From financial history, we see that a financial crisis can strike unannounced at any time. Having a profound impact on all our lives, an emergency could strike in ways such as sudden job loss, unexpected expenses and so much more.
Therefore, it is always important to be prepared to deal with financial turmoil and have the right strategies in place to deal with such issues. However, many still struggle to manage their finances during tough times and take on a lot of financial stress in the process.
To help you deal with this and make the best of a bad situation, we bring you this article. Discussing strategies to protect yourself from financial damage and help you weather the storm, we aim to help you come out stronger and better.
Regardless of whether you are struggling with debt or the unexpected burden of expenses, these tips will help you manage your finances. All you need to remember is to stay positive and focused and take necessary action.
Understanding the Impact of an Emergency on Your Finances
Unfortunately, individual financial crises happen to people every day. Whether it’s an unexpected bill, vehicle breakdown or job loss, we all have weeks where it all goes wrong.
That said, wider financial turmoil has even further reaching effects. Affecting jobs, businesses, borrowers and lenders, a financial emergency can damage your financial health in many different ways.
A financial crisis can force you to dip into your savings and retirement fund. Not only does this put a halt to savings, but may see you take on additional debt.
Furthermore, it can also make it more difficult to access credit, leading to greater stress and anxiety.
That’s why, in order to mitigate this impact and effectively deal with it, it is essential to remain calm, stay informed, address the issue and plan ahead.
Creating a Budget and Sticking to It
Your first step is to start planning ahead. Whether you’ve found yourself in a tough spot or things are going well, budgeting your expenses should be practised, regardless. Helping you track your expenses, prioritise your spending and make provisions for savings, a budget can act as a pathway to financial stability.
If you aren’t sure how to do it, read on.
Step 1: List your essential expenses like rent, food, and utilities and then discretionary expenses.
Step 2: Try minimising them by setting a limit to each discretionary expense.
Step 3: Eliminate all spending habits you can survive without
Step 4: Try to find alternate sources of income like renting a room, picking up extra hours, house sitting, etc.
By following these simple steps, and sticking to them, you allow yourself to “plan” your way through the emergency. However, you need to make sure that you are disciplined and motivated to ensure the best results. Read our piece on budgeting to get a more detailed understanding of building a budget.
Exploring Low Credit Loan Options
Whilst a ‘low credit loan’ isn’t something most people want, the truth is that we’re here for you, when you need us.
Helping you bridge the gap between income and expenses, our More Than Your Score loans can help you make it through tough times.
Managing Debt
With the financial stress of balancing income and expenses, managing debt during an emergency can be a challenging task. However, it is just as crucial to protect your financial stability.
Luckily to manage debt, you can resort to a few simple strategies that can help you stay afloat during tough times. Here are some tips to follow:
- Prioritising your debt payments based on interest rates
- Negotiating with creditors or debt settlement
- Exploring government supports programs
- Reaching out to financial support
Choose Salad Money When You Need Us Most
Regardless of whether it’s a major life event, global economic turndown or day to day struggle, financial issues can be difficult to deal with.
However, with Salad Money, you can rest assured that when things go too far, we’ve got you covered. Offering relief to individuals struggling with financial issues in hard times, we are dedicated to providing you with the right resources to get back up and running.
With our More Than Your Score loans, we aim to provide you with personal loans that can help you deal with your emergency cash needs effectively. Our loans are specially designed for public sector and private employees who have been wronged by the traditional credit score system.
Using a unique affordability assessment system to offer you the loans you deserve regardless of your credit score, we have your interest at heart.
To learn more about our services, click here and for more financial tips and insights, visit our blog page now!
