Even those that are really good with money can face sudden financial changes. Whether a relationship has broken down and you need to find a new place to live or you’ve had an injury that prevents you from working, there’s a good chance that the sudden change to your life will have serious implications on your finances. And while this step might be hard to overcome, it’s certainly not impossible. Let’s take a look at how you can take care of your money when sudden financial changes happen.
Revisit your budget
The first thing you need to do when you know that less money is coming in is revisit your budget. With a change to your finances, you’ll need to learn how to live on less money that you do now. This might mean changing some subscriptions to cheaper options or cancelling them altogether – or at least until you get back on your feet.
It’s important to try not to dip into any savings you have if you can. Savings are there for those moments where you have no other options and shouldn’t be used to pay for luxury items like a Netflix subscription. Going through your finances may also make you realise that you’re still paying for things you don’t need or use anymore!
Know where and when to claim
There’s lots of help you can get when your finances are low. Here in the UK, if your income is lower than £1,229.42 per month as a single person without any dependants, you could be entitled to claim universal credit or another benefit that will help you pay for everything you need to survive.
If the reason you’re low on money is because of an injury that’s preventing you from working, it’s also worth looking into whether you can claim anything. For example, if you were in a road traffic accident and weren’t at fault, speaking to solicitors at Councilclaims.co.uk will soon tell you whether you have the grounds to claim compensation. They work on a no win no fee basis, so you’ll soon know if you have a chance if they’re willing to take your case.
Put together an emergency fund
It might seem a little backhanded trying to put together an emergency fund when you’re already worried about your finances, but it’s never too late. Anything you can get together to help bolster your bank account will help.
This might be selling some items you no longer want, or you could pick up a freelance gig to help keep your bank account afloat. You could also try some money saving challenges! Before you know it, the odd bit of change in a jar will be a nice sum to keep your head above water.
Keep track of EVERYTHING
Finally, it’s understandable that when you’re in financial distress that you don’t want to look at your bank balance. However, making the effort to keep track of everything will prevent you from going into overdraft or spending money on something that you can’t afford right now. Remember to speak to any providers you have if you’re having financial troubles as they are usually more than willing to help until you get back on your feet!