Emergencies can strike at any time, anywhere. Add to that the steadily increasing cost of living, you are likely to be under pressure on how to make it through with financial limitations.
The cost of everything is on the rise. Be it groceries, filling up your car, public transportation, or energy bills – everywhere you look, the monetary squeeze is on. Add to the mix an emergency, it’s easy to feel hopeless, overwhelmed and depressed, especially when your income is static.
In such situations, relying on friends and family is an option. At times, waiting for the situation to blow over is another solution. But, both of these options come at the cost of your peace and calm not to mention the time-sensitive nature of your circumstance.
The question then is – what do you do and what are your options?
In this guide, we explore steps on how to deal with emergencies when the weight of living costs is pressing down on you. As you dive into the complexities of making it through the difficult times, explore these options as you try to weather the storm.
Let’s take a look!
1. Financial Support From Lenders
In times of financial hardship, turning to lenders might be a feasible option. In the UK, plenty of financial institutions and lenders can help you get out of a financial fix and face economic challenges smoothly. All you have to do is ensure that you find the most reliable institution to deal with.
Engage in open communication with your respective lender – you might be surprised at the flexibility and options available to you. Some lenders may provide temporary relief by adjusting repayment plans, lowering interest rates or even granting short-term loans. In case your situation is too complicated to deal with and you’re in dire need of finances, considering options like bad credit loans is something worth looking into.
Pro tip: Just be mindful of the interest rates when seeking bad credit loans from a direct lender in the UK by being transparent about your situation. This is not something we’d ideally recommend but depending on the emergency, it is something you should consider.
2. Making Tough Choices
Emergencies demand making tough decisions. Evaluate your needs versus wants, and figure out ways to cut back on costs and make informed choices that align with your immediate financial goals.
Avoid indulging in activities that may require you to spend a few extra bucks. Temporarily cut back on non-essential purchases and go for products/services that take little out of your pocket. This might involve reevaluating your subscription services, dining out less frequently than usual, or postponing non-urgent purchases.
However, while spending money, be mindful of identifying areas where you can cut back without compromising your essential needs.
3. Budgeting and Saving on Future Expenses
Jot down all your expenses from time to time and get a granular understanding of your financial inflows and outflows. Make sure you craft a budget that not only refrains you from making unnecessary purchases but also helps save enough to navigate future expenses.
Some simple ways to save money for future expenses could be:
- Auctioning valuable items/possessions
- Selling old/vintage books, items of clothing and homeware (or whatever you don’t need) online
- Spending only thrice each week (subjective)
- Using store credits or loyalty points to pay for essentials
- Paying bills on time to avoid fees/interest/penalties
- Try negotiating bills with service providers and consider cost-effective alternatives.
Doing so will shield you from emergencies, paving the way to have room for a contingency fund. This will allow you to deal with unforeseen expenses and will offer a sense of security and preparedness.
If need be, seek advice from financial advisors to get insights on what can be done better to improve your financial situation in the long term.
4. Help From Community/Support Groups
If things get exceptionally difficult, soaring prices are likely to affect you in more ways than one. Struggling to meet everyday expenses, including feeding your family, keeping your home warm and commuting to work? In such cases, relying on community groups can come to your rescue.
Local communities can invariably be the best source to seek help during difficult times. Look out for community groups, charities, or non-profit organisations that extend help beyond monetary aid. Fortunately, the UK has many purpose-driven communities operating food banks and clothing institutions that provide necessities to those facing financial setbacks.
Moreover, you can participate or even initiate community-driven initiatives to foster a sense of solidarity, reminding people that they’re not alone in times of crisis. Know that there’s no shame in asking for help when you need it.
To Sum It Up
And there we have it – a range of tips to help get you through the current economic and financial difficulties. Though the situation is hard for many, some things will surely be in your capacity to navigate the crisis smoothly.
Follow these 3 simple yet practical steps to navigate the hardships. Also, know that you’re not alone and there are resources out there to help you!
Note: We’ve tried to have an open mind while giving these tips to suit the budgets and standard of living of a range of audiences. Depending on personal circumstances, we encourage readers to take the steps that are more relevant and necessary to their unique situations.