10 Tips that can help you Through a Financial Crisis

Oct 20

At one point in our adult life, we have had our fair share of financial troubles. Some see this as a daunting point of our life. You would feel hopeless, helpless and depressed but the best thing about it is that you can easily get out of that situation with nothing but hard work, dedication and discipline. We do hope you are reading this article because you are curious about how to properly manage your finances, not because you are going through this turmoil in your financial life. Here are some tips that would help you in dire need:

 

  1. Be realistic. Being honest about your earnings and expenditures is the first step that you need to do. Have a more realistic budget to help you control your monthly expenses properly.
  2. Never buy something out of impulse. Realizing how much your real budget is, you need to spend less on those “wants” every month. Don’t buy something you don’t need or you don’t plan to buy in the future.
  3. Don’t go on SALE days. Sales are the major cause of impulse buying and you need to avoid them if you are on a tight budget. Most stores just mark down their prices and put them on “sale”, tricking consumers that they got a bargain out of it.
  4. Get medical insurance if you can. If you don’t have sufficient savings for rainy days, then you ought to have some or get yourself a medical insurance. Medical emergencies are something that you would really need to save up for and insurance can help you out on during these hard times.
  5. Purchase your items with “real time” money. This is probably a sin that most of us had committed at some point. Don’t count your chicks if they haven’t hatched. Don’t rely on your future income to budget your money because, there is still a huge chance that it won’t materialize and you’d end up with nothing at all.
  6. Avoid any large rent or house payments. If there is a need to refinance your home for a more flexible mortgage plan, then you need to do just that. Some experts would advise you to pay more every month to save on interest but if you can’t do it, there’s no reason to stretch your budget to accommodate huge house payments.
  7. Avoid cosigning loans or guaranteeing someone for a loan. At this point, you would want to stay away from any extra expenses such as loans (only if you need it). There is no assurance that your acquaintance would actually pay as well.
  8. Avoid joint obligations from individuals with questionable spending habits or credit ratings. Even if he/she is your significant other or spouse. If they don’t pay, you would be responsible for the rest of what’s left of the debt or tax bill.
  9. Don’t make any rash investments. We know how tempting it can be to invest what’s left of your savings to stocks and real estate but as of the moment, avoid these rash investments. You are more vulnerable to these “upsells” so watch out.
  10. Find a way not to spend money. You would want to save your income as much as possible. For example, instead of taking your significant other or spouse on an expensive restaurant, you can have a picnic by the beach or a camping trip to a nearby spot.

 

Out of these tips, you would be left with a small amount of cash but don’t underestimate the power of time and discipline. Tabulate your monthly expenses, your improvements in controlling your expenditures and save any money you have left or at least 10% of your earnings for the next 6 or so months. You would have money for rainy days and you would realize how much you had earned.

 

Irina Webandyou is a finance writer for many popular websites. She contributes towards Instant Payday Loans website. She loves covering news about personal finance, debt, taxes, investing and many other business things.