While anyone can end up in a difficult financial situation, it’s also possible to get out of it and start to build a healthier foundation for yourself and your family. It has a lot to say for your ease of mind, after all, and if you’ve been struggling with this for a while, it will certainly take a load off your family’s concerns as well.
Getting back up on your feet, financially speaking, is not something that just happens overnight, though. You will need to be a bit patient, map out a doable plan, and stick to it like glue in order to be back on track – but it will all be worth it, of course, in the end.
Here are a couple of money-savvy tips to help you out of a financial pinch as well as what you can do to prevent this situation from happening again in the future. It just makes it a bit easier to sleep at night.
Work out a plan with the creditors
More than anything, those creditors just want you to come to an agreement that works for you. That’s why it’s so important that you’re not committing to a payment plan you’re not able to follow through with so take your time to take to the creditors and be honest about your situation.
You have nothing to lose by communicating and being open with them, after all, and will be able to get back up on your feet so much faster.
Another point to this is that they might be willing to write off a part of your debt if you’re able to pay them back some of it in a lump sum. That way, they’ll be guaranteed a part of the money back, which is really all they ever wanted, and you have something to negotiate with if they’re willing to write off the rest of the money you owe them.
One single phone call could, in other words, solve all of your problems so pick up the phone and start negotiating as soon as you’re able to.
If they are only willing to write off a part of it or if you’re unable to come up with a lump sum yourself, you may want to consider Utah Money Center utah title loans instead. While it may not sound ideal, to begin with, having something to negotiate with is really going to help you out tremendously.
Build up an emergency fund
Even though you’re able to get out of your money pinch and back up in your feet, for the time being, you still need to prevent a similar situation in the future. The truth is, however, that we can’t predict any unexpected financial setbacks later on – and the best thing to do is to face the future with a healthy emergency fund to back us up.
It is called the pinnacle of financial security for a good reason so try not to touch this emergency fund unless there is an, you know, actual emergency. Have a look at this article to read up on how much you need to save and be prepared to put aside a part of your paycheck each month.
(More…)
Why you need a Emergency Fund ?
We use this word all the time but do we know the real meaning of it (See below). There is so many situations that could occur in a blink of a eye, car repairs, house taxes, school tuition for the kids,unexpected bills and more.
It is not always a easy task or option to have a emergency fund but let see what are the differents reasons-benefits on how to make it happen for us. Having a budget is the right tool to have!
Source: Copyright Google.com [Definition]
“An emergency fund is a pool of liquid money set aside for unforeseen expenses like a medical expense or a car repair. Having an emergency fund can be the difference between a small bump in your financial life and complete disaster in your entire life. An emergency fund insures against life’s unexpected expenses.“
Discover the Five Reasons.
Reason #4: House and a Home
You do own a house or a car by the same fact and we do know there is a lot going on by owning a house and a car .It is part of life, we do need a roof and a car as a transport (of course we could use public transport,bicycle and more…).There is so many variables around a house and it should go accordingly with your capacity to pay for the house.
- We all know , we should not own a house that is costing more than 40% of our home pay. If it’s more than that, need to find a solution to drop the percentage really quick.
- This is one of the biggest emergency level you will need, because when there is a issue, it will require a lot of funds. Better be ready to face the music,if not we going to endup again in a bad situation.
- I do notice that when purchasing a house or are a first time home buyer ,the bank will offer a option to have a line of credit. To feel more secure in case of a emergency occuring at the last minute.
The reality is, 50% if it’s not more will spend a portion of this amount on things we don’t need or was not related to the house. When the urgency happen ,we have a bad surprise. Maybe to have a smaller house, drive a car that is paid in cash, lease instead of owning a house so you have more options.
Reason #5: Saving
It is difficult to save, there is so much happening at the same time, we don’t know where to look. Dealing with the bills, school,vacations, repairs and more. We should analyse our situation to know what we spend and what we have at the end of the month in our pocket.
Some will have a good surprise and some will go in a defensive mode, don’t understand how this situation got to this level and how to reverse it.
To know about Reasons #1 , #2 and #3, click here ===> Five Reasons for having a Emergency Fund.
There is a solution called the Envelope system that i use and is maybe the best option you may have to help you save first.For a emergency fund and second to help you save period for any other project you may have. Is it easy to implement? No it is not but it is so worthed to feel the security,the chance to be ahead on your bills and unexpected events.
See the solution here : The Envelope System
It’s for the sake of your financial health, after all, which will give you a much sounder sleep and a brighter outlook on the future.
Stanley
Popular posts on Bag of Cents:
- Having a Passive Income, is it possible?
- Frugal vs Money
- Simplify your Life Today = Minimalist
- The Envelop System to help you save
Leave a Reply