In the end, it can be hard enough to make ends meet on a decent wage, but when the times get tough and the money just is not there to meet the need, a person can easily despair. It can be very difficult to cope with financial problems.
There is no real magic formula for coming up with on-the-spot emergency cash. There is a good deal of thinking through and the putting of a good plan into action if you have it made. If you can do that, any one of us can secure out tomorrows.
If you are hit with a serious money crisis and you find yourself scrambling around for emergency money, here’s how to assess your situation and get back on your feet.
All of a sudden and without warning, your roof begins to leak! Your hot water heater shuts down and your computer goes up in smoke, the clutch needs to be replaced in your car and your son decides to have his wedding on the Isle of Oahu – all of this within the same week!
As you sit, stunned and you ponder an exit strategy you receive a friendly letter from the IRS explaining that you miscalculated your taxes in 1996, and they now own your house.
What do do if your bank account runs out of money?
The above scenario looks like a money emergency of biblical proportions. You are afraid to open your front door for fear of finding a swarm of locusts!
Thank goodness, there are things you can still do to restore your financial life and equilibrium—and perhaps even fend off future misfortune—without having to sell your very soul.
Learning to Cope
You can be sure to find crippling emotional setback if you try to avoid it all you try. You will need to cope very well with both if you hope to make a solid financial comeback. Don’t worry about money woes, just start to prepare for the devastating fiscal and emotional fallout.
When a series of financial hits come your way that the stress will tend to accumulate and make your life much more difficult to cope. Don’t be afraid to ask for help if you are feeling stressed or in need of it. If you sit back wringing your hands with worry and allow all of your emergencies to pile into one; you will find yourself down for the count. You must NEVER allow yourself the luxury of panic. There is no one there for you to just take over.
The more you panic, the less effective you will be. Be aware of your own tendency to sabotage your plans further. It is only when you are at your most calm that you can get to where you need to be and then overcome. You need to keep a very clear head to be able to come up with an appropriate plan.
If you have a money emergency, it’s important not to act right away. You must first manage your emotions before you can make a plan.
If your money emergency demands that you act quickly, think first about seeking the advice of a debt counselor, money coach or financial planner. If possible, seek out the aid of a financially perceptive friend or family member who can help you to come to a clearer perspective.If you’re strapped for cash a financial planner can give you the advice you need to turn your situation around quickly if you’re in need of help.
Crunch some numbers
The first step toward establishing financial stability is to assess the damage. You need to know exactly how much you owe, how much money you have in hand and what it will take to cover the distance between the two.
If you are not properly prepared, you must become prepared on the spot. The idea is to not be overwhelmed and to have a good plan of action. You need to be entirely prepared to deal with any sized setback. Some people will be able to handle it OK; some will be sunk from the start.
You might have an emergency stash, but it’s most often depleted. Don’t turn to plastic for relief you will only be transferring your problems from one pocket to the other if you don’t have a good budget. The Irregular Expenses account should be set up in any good budgeting system.
If you’re running while on your last leg, consider taking out a home equity line of credit. The interest is tax deductible, but those aren’t fixed rates. Unless you plan to pay back the amount you borrowed promptly, it can end up costing you more than you thought.
Be Smart-Don’t be Rash
Think well before borrowing from loan sharks. There are loopholes that allow you to do so, but there are also hidden costs. If you lose your job, you’d have to repay the loan immediately, or be taxed as though it was a withdrawal.
When a person can have good financial control and a good plan of action. Should emergency funds be needed, a person can then sleep better at night.
There is no real magic formula for coming up with on-the-spot emergency cash. There is a good deal of thinking through and the putting of a good plan into action. If you can do that, you have it made. That is truly all that any one of us can do to secure out tomorrows.
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