No matter how much we plan for the future, even the savviest of savers can face financial hardship, whether it’s down to mounting bills or unexpected medical costs.
So we’ve rounded up 5 handy tips on how to handle a personal financial crisis from creating an emergency fund to taking out a same-day loan.
Create a realistic budget
First things first: create a budget you’re likely to stick to.
Before making a budget, it’s helpful to track your expenses for a couple of weeks to identify exactly how much you’re spending and what you’re spending your money on.
This may include outgoings such as your monthly gym membership or the weekly grocery shop. The golden rule? Be honest with yourself. Soon, you’ll be able to allocate the money you save to go towards outstanding payments.
Although your morning coffee run may not sound like a lot of money, costs soon build-up, so make sure to identify your wants from your needs when creating a spending plan.
This may mean swapping your gym membership for running or cooking dinner instead of booking a table at your local date spot.
Determine your priorities
Prioritising your finances is one of the best ways to garner more control of your spending habits.
By having a list of priorities in place, you can pay off the credit card bill that’s hanging over you before even thinking about tackling any other upcoming payments.
If you’re creating a budget for the first time, we recommend downloading the free Sunshine Loans, spending planner.
Find a side hustle
If possible, getting a second job or picking up an extra couple of shifts is a great way to increase your earnings.
To make the most of the opportunity, but all of your newfound wages aside to go towards any outstanding payments.
This strategy can also be applied to generating extra income by capitalising on a hobby you enjoy whether that’s turning your love of words into freelance writing or putting your skills to good use on websites.
If you don’t have the opportunity of taking on another job, you could also look into renting a room in your home out on Airbnb or selling items you no longer need.
Take out a same-day loan
If you have urgent bills to pay, taking out a same-day loan maybe your best option.
The short repayment period means you can protect your credit rating and only need to meet basic requirements (such as having a steady income) to apply. Taking out a same-day loan also means you don’t have to touch your hard-earned savings.
At Sunshine Loans, they pay up to $2,000 directly into your bank account whether you have outstanding bills to foot or need short-term assistance before your next paycheck.
Create an emergency fund
Even if you’re receiving low income, creating an emergency fund will safeguard you from future debt in cases such as you lose your job or need to foot an urgent medical bill.
This financial safety net means you won’t need to borrow money, therefore, reduces the risk of loan or credit card repayments.
- Create separate high-interest savings account for your emergency fund so that you are less likely to dip into it for everyday expenses.
- Set up an automatic transfer to your emergency fund so that you can rest easy knowing that your account is growing.
- If you come into extra money throughout the year – for instance, from a tax refund – pay this into your savings account.