A deteriorating financial situation is undoubtedly one of the most stressful situations an individual can go through, as covering basic expenses such as buying food, paying rent, or maintaining electricity becomes nearly impossible. However, there are steps that can be taken to regain control of your financial situation. Forbes’ report by True Tamblyn offers practical tips for cutting expenses, accessing aid, and generating quick income.
1. Evaluate the current financial situation
The first important step is to understand the extent of available financial resources and commitments. It is necessary to make a list of all available assets such as cash, bank accounts, or any liquidable property such as electronics or jewelry.
The next step is to track all monthly expenses and categorize them into essential and non-essential. According to a Forbes report, this will allow you to create a survival-centered budget and be able to identify where expenses can be reduced.
2. Reduce expenses quickly
This is a critical step in managing the financial crisis. It is recommended to cut unnecessary expenses such as streaming services or gym memberships. In addition, you should try to negotiate with providers to reduce monthly payments.
Some providers may be able to offer flexible payment plans to individuals experiencing financial difficulties.
3. Access to emergency aid programs
There are many government and community programs that provide financial assistance. Among these programs are unemployment insurance, food purchase support programs, and health care programs for individuals with limited income.
4. Generate quick income
Even with reduced expenses and access to aid, there may still be a gap between financial resources and needs. One way to generate quick income is to sell unused items, such as electronics or furniture, through multiple platforms such as Facebook Market Place and others. It is also advisable to explore options for temporary work or work in the “gig” economy, such as driving cars or running simple errands.
5. Preparing for the future
After achieving short-term financial stability, it is important to start building a strong foundation for long-term financial stability. The Forbes report points out the importance of building a financial safety net, such as providing an emergency fund that covers 3 to 6 months of basic expenses.
