Whether it’s a global pandemic, job loss, illness, or any other reason, financial tough times will occur at some point in our lives. When money is tight, it puts your financial situation to the test, as well as your physical and mental well-being.
According to a Bankrate 2023 survey, 52% of adults believe that the cost of money negatively influences their psychological health. Women feel the adverse effects of financial stress on their mental well-being more than men (56% as opposed to 47%).
Some people are in denial during financial crises and keep spending, thinking things will be sorted out somehow. Some opt to use their credit cards for purchases; meanwhile, some decide not to spend any money. You can plan your finances to survive in a tight time.
Actions to Take When Money is Tight
Distinguish Between Needs and Wants
It’s incredible how often we pay for things we don’t need. Cutting costs when finances aren’t doing well is common. However, few people are aware of the value of even small changes.
You can’t be brutal about all the necessary expenses. Concentrate on the things you can control to ensure you can change your circumstances. For instance, consider your food budget. Not only will you save money, but also feel a sense of satisfaction, and feeling in control can help ease stress.
Look for Extra Earnings
There is a limit to cutting a budget up to a certain point, so you’ll need to look for an extra source of income. The best ways to improve your income include:
- Work Extra Hours: Consider talking with your employer about working more weekly hours if it increases your pay.
- Ask for a Raise: Given the high rate of inflation and an extremely tight labor market, employers could be more inclined to offer a raise.
- Selling Things You Don’t Need: Items like old furniture or clothing, toys, pet accessories, and even tools.
- Look for a Side Gig: It could be providing food delivery, tutoring, freelancing jobs, or managing blogs. The amount of money you earn can increase generously.
Pay Essential Bills
If you’re concerned about your bills, clear the essential ones first. Sorting through your bills and separating them into categories serves many objectives. For instance, it can help you analyze your expenses and see if you can reduce any.
Remember, It’s Not Just You
Although social media makes it look like everyone lives in financial prosperity and takes a trip every month, it’s not always true! Facing money issues is common, but sharing them with others is not. Unforeseen events happen to everyone: losing a job, health issues, and seasons that are more expensive than other times of the year.
Make a Fun Spending Plan, also Learn to Say ‘No’
Although money is tight, we still need some entertainment to enjoy life, or we’ll soon start struggling with mental issues. It’s not easy to plan activities, but the little you spend with your loved ones can go a long way!
At the same time, don’t overdo the fun part. Draw a line and learn to say no to some temptations and some of your kid’s cries.
Save Money & Track Your Progress
Saving a budget and putting together an emergency fund will allow you to feel more secure and help relieve anxiety. You will not know whether you’re moving forward if you don’t keep track of it. Keep track and be aware of where you are financially.
Talk to Your Lenders
The burden of debt can be mentally daunting as well. Discuss the issue with your creditors before letting it and all the anxiety it creates take over your life.
Lenders are often open to discussing your issues and finding at least a short-term solution. They might modify the loan, like prolonging its duration or lowering the interest rate, to decrease the monthly payment.
Talk to a Close Friend
Talk to a friend you trust to let go of any negative thoughts and frustration that can build up over your day. Pick someone inclined to have a positive outlook on the world and can provide helpful suggestions or listen to your concerns without passing judgment.
Ask for help
Discussion about your financial situation with your loved ones can be a challenge. However, you’ll be amazed by how gladly they’ll provide help. Your friends and family will be there whenever you’re in a bind. You can repay their kindness once your finances are back on track.
Know that everything will be alright. The outcome may not be in the same way or with the same difficulty as you had hoped, but keeping a positive mindset will help you manage whatever scenario you face.
Recall the problematic situations you overcame as a reminder that you can handle every necessity, even if the money is tight.
Your financial goals may have to be put off temporarily at this period, but that’s okay. Make sure you take good care of your health, well-being, and family members first.