Sometimes life throws us curve balls whether it’s health related, in our friendships, our careers, or our general financial situations. Many of these situations are unavoidable and we must rely solely on our ability to handle these issues and rectify them when possible. The most important thing to remember when handling an unexpected financial problem is to not panic. There are often plenty of ways to handle this and there are ways to reduce the impact of these problems in the future too. Here are our top tips of coping during these times.
Build Up An Emergency Fund
The best way to deal with emergencies it obviously by having the money set aside in case of these unexpected events. Of course, this is easier said than done, and this advice isn’t overly helpful in the moment of having an emergency, however you’ll understand the stress of needing to deal with these problems without backup funds set aside. That’s why we feel it’s important to discuss this piece of advice first as it truly can be a life saver if you find yourself in a bad situation. Whenever you have the ability to do so, set aside some of your income every month, and leave it untouched if possible. Even if you never have to use your emergency fund, knowing it’s there can alleviate a huge amount of anxiety.
Try To Save Money Where Possible
Other than your emergency fund, it’s important to try to put some money aside in general for large purchases. However, when your emergency fund doesn’t cut it, you should have an extra backup of money put away to top those costs up. It’s really not ideal to have to spend money you’ve been saving for holidays and other luxuries but using this money to help you get out of an emergency is much better than the alternative of being unable to pay at all.
Consider A Pay Day Loan For Smaller Expenses
So what are the best ways of dealing with these unexpected expenses when you don’t have an emergency fund set aside, and you’re awaiting your next pay day? You could consider looking into pay day loans, which may at first sound unnerving, but if you take the time to think about whether you can afford to repay it on time or not, and you find an accredited, trustworthy broker like Pay Day UK, you’ll find that it might be a great option. Remember that taking on a loan shouldn’t be a knee-jerk decision and you should properly consider exactly how you’ll repay it. The best situation to be in is to know that if you’d just been paid, you’d be able to afford these expenses. So really, with a loan like this, you’re just postponing the payment and paying a bit of interest on top. Make sure you pay the loan off as soon as possible though, as you’ll find those high interest rates to be quite unsavoury.
Avoid Spending All Disposable Income
If you’re not specifically saving your money, you can still make sure you have some extra cash lying around by cutting back on spending that disposable income. Once we’ve paid our bills and bought our monthly essentials, it’s easy to frivolously spend the rest of that cash on things we don’t particularly need. And while this is important for having an enjoyable life, there’s not reason why you can’t take a step back before each luxury purpose to weigh up whether or not you truly want that item. You’ll find that when you begin to analyse you shopping and spending habits that you may end up with much more money left over each month than usual. This is money that can then be added to your savings, and also means that if you do end up being faced with an unexpected bill, you’ll be better prepared with that extra, disposable income.
Borrowing From Friends And Family
It can be tempting to instantly accept help from a friend looking to bail you out, and the chances are their motives are pure. But there are some things you should consider before going down this path. Of course, it might be a very beneficial choice to accept this charity from a loved one and it could all go perfectly smoothly, however, there are times in which friendships have been ruined over money, especially when repayments haven’t been officially agreed upon. It’s also wise to make sure you entirely trust the person as a loan from a false friend or loan shark will likely spell disaster. It’s important to draw up a repayment plan and stick to it to avoid causing any issues between you and your friend. Ensure you’re both entirely in agreement on how you intend to repay them and the deadline for that repayment and make sure you stick to it stick to it. This includes working out a budget, the chance of overpaying to repay them quicker, and make sure you get all of it down in writing so that this agreement can’t become confused.