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5 Hacks for Overcoming a Financial Crisis

5 Hacks for Overcoming a Financial Crisis

No one wants to be in a situation where they owe more money to others than they actually have in their bank account. It can be one of the most stressful scenarios in life.

Unfortunately, such scenarios are very common these days. Most people turn to desperate measures to make ends meet.

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If at any point in life, you find yourself in such a financial crisis, here are five hacks that can rescue you without resorting to anything drastic.

Face the crisis

Oftentimes people get into a financial crisis because they procrastinate the inevitable. They know they are spending more than they are bringing in, but don’t know what they can do to stop it. So, they avoid it until it becomes too late.

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The first step for overcoming a personal financial crisis is that of acceptance. You will need to look at exactly what the problem is. Consider everything you bring in and make sure that you have a firm grip on exactly how deep you are in the crisis. Sometimes people get lucky in this situation and realize that their crisis is not as bad as they thought. Others are not so lucky and discover that their personal financial crisis is actually worse than they had originally anticipated.

Sell assets

Obviously nobody wants to sell their possessions. Unfortunately, that is often the easiest way to get money in a personal financial crisis. Make a list of all possessions that you could sell that could bring a decent amount of money. Order that list according to how much you use or really need that item. Start at the top and work your way down. This may be enough to keep you going for a few months while you find a permanent solution to your financial problems.

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Consolidate debt

If you have a lot of debt from various sources, it would probably be a good idea to start by consolidating your debt. There are many companies that will help you do this. The multiple monthly payments of different debts can be consolidated into one single payment that works for your current situation.

Consider a personal loan

A personal loan can be the best solution for certain situations, as a personal loan, they can get you quick funds in your bank account. They usually take less than 3 days to be approved. Personal loan can be very useful for quick cash depending on your situation. Do your research, and if a personal loan seems right for you, go for it.

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A good example of when taking a personal loan might be a good idea is if you want to sponsor your slow business. You evaluate that if your business is fixed, it could get you regular profits and you’ll be able to quickly pay off the personal loan, then you should go for it. You can use the personal loan as intermediary funds while you get back on your feet, and then pay it off once you are there.

Ask for help

Do not be ashamed of the fact that you are having financial troubles. Reach out to friends and family that you are close to, and see if they would be willing to help you out temporarily. You will often be surprised at how willing people are to help if asked in a humble manner.

In conclusion, there are options for those that are struggling financially. The most important thing is to take action immediately, or things will only get worse. There are people and organizations out there willing to help, it just requires the necessary work to find them and choose the best option.

Featured photo credit: Kyle Broad via unsplash.com

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Spencer Mecham

Personal Finance Coach, Digital Marketer

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Last Updated on January 21, 2020

How to Develop a Millionaire Mindset in 6 Simple Steps

How to Develop a Millionaire Mindset in 6 Simple Steps

We all like to dream about being financially wealthy. For most people though, it remains a dream and nothing more. Why is that?

It’s because most people don’t set their mind to achieving that goal. They might not be happy in their current situation but they’re comfortable – and comfort is one of the biggest enemies of growth.

How do you go about developing that millionaire mindset? By following these simple steps:

1. Focus On What You Want – And Take It!

So many people are too timid to admit they want something and go for it. When there is something that you want to accomplish don’t think “I could never actually do that”, think “I could do that and I WILL do that”.

Millionaires play to win, not to avoid defeat.

This doesn’t mean to have to become a selfish jerk. What it means is becoming more assertive and honest with yourself. You don’t have to grab off other people. There is a big pot of unclaimed gold in the middle of the table — why shouldn’t you be the one to claim it? You deserve it!

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2. Become Goal-Orientated

It’s almost impossible to achieve anything if you don’t set firm goals. Only lottery winners become millionaires overnight. By setting yourself attainable goals, you will get there eventually. Don’t try to get rich quickly — get rich slowly.

Let’s take the idea of making your first million dollars and expand on what kind of goals you might set to get there. Let’s also say you’re starting at a break-even position – you’re making enough to get by with a few luxuries, but nothing more.

Your goal for the first year can be having $10,000 in the bank within a year. It won’t be easy but it is doable. Next, you need to figure out the steps you need to take to achieve that goal.

Always look at ways to make growth before cutbacks. With that in mind, you might want to see if you can negotiate a pay rise with your boss, or if there’s another job out there that will pay better. You might be comfortable in your old job but remember, comfort stunts growth.

You may also have other skills outside of your workplace that you can monetize to boost your bank balance. Maybe you can design websites for people, at a fee of course, or make alterations to clothes.

If this is still not enough to make the money you need to save $10,000 in a year, then it’s time to look at cutbacks. Do you have a bunch of old junk that someone else might love? Sell it! Do you really need to spend $10 on your lunch everyday when you could make your own for a fraction of the cost?

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If you are to become a millionaire, you need to start accumulating money.

Here’re some tips to help you: How to Become Goal Oriented and Achieve More in Life

3. Don’t Spend Your Money – Invest It

The reason you need to accumulate money is for step three. Millionaires tend to be frugal people, and that’s because they know the true value of money is in investing. Being your own boss goes hand-in-hand with becoming a millionaire. You’ll want to quit your regular job at some point.

Stop working for your money and make your money work for you.

Rather than buying yourself a new iPad, that $500 could be used to invest in the stock market. Find the right shares (more on that later), and that money could easily double within a year.

There’s not just the stock market — there’s also property, and your own education.

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4. Never Stop Learning

The best thing you can invest in is yourself.

Once most people leave the education system, they think their learning days are over. Well theirs might be, but yours shouldn’t be. Successful people continually learn and adapt.

Billionaire Warren Buffet estimates that he read at least 100 books on investing before he turned twenty. Most people never read another book after they’ve left school. Who would you rather be?

Learn everything you can about how economics works, how the stocks markets work, how they trend.

Learn new skills. If you have an interest in it, learn everything you can about it. You’d be surprised at how often, seemingly useless skills, can become extremely useful in the right situation.

Start developing the habit of learning continuously: How to Create a Habit of Continuous Learning for a Better You

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5. Think Big

While I advise to start off with small goals, you absolutely should have a big goal in mind. If you have a business idea, then that is your ultimate goal – to start that business and make a success of it. If you want to invest your way to millions of dollars and do little work other than research, then that is your big goal.

There is no shame in not achieving a big goal. If you run a business and aim to make $1 million profit in a year and “only” make $200,000, then you’re still significantly ahead of most people.

Aim for the stars, if you fail you’ll still be over the moon.

6. Enjoy the Attention

To be successful, you have to be willing to promote yourself and enjoy the attention to a certain extent. Now the attention doesn’t need to be on yourself, it could be on your brand, but attention definitely attracts money.

Never be embarrassed to get your name out there. That means finding a spotlight and being brave enough to step right up underneath it.

If you run a business, try contacting the local papers. You’d be surprised at how amenable they often are to running a story about you and your business, and it’s all free publicity.

Above all, remember: You control your own destiny. Push hard enough for anything and you’ll get it.

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Featured photo credit: Austin Distel via unsplash.com

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