4 Vital Steps to Take in Handling Financial Stress – Our GuideApr 09, 2020
The beginning of 2020 has been stressful for many people, even financially speaking. Think about how the COVID-19 outbreak has become a major threat to the global economy and the financial markets. On a personal level, many individuals are confronted with financial hardships that are making them stressed in thinking about how they will carry on their daily living. While some are fortunate enough to have a remote job and can still save up amid the lockdown, many others are laid off, meaning that they may not even have much money to put food on the table.
Because of this, you must take vital steps to handle your financial stresses. If you don’t know how to proceed, here are four steps to help you address your financial hardships this 2020:
1. Evaluate your current financial situation
Begin by assessing your financial situation, and think about your source of income and would-be expenses this year. Chances are that you still get to work remotely, or your business has been compromised. This means that your finances this year may have been crippled. Sit down and jot down your regular income and what your expenses will be for the next few months. Delve deeper into details, such as your monthly rent, bills, and groceries, among others.
2. Set a plan to address your financial standing
You can start by creating a budget for the whole year-round by jotting down your monthly income minus your expenses. Second, make sure to track your expenses constantly and stick to your budget. The truth is, there are many ways and means to cope with financial hardships, but you have to be deliberate with your decision-making and critical of your spending habits.
3. Pay off some debts or start saving up
Depending on your situation, there may be two routes that you can take. If you manage to keep your job and regularly earn despite the lockdown, you may either start paying off some of your debts or start saving up. Now that you’re confined at the comforts of your home spending less than usual, you can slowly start paying off some debts. If you don’t have any debts, then it is the best time to start saving up.
4. Find a way to generate more income
If you are locked up a home due to the COVID-19 outbreak, now is the best time to think about generating an income or improve your hidden crafts. First, there are online freelancing jobs that you may want to venture into. For instance, you can get some writing or video editing gigs to earn some side income. Second, you can start improving your crafts and get into business soon after the lockdown. You just have to find ways and means to generate more income this year.
Yes, the current financial situation can cause many people to live with stress, anxiety, and fear. However, there will always be ways and means to rise above the situation. As discussed above, you can assess your current situation, plan on how to cope, pay off your debts or save up, and find ways to generate income. Ultimately, it all boils down to your behaviour and mindset to overcome any situation you may face!
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