71% of all the people in the world live one day away from poverty. Read that again! 71% are ONE day away from poverty…. When living from paycheck to paycheck, a single financial crisis can rob you of everything you have. You may have some options, but you have to be ready ahead of time if you want to avoid allowing a financial crisis to leave you completely barren.
Plan A Better Budget
We do not make the best financial decisions when we’re stressed. You want to already have an emergency budget in place with the help of a personal finance app. That means you have to know eaxtly how you are spending your money right now and know where you can scale back.
Create A Safety Net
I know, putting a savings aside while on a tight budget is the HARDEST thing to do, there are always at least 30 other bills you need to put that money towards. However, from personal experience, I know it can help remove the stress from the budget if you have a small fund set aside just in case.
By consistently contributing (even $5 a week adds up to over $250 in a year) to an emergency fund, you can build some protection for yourself. If you have a little more spare cash from the paycheck, then life insurance can guard you against the loss of an income due to a death, which can be one of the most devastating events for your finances.
Start A Side Hustle
If you have the time to spare, then it might be wise to have an opportunity for an extra income ready at all times to help you get over the hump. Finding a side hustle or working from home through the internet can offer real breathing room. Pro tip – schedule your side hustle as either number of hours you work or amount of money you make, and stick to that schedule so that you are bringing in the money you need.
Declare Your Assests
Listing all the assets to your name means you always know that you have options to get extra funding when you need it most. You can trade in your car for an older model, sell gold and silver from the home, or start putting old clothes on auction sites. Most importantly, you can sell a house fast for a little less than you might get on the market.
While you shouldn’t ignore the reality of a bad situation, it’s important to not let stress defeat you. Believe that your hardship is only temporary and that you are resourceful enough to get through it. Use these techniques to cope with financial stress, so that you can make better decisions with a cooler head.
There’s no denying that, regardless of what strategy you use, getting through the tough times is never easy. However, with these tips you may be able to create some preparations to get you through it. Here are some additional resources from Amazon that can also help you –
Yes, I include affiliate (ad) links in all my blog posts, however it is only with companies and products I highly recommend. I receive a small commission if you buy through my links, so thanks in advance! Lydia Y-S