What To Do When Rebuilding Your Finances After a Disaster
No matter what you do in life, there will always be rough patches you’ll need to get through. Whether you’re alone or with a significant other, sometimes money can be tight or even impossible to get back into stable terms. However, the road back to safety is often impossible to find because backtracking is an almost impossible action. But moving forward is still possible no matter how deep in the ditch you get. What matters is that you start taking account of what went wrong and start learning about how you can get yourself on a more secure track. Here are some of the tips you can use in order to get back on your feet financially.
Get Rid of your other Budgets and Set up a Safer One
If you’re stuck in a financially unsafe position, the first move you need to take is to cut out the rest of your budgets. If you have a vacation, luxury, or extra spending account you like to squirrel your cash into. It’s time to drop the accounts altogether in order to centralize your budget. After that, it’s all about damage control by figuring out which costs take priority and which ones can fall by the wayside. You’ll also need to set up a budget that you can fall upon when you need to address a serious emergency. Remember that this is transitory and the fund won’t be a permanent thing; you just need to maintain it until you’re finally in the clear.
Don’t get rid of your Preventive Safeties
When you cut out every other budget you deem unnecessary, you may find that certain items in your life may seem like you can drop them. However, no matter what you do, never cut out your health insurance. Sure you can drop your car and its coverage in favor of public transport, but if you get into a physical accident or come under sickness, very few things can help you out. Don’t cut that cost out because it may help you in the future.
Sell your Old Stuff and Buy Used
It may not be glamorous, but making and creating deals can give you some breathing room and even spending cash if it comes down to the wire. Think about all the stuff in your home and look to the items you consistently use. Everything else may be secondary, so consider selling some of these items online at decent prices. You may find that other people need the deals and items you can offer them. If you need a new phone or any other item, then don’t look for new products because they can be pricey. Instead, look for the people who have the same need as you do. This is a great way to cut down on costs while still being able to afford a few new things of your own.
Bankruptcy is Viable only up to a Point
Many people say that bankruptcy is a totally viable option for when you have too many debts. However, if you opt for this route, you have to be aware about how damaging it can be. If you have a horrible credit score, or maintain too many bills at any one time, Bankruptcy will destroy your reputation as a trustworthy. So, before you do this, check out FICO’s credit calculator so you can assess the potential damage.
Though the road may be long, all you need to do is to have patience. Keep your head down and save every penny you can. Most importantly, keep working hard because your job security is one of the few things you can fall back upon.
Photo Attribution:
Featured and 1st image by mapichai / freedigitalphotos.net
2nd image by Stuart Miles / freedigitalphotos.net
3rd image by jesadaphorn / freedigitalphotos.net
