Wednesday, 21 February 2018

4 Ways To Handle A Financial Emergency

Panic stations, everyone! The refrigerator that has been on its last legs for about five years has finally busted a gut and died. The food is spoiled, you forgot to get contents insurance and you’ve also forgot to top up the emergency savings account. Despite the fact the fridge has been dying a death for a while, you never thought it would actually die. Now here you are, fridge-less and without a clue what to do next. This, my friends, is an emergency situation – man those panic stations and plan a weekly menu full of tinned food and UHT milk. It’s come down to this.

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Okay, end scene. That’s enough drama and tension; your issue with a broken fridge can be fixed simply with a little thought and attention. It’s not all that dramatic to go without a fridge for a while, but what if this really was an emergency? How would you handle yourself if you found yourself up a creek without a financial paddle to keep you afloat? Today the fridge is broken, tomorrow it’s your leg and you need time off work. When the unexpected happens, you need to keep the bills paid and the world spinning, and you really need to keep the milk fresh. So, we’ve got four ways to help you handle it when you find yourself in a financial pinch at the same time as an unexpected emergency:

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Don’t panic. I told you earlier to man the panic stations, but you don’t have to, really. It’s not going to solve anything and it’s only going to make you stress out even more! The thing you need right now is logic. What caused the financial mess in the first place? Look to the root of the issue first, because until you determine why this has happened, you cannot hope to fix it. Get your reasoning first.

Prioritise your expenses. Not every expense in the house is made equal: your Sky TV is not going to be as essential as, say, your food shopping. Figure out what comes first in the line of fire for your necessities and go from there. When you find yourself off work or needing to replace an appliance, you could read many credit card reviews and this iLoan review online for the best place to borrow, but first you need to figure out how much you can afford to pay back. This is the best reason to prioritise expenses.

Ever heard of a side hustle? Figure out your biggest talent and then exploit it. Can you write fluently and with quick wit? Learn to blog and earn cash from it. Can you sew with a deft hand? Learn to make purses. Getting extra cash is a necessity if you hope to replace the appliance or support yourself during a hard time.

Plan ahead. Next time there’s a financial emergency, you’re going to be ready. You’re going to use the experience of the UHT milk to be savvy with your savings!

An emergency doesn’t have to cripple you, so you need to be smart about how you handle it!

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