Throughout the recent months of 2020, we have been through a lot! Not only mentally and physically but also financially. Overcoming financial hardship is something that isn't easy to do! I’d just like to take the time out to recognize these issues and how to attack these problems.
There are multiple reasons why the majority of us face financial hardship. No.1 Debt! Over 80% of Americans face overwhelming debt ranging from old student loans, to credit cards, to old medical bills that were never fully paid. Being in debt can be a very stressful thing to deal with especially if there are multiple hardships within your lifestyle. One powerful way you could reduce debt is to be determined to attack it in small steps. As one of my professors told me a while ago, “The best way to eat an elephant is by one small bite at a time.” Putting small amounts of money aside can easily add up to pay off debt! You must prioritize yourself and be determined to reach your goal before you are able to be debt free..
2. Another financial hardship could be unemployment. Losing your job is the last thing that you could envision for yourself but the sad fact is, it happens. Most of the time, you never can prepare or know when you are losing your job. It's highly unpredictable and what most people would commonly ask themselves is “How was I supposed to prepare?” Although there's little to no answer, there are multiple ways to rebound yourself from a draining situation. Here are a few tips...
a. When losing your job, always make sure that you file for unemployment ASAP.
b. Recognizing your monthly budget to compensate.
c. Prioritize bills that need to be paid.
d. Practice good saving habits for the future and emergency situations.
e. Keep looking for employment!!!
f. DON'T GIVE UP
3. We all fall short of the lack of saving!!! Yes, this is something we all know we should be doing. This is one key factor leading to why we suffer from a lack of financial stability. Once we get that paycheck and we see how much we made after all the long hours we put in, the first question that comes to mind is “How am I going to spend it”. We may put it towards bills and necessities but whatever we have left over, we choose to spend it on items that we don’t need! Its human nature. In order to be financially free and not feel like we are drowning in finances, we should always pay ourselves first. Put money aside for the future expenses or for emergencies. Do not spend more than you make! It takes an inner sacrifice to tell yourself that you don't need certain things and that not everything is a necessity. Wants vs Needs! Invest in yourself such as bonds, long or short term investments, stocks,mutual funds, real estate etc.
Tips and Advice
Dealing with debt and financial trouble is not an easy thing to do. Knowing that these times shall pass is something that you must keep in your head when going through these struggles. Ways to prevent it from happening again or from future financial troubles is to stay educated on how to deal with and prevent financial hardship. “If you fail to plan, then you will fail.” If you ever fall into the category of financial trouble, don't be ashamed or upset. It happens to all of us and this is just one small minor setback to a greater outcome! You can do this, one step at a time!
I am Aliese. Social media intern, new blogger, and straight in high school. Thanks for reading!