Firstly, cling onto this; You are not alone in this; nearly half a million people are confronted with financial turmoil. Read that again, and feed this in your mind.
Get out of the victim trap and embrace these disguised opportunities to unveil your hidden attributes. Remember, diamonds are created under high temperature and pressure.
Financial distress is one of the harsh realities of this life; things would have been much simpler if money wasn’t the focal point. We would have grabbed several opportunities that wouldn’t be possible without money and living a fulfilling life. Many people wouldn’t give up on their lives when challenged with financial stress or developed adverse health issues. Most marriages wouldn’t have dissolved. In a nutshell, life would have been a bed of roses.
Would this, however, unearth incredible hidden resilient abilities and drive human growth? If this were the case, many outstanding individuals would not have been created and achieved recognition during the failure period. Need an example? J.K. Rowling! Is there anyone who hasn’t heard of her before? A British author who has written best-selling fiction series. However, Rowling was an impoverished, miserable, divorced single mother who was also studying while writing a novel. Additionally, many publishers turned down Harry Potter, which is certainly hard to believe. But, because of her willpower and dedication, she is one of the most well-known authors today.
It demonstrates that financial achievement often results from economic adversity and other hardships.
It was only a small effort to help you feel better in the middle of your financial troubles. Because the worst is financial stress, let us delve into how to deal with financial catastrophes proactively. These ten strategies were gathered from various people who have overcome similar challenges in their life, indicating that they have been tried and proven.
Step 1; Diagnose the problem
When afflicted with any obstacle, most of us, instead of being isolated and ‘wish’ that things would get better on our own or assess the intensity of the problem, map out a strategy and stick consistently to it to achieve recovery. However, which method has more probability of success? The second one! Determining circumstances such as how bad it is and devising a plan to overcome them is the most crucial step in financial crisis management. People we had conversed with told us that they would’ve gotten out of the crisis faster if they had known about this step before.
Step 2; Why did the financial crisis occur?
Common reasons for the financial crisis are loss of income, business closure, pandemic, death of a breadwinner, bankruptcy, loss of investment, illness, or emergency.
Whatever the reason, the adversity has arrived, and you are financially distressed. In this scenario, thinking realistically and detecting the root cause of the problem is the nucleus of recovery. Another golden piece of advice we received was ‘stop blaming people and conditions around you; instead, own the situation, since it gives you the power to overcome adversity.
Step 3; Cut down your expenses
When you track your spending, you may realize your hard-earned money is often spent on something you don’t need. However, this strategy may not be easy to pursue since many non-essential items have now transformed into necessities in our minds. So, it would help if you were rational and honest while monitoring your spending and focusing on needs and direct survival items.
Step 4; Make a revised budget
When dealing with the financial crunch successfully, it’s essential to make a ‘revised’ budget and prioritize necessities for the recession; after overcoming that, you can go back to your luxuries with mindful spending.
Step 5; Seek support from your acquaintances
During a challenge, what we deeply need is emotional and physical assistance. Be it encouragement, motivation, or money lending, these tools are compelling in changing your condition.
Please communicate with your close ones and ask them for any available opportunity or keep you in mind for any vacancy.
Step 6; Explore government relief programs
Fortunately, the government has introduced many emergency assistance programs to provide urgent funds. Consider making a list of all the available government programs and apply for them. Look out for the eligibility criteria and make sure to meet the requirements. Here are some of the best assistance programs.
- Government food programs.
- Government help with utilities.
- Government help with housing costs.
- Government medical assistance.
- Nonprofit food assistance programs.
- Help with utilities from nonprofits.
- Nonprofit housing assistance for mortgage and rent costs
- Help with medical expenses from nonprofits.
Step 7; Apply for a loan
If, in any way, you are not eligible for the grants, then getting a loan with a lower interest rate can be an excellent option for you. In addition, several banks offer emergency assistance loans to people struck by the financial crisis.
Step 8; Negotiate your bills
Here comes the most critical skill: negotiation! Bills and their mounting amount can be daunting. However, you can use your negotiation skills and reduce the sum. One of the worst outcomes of financial strain is a negative credit score; ensure it doesn’t get impacted severely.
Step; 9 Find a side gig
For the time being, look for ways to earn extra cash if your primary source of income is affected. It could be freelancing, tutoring, eBooks, or anything.