Monday, October 8, 2018

How To Bounce Back From A Financial Setback

Sometimes life throws us curveballs and unfortunately, some are bigger than others. While we can't always plan for unexpected expenses, we can bounce back after shelling out more than we're comfortable with. There are a few steps we can take that will soften the blow. 

Build an Emergency Fund: I shared how to save up for your emergency fund a couple weeks ago. Obviously having an emergency fund is the easiest way to handle these unexpected situations. But what if you started saving and don't have enough in the account to cover the expense? Don't worry, I've got you.

Cut Any Unnecessary Expenses: While this isn't fun, this is a temporary solution that will help you cover the expense. I personally don't believe in credit card debt. I do put most of my purchases on my credit cards [for the points!] but I always pay it off in full every month. This also gives me time to cover the expense [between the statement closing and my payment becoming due]. In this time, I could avoid all unnecessary expenses [restaurants, subscription services, entertainment, etc.] so more of my paychecks and emergency fund can go towards the financial setback.

Earn Some Extra Cash: Whether you need more than cutting back or want an alternative, earning extra cash can really help. There are so many options these days - driving Uber, babysitting, pet sitting, food delivery, tutoring, etc. The options are limitless!

Once you've recovered from this financial setback, you can focus on building up your emergency fund. Life throws unexpected things our way all the time and it's helpful to be as prepared as we can!

Do you have any other tips for bouncing back from a financial setback?

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