How To Bounce Back After Money Troubles

Life isn’t fair. Even if you’ve done everything you can to save money and protect yourself from any financial nightmares, unforeseen circumstances can completely drain your savings and leave you in an unstable situation. You can’t protect yourself from something you never saw coming, but there are steps you can take to help you recover from a financial setback.

Medical bills

Unexpected illnesses and injuries aren’t ideal at the best of times, but the medical bills that come after your treatment aren’t something anyone wants to deal with. If you’re a self-employed freelancer, or you work in hospitality, taking a few days off sick can set you back in shifts and leave you short of your rent for a month.

Recovering from these bills will put a strain on your finances for a while, but if you tighten your belt and employ the same steps you use to recover from debt, there’s a good chance your finances, and your health, will recover.

Unexpected job situations

Even in a time when a lot of cutbacks are being made, no one ever expects they’ll be made redundant from their job. If you’re ever given notice that you won’t have a job soon, there are some things you need to do. Clarify with your soon-to-be-former employer, how much longer you will be staying on, and if you will be paid for the time you are still an employee. Once you know how much longer you will have money coming in, spend your free time sorting out your resume and securing references. You should also take care of your finances so you have enough to pay the bills in case your job hunt takes longer than you’d like. Read this post for some money saving advice. In this case, the best way to financially recover from losing your job is to make sure you get another one lined up as quickly as possible.

Expensive home repairs

There are a lot of DIY posts out there that can advise you on how to do your own home repairs so you can avoid expensive bills from a handyman. Unfortunately, there are some jobs that only the professionals can handle, and inevitably the cost of the repair will put a serious dent in your savings. If the damage was extensive, such as water damage or a backed up sewer, check your home insurance policy to see if you’re covered for this kind of damage.

Debt

If you were hit by any of the unforeseen circumstances above, you may have chosen to take out a loan to pay for everything. While you may have solved the issue of payments, now you have an increased debt on your plate. If debt is nothing new to you, then you know you have to sit down and make a realistic repayment plan. It may also be a good idea to include a savings plan so you can build a nest egg for the next unforeseen disaster.