Emergencies and unexpected expenses can strike when you least expect, and it’s for this reason creating an emergency fund or saving money in an emergency fund is vital to the pursuit of financial freedom.
An unexpected change in financial situation can be incredibly stressful because no matter what the situation may be, the bills still need to be paid. It can be utilities to stay on, and you need to put food on your table, your vehicle might break down and need expensive repairs. So how do you deal with financial crises when you aren’t prepared for it?
Here are some tips to help you get through a financial emergency;
Accept the situation.
The first step to take is to acknowledge the fact that unexpected situations are part of life and no matter how much you plan, you can always face an unexpected emergency situation sometimes. It is important to accept that change is part of life and it is not possible to control each and every aspect of life so always prepare your mind for events that were not in your plan.
Revisit the situation.
Take some moments to sit down and critically look at the situation. Always have it at the back of your mind that running around in panic won’t solve anything and would only add to the stress. But the ability to evaluate and revisit the situation will ensure you make the right choices.
Determine what cause the financial emergency.
Before you can look at ways to resolve the situation, you need to understand the cause. Is it a sudden loss of income or a natural disaster? While each situation can lead to similar burdens, your plan to attack it will likely need to address the root of the problem to be effective in the long run.
During an emergency situation, it is important that you remain calm and cool so that you have the right mind frame to assess the situation and come up with the best solution to rectifying them.
Ask for help.
Another option could be to check with friends and family. Although not everybody likes to ask for money, a little help from a loved one might be all that you need to get through the rough path. If it a job loss, you can check in your local community for resources to help you get back to work.
Cut your spending.
In order to get through a financial emergency and back to a place of financial wholeness, you may need to temporarily cut down your spending and this will allow you recover from this emergency and give you the necessary funds needed to either build or replenish your emergency fund.