Accidents, property damage, job loss, sudden health decline, storm damage – a single occurrence can leave a permanent dent in our lives if we don’t have solid rehabilitation plans.
Here you will get 5 ways to deal with any financial crisis efficiently.
Estimate your expenses
Once you have a grasp of the financial challenges, you may need to start keeping track of how much you have to spend daily, weekly, and monthly. Find out if there is any way you can cut your regular expenses. Set aside the money you can afford each week or month only for miscellaneous spending, and save as much as possible.
To make the expense estimation easiest, you can divide your expenses into flexible expenses such as food, groceries, daily use appliances, and fixed costs like rents, utility bills, insurance payments, etc.
Maximise liquid savings
It cannot be stressed enough how important it is to have tangible assets or liquid assets saved to steer clear from any financial emergency. While money is considered the most easily convertible liquid asset, there are much other tangible cash; equivalents such as exclusive art pieces, certain collectibles, real states, inventories, investment assets, partnership unit equities etc.
With liquid savings, you may miss the text benefits in retirement savings accounts, but it can help you quickly get out of any financial hurdle.
Sell some of your belongings
During times of massive financial drought, every dollar counts. If you have old electronics, books, clothes or accessories, you do not frequently use; this is the time you consider selling them. Keep an eye on retail trade-in-programs, resale websites for electronics, or consignment shops so sell your belongings that are in good condition.
You may not raise big money this way, but it might help you get through the day and come up with a more viable contingency plan on the way.
Start a new emergency fund
When you are already dealing with an economic crisis, you might not consider starting a new emergency fund; but guess what? Nobody knows what the future holds, and you always need to be ready to cover any unexpected expenses.
You can keep emergency funds in a separate bank account or entirely an independent bank, which may reduce your temptation to take the money out. You can also keep it in additional funds with high liquidity vehicles like the certificate of deposit (CD) or money market account.
Get a small personal loan
If you need emergency cash immediately, a personal loan can be an attractive financing option. In general, personal loans come with higher borrowing limits, lower interest rates, and flexible repayment schedules.
The best part of a personal loan; it does not require any collateral to be approved and comes with fixed-rate monthly payments, which is much easier to manage. Personal loans are versatile and can be used for any financial emergency at very competitive interest rates ranging from 7% to 35%- depending on your credit score.
Before taking the personal loan, take your time to evaluate the most effective way to manage your debt load. Then, make sure you compare and crosscheck all the offered rates online to get the most reasonable deal.
That being said, it is never easy to go through a big financial loss all by yourself and make logical steps. When you are experiencing financial hardship and have limited means, explore all the details about emergency relief supported by local community service nearby.
Identity Magazine is all about guiding women to discover their powers of Self-Acceptance, Appreciation, and Personal Achievement.
We ask that every contributor and expert answer the Identity 5 questions in keeping with our theme. Their answers can be random and in the moment or they can be aligned with the current article they have written. In that way, and as a team, we hope to encourage and motivate each other, thus inspiring you to Get All A’s.
1. What have you accepted within your life, physically and/or mentally? Additionally, what are you still working on accepting? Now, we’re not talking about resignation, rather stepping into, embraced, and owned.
I am still working on accepting myself without any judgment.
2. Appreciation is everything. What have you learned to appreciate about yourself and/or within your life, physically and mentally? On the other hand OR in contrast, are there elements of who you are that you’re still working on appreciating?
I have learned to appreciate silence.
3. Share with us one of your most rewarding achievements in life? Tell us not only what makes YOU most proud but also share the goals and dreams that you still have.
I am trying to get the best of myself.