It is not news that we live in financially stressed times. Everything from the foreclosure crisis to unresolved banking rules and regulations to the disappearance of entire sectors of jobs are in the news everyday. Witnessing others falter because of job loss, perhaps to where they cannot buy or even lose their homes creates the impression that the individual is powerless in the face of this storm of economic hardship.
Sometimes, perhaps not always, there are unheralded means to encounter and overcome financial difficulties. Certainly, cutting back on expenses is among them. Finding part-time work might be another answer, even when it doesn’t entirely replace a full time job that was lost.
Reaching out to find financing – even just a small loan to get through a time of emergency expenses – sometimes is and sometimes is not the solution. To find out when and how to get through any time when there is a crimp on your cash flow, follow these four steps:
Assess the timing of the situation. Everything has a due date, both from the outflow and inflow sides of the equation. What large expenses loom in a month or two? What income flow can you expect over those four to eight weeks? Look at the net-numbers but also when everything hits. This provides perspective.
Examine and re-rationalize expenditures. What is essential and what is not? If a child must change from private to public schools, is there an upside to it? Do you need a second vehicle? Do you need cable TV? Some are sacred expenses, some are not.
Fix short-term problems in the short term. If it’s a matter of covering a surprise bill of, say, $800 this month, you can get money from payday loans , an advance on your next paycheck to cover timing issues. Faxless payday loans have made this a reasonable, respectable means of changing the timing of inflow-outflow to your advantage.
Establish longer-term solutions over time. If there are one or two insurmountable expenses you do not want to face one or three or five years down the road, plan now to be rid of that expense. The same can be said on the income side of the equation.