How To Jumpstart a Financial Recovery
Have you lost your job or fallen into debt because of the economy? Here is a quick guide to getting back on your feet and getting your finances back on track.
When the pandemic hit, most of us took a financial hit. And now with inflation and layoffs, the hits just keep on coming.
If the past few years have left you jobless, barely able to make ends meet or drowning in debt you need a fast start on the road to recovery. Here is a quick guide to getting back on your feet and getting your finances back on track.
Secure Your Income
If you’ve gotten behind on bills, contact credit card companies, utilities, internet providers and other companies whose bills you’ve been unable to pay.
If you’re in search of a new job and receive an offer, be sure to negotiate the best terms, such as better pay, benefits, vacation time or paid sick leave.
This could be the perfect time to venture into a new job or career path. Maybe it is something you have always wanted to do or it is an opportunity that you just can’t pass up. Utilize your degree, delve into a passion or expand a side gig into a fulltime job.
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Prioritize Your Finances
When you have secured your income, prioritize your finances. Make a spending plan or a budget that works for you. Start with the basics and begin repaying debt. Come up with a plan for repayment that is doable.
If you don’t have an emergency fund, or you’ve had to use it to get by these past few years, start adding to it again. Figure out exactly how much you can save each month, and put away that money first. If you wait until everything else is paid, there will likely be nothing left. If nothing else, being suddenly jobless has taught us the extreme importance of an emergency fund.
Add some entertainment or fun to the budget. Cutting everything extra out will only backfire.
Stick to Your Budget
Once you have your plan in place, stick to it. Your debt will go down and your emergency fund will grow, bringing back your peace of mind.
Unexpected things may come up and you will need to adjust your plan. Don’t give up! Remind yourself that you, like so many others, are recovering from a financial setback and that everything will get better.
Remember that a budget gives you the freedom to know what you can spend after all the bills and necessities are paid.
You Can Recover Financially
Get ready to tackle your finances and jumpstart your financial recovery.
Life will get back on track and your finances will too.
Reviewed March 2024
About the Author
Shaunna Privratsky became an expert in personal finance out of necessity. Between writing, reading and gardening, she is always on the lookout for bargains. Visit her at The Discount Diva.
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