We’ll just say it: money can be the best thing, and it can be the worst thing. When we’ve got a handle on our finances, we’re more confident, have a spring in our step, and can all-around sleep easier at night. When our finances are controlling us, and not the other way around, then the opposite is true. Sometimes, however, the bad financial times come out of nowhere. Everything’s going fine, and then suddenly we’re plunged into different circumstances. Below, we take a look at some of life’s biggest financial problems, and also offer advice on how to handle them.
Loss of Employment
There’s an inconvenient truth for many adults: they’re not financially independent at all. Indeed, they’re bona fide financially dependent on their employer. If more than eighty percent of your income comes from your salary, and it’s probably more than that, then you’re just one bad executive move from being out of a job. Even the world’s biggest companies close down for good, and plenty of small companies do as well, of course. If you find yourself without work, then get any job you can to tide you over until something better comes along. It’s also good practice to start putting aside the equivalent of six month’s earnings just in case if you haven’t got it already.
Not Your Fault
People have their lives turned upside down every day, and they had no idea that it was coming. If you’re in a car accident, then you may have expensive medical bills, you might have to give up your job, and so on. You could go from a fine financial situation to being in danger of financial collapse, and it all happened in a moment. If the incident wasn’t your fault, then check out https://www.dolmanlaw.com/fort-lauderdale-car-accident-lawyers/, and begin the process of getting the money that’s rightfully yours. It won’t undo the damage of the car accident, but it’ll help alleviate the financial burden while you’re on the road to recovery.
Mountains of Debt
People don’t go into significant debt overnight, but there usually is one moment when they realize “oh boy, I owe a lot of money.” While you can’t make the debt disappear overnight, you can begin tackling your debt straight away. This begins by reducing your expenses and working hard to pay down the debt. In some cases, you might want to look at getting a balance transfer for your credit card, one that offers 0% interest for a set period. In other cases, it might be worthwhile working with a debt consolidation company, so you can make your finances easier to manage.
Can’t Afford What’s Next
You might have an OK handle on your monthly expenses, but sometimes, you’ll be thrown a curveball that has the potential to mess up what you’ve got going, such as invitations to weddings, Christmas, and so on. If you can’t afford them, don’t do them! Instead, get to save so you can afford whatever comes up next time around.
What tips would you add to this list of advice?