Financial setbacks come in many forms. It can be an expensive household repair, a job loss, or even a happy occasion like a wedding or growing family. It’s impossible to plan for every financial hit you will take in your lifetime. The question is: What are you going to do about it? If you’re hit with hard times, keep these five tips in mind…
- Don’t panic
Panic is the first reaction many people have when experiencing a financial setback. It won’t be easy, but do your best to remain calm. This will allow you to think more clearly and resolve your deficit quicker. Remember, as difficult as things seem, they will always look a little better after you’ve done some levelheaded planning.
- Crunch the numbers
Problems won’t disappear when they’re ignored, especially not financial problems. As difficult as it might be, sit down and figure out exactly how much more money you will need in order to cover your new expense, or to fill the gap of an income loss.
- Reduce your spending
Figure out which expenses you can trim. Before cutting your budget in half, take the time to prioritize. Make a list of all the expenses you cannot do without and the ones that would be irresponsible to neglect. For example, don’t skip mortgage payments or neglect your insurance premiums because you’re short a few hundred dollars. Instead, take an honest look at your remaining expenses and see where you can cut back.
- Contact your creditors
If you absolutely cannot make some of your minimum monthly payments anymore, contact your creditors before they come calling on you. It is always best to be up front about your financial situation. Most creditors will be happy to work out a reasonable payment plan with you.
- Be proactive
Harness the urgency you feel now to get into the habit of building up an emergency fund. As soon as you are back on your feet, start saving money. Experts recommend that you have 3-6 months worth of living expenses saved up in case you can’t work for any reason. Knowing you have that money to fall back on will take the stress out of these situations.
Do you need help recovering from a financial predicament? Contact GreenPath. SeaComm’s partnership with GreenPath Financial Wellness can provide you with access to debt management services, free one-on-one financial counseling, and financial education tools. Click here or call (877) 337-3399 to discover how this program can lead you to a brighter financial future!