Unforeseen are real threats to your money. No one is exempt from facing any. No matter how prepared you think you are, one day you might find yourself questing Should I File for Bankruptcy
But it’s not all bad news. It’s not a permanent situation. These tips are the best way out:
1.- Don’t act on impulse
Beware of exits that promise to be easy. I know this is a difficult situation and you would like to find an immediate solution. It could be a sacrifice you don’t really want or a loan that will only add to your debts.
But before you make decisions, make sure they’re not inspired by a sense of despair. Evaluate the possible repercussions. They could lead to an even more critical condition.
2.- Reduce your expenses
First, work out your budget. Identify which expenses are basic. Leave for later all those expenses that you can now avoid.
Think about how many times you could walk instead of using your car or paying for transportation. Consider what tasks you used to hire someone to do now.
Establish a weekly budget for your food and entertainment, and stick to it. I’m not telling you to sacrifice them or give up your social life. Look for alternatives that aren’t so expensive when making plans with your friends.
3.- Do not spend ant
There are small daily expenses that are unnecessary. In the long run, the sum of them could mean an amount that your pocket will suffer. For example, in Mexico, a person spends an average of 1500 dollars a year on an ant.
4.- Prioritize your debts
Make a list of all your debts. Write them down in order of urgency. Don’t stop paying or you will accumulate, and it will be worse. Cover them according to your possibilities at that time.
Identify the ones you could stop paying while you come out of the crisis. Look at the commitment to cover them as a motivation to get ahead, not as a burden that takes your sleep away.
5.- Look for alternative sources of income
Economic crises can be a propeller towards creativity. Create ways to earn income beyond what you already know. The unforeseen event that bankrupted you could have been an accident or illness. Continue the work you have and create a second source of income.
6.- Interact with your contacts
Make the most of your network. Sometimes people you haven’t spoken to for years can be your solution.
If you lost your job or your business failed, maybe they could meet the ideal person to share your CV with. Or it could be someone who is interested in your project and can give you funding.
7.- Beware of Toxic Relationships
Avoid temptations. There are people who with their attitudes or behaviors keep you in bankruptcy. Identify them. You are in a process of recovery. You may need to stand back while you get up again. Deal with them intelligently.
8.- Feed your mind
Hard work doesn’t work as well as smart work. Keep updating. Learn strategies to optimize your resources and be more productive. Courage! Not everything is lost.