you could even sell some stuff that you don’t need around the house. This is all the money you have, even if you don’t realize it.
To make sure that you can weather this period, it’s vital that you take note of this budget. It may be $10 or $50; it all counts. Once you know precisely what you’ve got, you can start budgeting your way through this mess.
If you’re without income, for instance, knowing the money you have to hand can help you make it last longer. It can also be a guideline for the period you have to play with. Getting on top of what you’ve got can also help if you’re facing excessive bills. Once you take note of where you’re at, after all, you’ll be in the best position to realise where you need to get to take that pressure off.
Do what you can to boost the money you have coming in
Boosting your current income is about the best way to deal with any financial crisis when you don’t have savings. Once you turn your mind to it, it’s incredible how much you can earn on the side. Something as simple as signing up for survey sites could see you earning small amounts on the same day. Equally, as mentioned, selling stuff around the home can take you far. You may even find that accepting small tasks in the homes of friends or family could see them helping you out. You could also take on some extra hours at work for a set period or, if you’ve been fired, apply like crazy for new positions.
Taking steps like these can help you to feel as though you’re moving in a positive direction to solve this issue. It can also save you from getting into debt anytime soon. We understand that it’s tempting to panic and do nothing in these situations, but don’t make that mistake. Instead, get proactive in these ways and see how much difference they make to your situation. Before you know it, you may be back on sound financial footing.
Take this chance to learn
Once you’re coming out the other side of this financial struggle, it’s essential that you learn from it. Don’t simply find a solution and then forget this ever happened. In many ways, you should let this be a warning to you of how vital savings are in your life. You could even keep hold of some of those extra income methods to help you get started. We understand that it isn’t easy to save, but this doesn’t need to be a hard task. Even something as simple as setting aside $100 a month to start with can make a change. That’s money you probably spend without even realizing most months! After you’ve saved that much for a year, you should find that you’re able to weather the next disaster much easier. That, in turn, can lead you to a stress-free, debt-free lifestyle moving forward. You certainly won’t need to worry about money half as much ever again!