Image Different Money from Different CountriesIf you are hit with a serious money crisis in consequence of lost a job, pandemic or any other circumstances such as your roof begins to leak or your only car engine is crashed and you find yourself scrambling around for emergency money, here’s how to assess your situation and get back on your feet.

The above scenario looks like a money emergency and you are afraid to open your front door for fear of finding a swarm of locusts! Thank goodness, there are things you can still do to restore your financial life and equilibrium – and perhaps even fend off future misfortune, without having to sell your very soul.

Wherever there are money woes, you can be sure to find crippling emotional setback. Avoid it all you try, you might just as well begin to prepare for the devastating fiscal and the emotional fallout that is sure to come. You will need to cope very well with both if you hope to make a solid financial comeback.

Whenever a money emergency hits, it will be your ability to deal with the individual pitfalls that will hold you in good stead. It is when a series of financial hits come your way that the stress will tend to
accumulate and make your life much more difficult to cope.

You will not be so overwhelmed when you can calmly and rationally look at each individual problem as it arises. If you sit back wringing your hands with worry and allow all of your emergencies to pile into one; you will find yourself down for the count. Calm must take center stage. You must never allow yourself the luxury of panic. There is no one there for you to just take over. You are all you have.Image No Money and Crisis

The more you panic, the less effective you will be. You need to keep a very clear head to be able to sit down and come up with an appropriate plan. Be aware of your own tendency to sabotage your plans further. It is only when you are at your most calm that you will be prepared to get to where you need to be and then overcome.

Being calm is the first key to managing a money emergency. At even the first hint of a money emergency, it’s important not to act right away. If you do you will inevitably make a mistake! First, before you can manage your finances again, you have to first manage your emotions. You absolutely must regain your balance before you can even begin to make a plan.

If your money emergency demands that you act quickly, think first about seeking the advice of a debt counselor, money coach or financial planner. Whenever possible think about seeking out the aid of a
financially perceptive friend or family member who can help you to come to a clearer perspective.

Remember the old adage that “two heads are always better than just one!” You won’t need to make a major cash investment if you’re strapped. Look for a planner who will give you $100 or even $200 as a part-time job like driver or delivery for Apps like Doordash or Uber that pay you daily as example. Sometimes this few hundreds bucks will be all you will need to securely turn the corner.

  • Remember: the first step toward establishing financial stability is to step back, take a deep breath and assess the damage.

Image Money Rescue and EmergencyPossibly one of the bigger mistakes people make when they’re in a financial crisis is not being prepared to make a clear assessment of where they’re at. You can easily become overwhelmed. However, totaling up the damage serves two important purposes. First, you need to know exactly how much you owe, how much money you have in hand and what it will take to cover the distance between the two. Second, you will want to avoid any other mishaps, such as penalties, further repairs, missed deadlines, etc.

If you are not properly prepared, you must become prepared on the spot. Any type of money crisis will catch you unaware and you will feel cornered. Wouldn’t it be ideal to be ready and waiting for the crisis? How likely is this to happen to you, though?

Most people will be at least somewhat prepared. If the crisis is not too dire, they will be able to handle it ok. Some will be sunk from the get go. The idea is to not be overwhelmed and to have a good plan of
action, no matter how little or how a lot. You need to be entirely prepared to deal with any sized
setback.

Ideally, those unexpected expenses could be covered by the funds in the Irregular Expenses account in any good budget. Unfortunately, though, there is always a common problem. You might well have an emergency stash – but it’s most often depleted. This same problem affects the majority of us so take heart.

At about this time many people make the mistake of turning to plastic for relief. Resist this one. You will only be transferring your problems from one pocket to the other. On the other hand, if you are sure you can handle using credit cards to deal with a cash emergency, you had better be sure you could pay them off when the time comes. Otherwise, why add yet another debt and another problem. Eventually, it will all catch up with you.

Good luck!

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