Navigating Troubled Waters - 5 Strategies to Cope with Financial Challenges

Photo by Ben White on Unsplash

Emergencies and unexpected events always seem to hit when you can least afford them, and can be devastating both emotionally and financially. These are the kinds of things you don’t like to think about, but by ignoring the real possibility of a crisis and living without a security net for such events, you can find yourself in a financial bind when they do happen, adding to the stress and worry. Here are five strategies to cope with fiscal challenges.


Build an Emergency Fund

An unexpected layoff or the death of a loved one can cause bills to rise at a time that you need time off work to get things in order. With a rainy-day fund to fall back on, you can at least breathe a little more easily, knowing that you have a financial buffer to cope with the immediate economic pressures. If you haven’t managed to build a nest-egg and need to take out a small online cash loan, be sure to find trusted sources that won’t take advantage of you in your time of need. Many online loaning officers offer lower interest rates that can help temporarily without causing long-term pain.


Ask for Help

You shouldn’t have to deal with a crisis alone. Don’t be afraid to ask friends and loved ones for help. Many people are happy to do whatever is necessary both financially and practically, to help a person in their hour of need. If immediate family and friends are not sufficient to help you cope with the challenges, consider crowdfunding as an alternative. Being transparent on the internet can be painful, but with social media, people from all over the world can help when times are tough.


Downsize

When times are tough, it can be the perfect opportunity to assess your assets and possessions and determine whether you could benefit from letting some of them go. Perhaps it’s that extra car that sits in the garage and does very little other than accumulate insurance, DMV and other fees. Maybe you have a self-storage locker filled with stuff you’ve not looked at for years. Liquidating these superfluous items from your life can not only bring in a short-term injection of cash, but it can also eliminate ongoing expenses that impact your bottom line.


Live Simply
If you are in a bind, now is the perfect time to simplify your life and live with the bare necessities. Learning to live simply and cut costs can help you during this time of need. It can also establish a lifetime of less stressful living habits that can keep putting money in your pocket in the future. We can find out what the most important things are to us in times of emergency, so feel free to let go of the unnecessary expenses in your life and focus on what’s important.

Be Open
A stressful event isn’t a good time to close yourself off from those who care about you. Learning how to talk to your spouse about money is a skill you will need at this point. With emotions whirling due to challenges such as being laid off or a scary diagnosis, the last thing you want to do is let lack of communication tear you apart. You and your loved ones need each other now more than ever, so keep the lines of communication open and share your thoughts often.


Nobody likes to think about the “what ifs” but having a plan in place can make them far more manageable. By keeping these strategies in mind, you and your family can better navigate your way through stressful financial waters.


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