4 strategies for getting through a financial emergency

Conventional wisdom tells us that it is necessary to set aside 12 months of money to cover for emergency situations. When you are living from paycheck to paycheck it is difficult if not impossible to save money and live a good life. You need to make a decent income, otherwise you will barely cover for the minimum expenses. If you’re having money trouble (medical bills, credit cards, or mortgage payments), take the necessary steps towards a debt-free life. The following strategies should make things easier for you. Please continue reading to find out how to raise cash right away to survive a financial emergency. 

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  • Understand that negative emotions are normal


So, you are experiencing a financial crisis. Things are beyond your control, which would not have happened if you were properly prepared. It is not just your bank balance that suffers. You must be feeling fear, anger, frustration, and many other negative feelings. It is normal given your current situation. The emotional turmoil is a normal part of the process, so do not try to ignore it. Avoiding dealing with your feelings is not a good idea because they can wreak havoc on your life. Everyone goes through tough times every now and then. For some, it is easy to get back on track. For others, things are not so simple. 

What you have to do is assign meaning to your emotions and decide what to do about them. Don’t change who you are or what you do. In other words, do not give in to your rational impulses. You cannot avoid experiencing negative emotions, just as you cannot avoid difficult financial times. With the coronavirus outbreak, it is difficult to contain financial fallout. The sooner you accept that negative emotions are normal, the better off you will be. Take examples from professionals such as currency traders. They do not try to separate emotion from the equation. Instead, they leverage them for a better decision-making process.  


  • Sell your old electronics


Coronavirus had led to delays in the electronics industry, so we could end up seeing shortages of gadgets. If you have electronic devices that you no longer have a use for, this would be the best time to sell them. You can sell them to companies that will reuse the materials for the industry. Alternatively, you can sell them to private buyers. An iPhone is worth a lot of money, but your old computer could bring in some cash as well. Never throw away old electronics. And do not let them collect dust in the garage. Leverage websites that offer cash in exchange for your possessions. Sure, the price is nothing compared to what you would get if you sold them on, say, eBay, but you do not have to go through the trouble of negotiating the price.  

With some cash in place, you will be able to handle the financial rainy day. Say goodbye to stress for a while and look towards your financial future with confidence. You will have money to pay for gas, electricity, and water. What is more, you do not have to worry about an eviction. Besides selling your old electronics, there are other things you can do to make money quickly. Examples include but aren’t limited to taking online surveys, becoming a secret customer, and renting out your car. They represent small bursts of capital that require little to no effort. 


  • Make decisions based on priorities, not fear


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A couple of months ago, you would not have hesitated to buy high-end headphones. It is just an example. Now, you would not splurge money on expensive things. You know that financial decisions need to be based on priorities. More precisely, you buy only the things you need, not the things you want. It is not recommended to make financial decisions based on impulse or fear, for that matter. Build financial security without acting on fear. Those who are not financially empowered have a tendency to make fear-based decisions. Do not put your weakness on display. Identify the situations where you let fear get the best of you. 

Establish your financial priorities. After all, you must be able to figure out what actions to take to get through the financial crisis. Your spending habits are a great place to start. Perhaps you are overspending on your restaurant budget. In case you are disappointed by what you see, make the necessary changes. It is time to break those bad spending habits and create new, healthy ones. Most importantly, do not neglect the future. Think about what you want to accomplish once you overcome these difficult times. Set measurable, achievable goals. Examples are saving more money for rainy days or saving enough money to live comfortably after retirement. 

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  • Get in touch with people who can help you 


Your friends and family might not be able to help you out because money is tight for everyone. Here is an idea: take out an installment loan. Installment loans require borrowers to make fixed payments over a certain period of time until the money is paid back. When a financial emergency pops up, it is the best option. Due to the extended repayment schedule, lenders are able to set a higher borrowing limit. In case you need a significant amount of money to pay an unexpected medical bill, this can come in handy. The interest rates are reliable, which translates into the fact that the monthly payments are predictable.

It does not take more than one or two weeks to get the money you need so much. The borrower can receive the money even two days after having filed the application. Installment loans are popular financial products, especially in Canada, being available across provinces and territories. Attention should be paid to the fact that the loans are regulated by individual provinces. This means that the costs can vary from one place to the other. Anyway, installment loans have flexible uses for emergency situations. Be careful when it comes down to the loan amount. Do not borrow more than you need and ensure the length of time matches your ability to repay the loan. 



Disclaimer: This content does not necessarily represent the views of IWB.


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