Steps to Take When You’re Facing a Financial Crisis

The realisation that a financial crisis is looming in your future can be a frightening experience. Maybe you’ve just lost your job. Or perhaps you’ve just found out that you’re having a baby.

Whether the news is good or bad, you may still find yourself paralyzed as you try to face this financial crisis head-on. What should you do first?

Facing this new situation can be easier if you follow these simple guidelines:

 

 
Cut unnecessary expenses immediately.
Don’t wait until your bills are piling up and you’re in trouble to start looking for ways to cut your expenses. Avoid eating out in restaurants, cancel your cable service, and put a hold on unnecessary shopping trips. You can always restore your service and start treating yourself later when the crisis has passed.

Prioritise bills and pay them in order of importance.
Some bills are simply more important than others. The easiest way to deal with your finances when there isn’t enough money to go around is to make a list of your expenses from most important to least important. Remember basic expenses like housing, utilities, and transportation should outrank extras like entertainment or cell phone service. Now when you are paying your bills you won’t have to wrestle with deciding where your money should go. You’ll have a road map to guide you.

Apply for any governmental assistance you might be eligible for.
If your situation is especially dire, you may be able to get some help from Centrelink. Assistance programs include the Newstart Allowance for unemployed persons who are looking for work and the Baby Bonus for new parents. All of the programs have eligibility requirements so be sure to visit the Department of Human Service’s website for information about these programs and others.

Employ short-term methods of padding your income.
If you just need a little boost to your income, perhaps to cover an unexpected, one-time expense, you can find several options to get you past your financial obstacle. Selling a large item can quickly solve your dilemma. If you don’t have any large items to spare, consider having a garage sale and selling lots of small items. Alternatively, you can provide a service, such as babysitting or lawn mowing, to quickly gather some cash. These no-frills approaches to earning money may be enough to help you hold on until the crisis has passed.

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