Step by step plan for different occasions.
- Assess the situation
Panic will not help you find a way out – it will only increase stress. So sit down and think carefully about your position. Determine the cause of financial stress. Perhaps it is obvious: for example, you lost your job or went on maternity leave.
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But it may be so: you notice that income is not enough regularly, you often have to borrow money. The prerequisites may be different: you have recently spent a lot of money on medical treatment, you have accumulated credit card debt and now payments eat up all your income, you have spent a significant amount on a large purchase or entertainment. It is important to understand the reason and make plans based on the specific situation.
- Identify priority spending
Usually these are expenses associated with housing and food . You can live without home Internet and some kind of entertainment, but you definitely cannot do without a roof over your head and food. You can save on some foods, but try not to skip meals just to save a little more. On an empty stomach, you will not be able to work and make adequate decisions.
Depending on your situation, priority expenses may also include medicines, kindergarten fees, or something else.
Now insure yourself against unnecessary expenses. If you have a credit card, take it out of your wallet and leave it at home. Delete payment card data from apps and online stores. Pay in cash, trying to meet the planned amount. This will not solve the problem, but will stop the leakage of funds.
- Make a realistic budget
Without it, you seem to be trying to navigate in a dark room by touch. Once you’ve budgeted, you’ll turn on the lights in the room. Now you will no longer stumble on furniture and step on a cat, because the road is clearly visible. A budget will guide your financial decisions and help you resolve problems faster.
To make it realistic, track your expenses for 2-4 weeks. Record every purchase in an app or notepad. If you’re already tracking spending, scroll through the entries for recent months. See how much is spent on various payments and purchases. Think about what you can save on now, what to refuse.
Calculate how much you can allocate to pay off debts, a loan, or create a reserve fund.
Set realistic goals. It is unlikely that you will be able to abandon an entire category of expenses or save a large amount on one thing. Instead, try trimming each category by at least 10%. You won’t notice much of a difference, but you’ll save some money. Entertainment, shopping for pleasure, eating out can be reduced more – up to 90%. Try to leave a little for these expenses, so as not to feel completely devoid of joys.
Take note
- How to budget for a month and a year: a guide with examples
- Find out if there are benefits for you
In cases of difficult life situations, the state provides social support. Don’t dismiss this option. Even if the amount is small, it still does not hurt.
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- If you’ve lost your job and can’t find a new one, go public. You’ll get unemployment benefits, get free training courses, and maybe even find a new job.
- If you have a child, you are entitled to receivebirth allowance, maternity allowance, and care allowance. You also owe maternity capital . For large families, there are additionalprivilegesAllowances, payments and benefits for families with children / State Services.
- If the cause of financial hardship is illness or injury, you mayallowanceFederal Law of December 29, 2006 No. 255-FZ “On Compulsory Social Insurance in Case of Temporary Disability and in Connection with Motherhood”for temporary disability. It is also credited for caring for a sick child or family member. In addition, you can recover part of the cost of treatment by receiving a tax deduction.
- Try to Negotiate Delayed Payments
If you realize that you won’t be able to pay your utility bills, medical bills, or interest on a loan any time soon, contact the organization that needs to be paid as soon as possible. It is likely that they will agree to make concessions: it is more profitable for them to receive a smaller amount than nothing at all.
Banks can reduce the interest rate or defer payment without charging interest (usually no more than 1-3 months). Management companies may agree to temporarily not charge utility fees. The main thing is not to wait when you owe a lot, but to agree in advance, otherwise you are unlikely to be met halfway. And be prepared to collect the necessary documents to confirm that you are really in a difficult financial situation right now.
- Move in small steps
It is unlikely that you will be able to return to financial stability in a few weeks or even months. Move slowly: Lower your expectations, save regularly, and look for ways to increase your income.
If you go over budget on a given day or month, don’t start beating yourself up right away.
Analyze spending and find the reason for unplanned expenses. Perhaps your door lock broke or your glasses broke and a replacement was badly needed. Or maybe you succumbed to the temptation in your favorite store and bought something you didn’t need. In the second case, try to change your behavior in order to protect yourself from such expenses in the future.
And don’t despair. Remember that such restrictions are temporary and you only need to be patient until your financial situation improves.
