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Budgeting, Money

Handling Unexpected Financial Setbacks

Money is tough. Especially if you’ve moved away from the traditional 9-5 in search of a happier balance between a career, ambition, and an exciting home life. Going your own way is brave, and exciting. But, without the secure income that a boring 9-5 can bring, it can be hard to cope if something goes wrong.

We’d all like to believe that we are financially secure, and nothing will ever happen. But, it inevitably does. Things break, the car dies, the roof leaks, you get sick and can’t work, you go through a breakup and have to move to a new house, or you need to get home while traveling but don’t have the cash for a ticket.

So much can happen that either means you need to spend more than you’ve got, or you are unable to earn as much as you need. Then what do you do?

 

Disclosure: This post contains affiliate links. Which means at no extra cost to you, I will be compensated when you use my links. You can read more about our disclosure here.

Explore Your Options

Whatever has happened that’s got you in a sticky situation, you’ve almost certainly got options. Don’t assume this setback is earth-shattering. Sit down and take a serious look at your finances.

Do you have some clothes you’ve grown out of that are taking up space in your closet? Snap some pictures and sell them on Poshmark.

Are you a handyman? Sign-up for Task Rabbit and earn some cash helping people move furniture or doing some basic repairs.

Are you good at making graphics? Sell personalized logos on Fiverr.

The great thing about living in this day and age is that the ways to increase your income are endless! You can make money doing just about anything, it’s just a matter of finding out how.

Of course, the internet isn’t the only place to make money. If you work during the day, maybe you can find a bar job at night or wait tables on the weekends. Even if you’re only able to do these things a few times a week, they can add a significant amount of money to your monthly income.

Don’t Panic

You’re probably thinking, “Well that’s kind of hard to do when you’ve just been hit with the biggest bill of your life!”.

And that’s totally understandable because it can feel like your entire world is crashing down.

But the worst thing that you can do when faced with a financial setback is panic. Panicking, worrying, and getting stressed out can lead to making some pretty crappy financial decisions.

Don’t immediately rush into a drastic decision you’ll regret later because you’re panicking.

  1. Work out how much money you need to get by
  2. Make any possible cutbacks
  3. Earn where you can
  4. Sell what you can
  5. Ask family for help if possible 

Then, if things are still bad, apply for a low-interest loan or credit card to help in the short-term. But make sure you do PLENTY of research beforehand! 

Learn From Your Mistakes

Life is just a bunch or trial and error experiences so as long as you’re learning and improving your decisions along the way, you’re doing just fine.

Once you get through the bump in the road, sit down and take a look at your finances again.

  1. Reevaluate your monthly budget
  2. Find new ways to save money so that you’ve always got a rainy-day fund
  3. Create a side hustle that you can do on a regular basis
  4. Always keep a close eye on your finances
  5. Look for insurance to protect yourself and focus on paying off any debt (meetfabric.com has some insight into some specific insurance)

Everyone Has Setbacks

I don’t know about you but it makes me feel a little bit better knowing I’m not the only one riding the struggle bus every once in a while.

We all face unexpected issues sometimes. Life would be boring if we didn’t. It’s often how you handle it that makes all of the difference. Take a deep breath, don’t panic, and find the best solution to your problems.

Good Luck!

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