My last career choice was unfortunately a very toxic working environment.  My relationship, mental health and physical health really started to suffer.  I decided to leave my job, without having another full time job lined up.  It was the first time in my life I left a job without a job starting soon after.  It was terrifying.  It was also very difficult to find a new job that fit the criteria I was looking for in a full time job.  I eventually decided to started my own coaching business and became my own boss.  I’m thrilled with my decision and I have no regrets.  I no longer had to deal with micro-managers or difficult people and I healed my mind, body and soul.  I couldn’t be happier.  But, before my business gave me a livable wage, I depended on my financial know-how, ‘gig’ work, and my passion to succeed.  I taught English in the mornings, delivered food throughout the day and worked on my new business in my free time.  I cut back on my expenses and re-worked my budget.  Not only did I survive during a difficult financial time, but my ‘gig’ work gave the opportunity to pay all of my bills, save money and build a new business.  I achieved this all while not working a full time job.

In my past, I wasted thousands of dollars because I didn’t fully understand my spending habits or good financial practices.  By planning ahead and working hard, I’ve been able to travel, build a business and live a life that I love.  It hasn’t always been easy though.  I had to learn the hard way how to control my spending habits, save money and survive through difficult financial situations.  Through the hard times, I learned how to plan my time, make the most of my day, negotiate for better wages and invest my money properly.  These experiences have given me the expertise that I can now pass along to my clients, so they’re able to learn from my financial mistakes.

Reaching Out for Help

We all get into bad situations from time to time, either it’s from leaving a bad relationship or situation, losing a job, or being bombarded from a large, unexpected expense.  During difficult times, it’s beneficial for you to reach out to someone that can lend an ear, help with advice or be a shoulder to cry on.  The older we get, we tend to stay more to ourselves, which makes it difficult to ask for help from others when we’re struggling.  Let’s discuss emergency financial situations we could get into and exactly when we should reach out for additional help from others.

Financial hardships affect all of us from time to time.  Maybe a large expense came up seamlessly out of no where, or you’ve recently lost your only source of income.  During hard times, it can be difficult to reach out and ask for help from others.  It’s a hard shot to your ego to admit that you need help from another person.  You may not even want to admit it to yourself that you need help from other people.  When you are aware of your financial situation, don’t ignore the problem.  Don’t ignore the phone calls from debt collectors or the letters from your landlord, no matter how annoying they can get.  Inform them of your financial situation.  Admitting to your situation will help you in the long run, either by getting extensions or learning about organizations that can help you with your payment.

9 times out of 10, it’s better to ask for help before your situation gets worse, rather than ignoring the situation all together.  Your top choice for financial assistance may be your immediate family.  If you do not have family or friends that are able to help you financially, reach out to a professional or community organizations that can help you.  Knowledge is power.  Make sure to check your bank account often.  I often check my bank balance before every purchase I make.  This helps me keep track of all the purchases I make.  When you check your funds in your bank account; You may realize that you do not have enough money for your rent, mortgage or other bills.  Reach out to services or help from others before you get a notice of eviction or shut down of services.  The sooner, the better.  Don’t wait for something to save your financial situation for you.    

If you’re in danger of losing your home or utilities, it’s best for you to reach out to others for help immediately.  I cannot say that enough.  I’ve worked with so many individuals that let their ego or fear get in the way of reaching out, and they’ve lost out on services or their home.  Starting over is far harder then solving a much smaller problem.  When reaching out for help, there are plenty of ways that someone can help you.  Family and friends are a great resource for everyone, even if you just need to bounce ideas off of them or learn about other organizations that may be able to help.  If you don’t have a great support system, there are always community resources that can help.  It will take time to reach out to the majority of these resources.  You may have to have meetings with them and prove hardships, but there are always ways that you can get help.  Be prepared to advocate for yourself.  Reach out by phone, leave messages and call back often.  Another great way of receiving help is to reach out to professionals near you.  Every aliment or problem will have a solution, you just need to find the right solution for you and your particular situation.  If you are struggling emotionally, reach out to a local or online therapist.  If you’re struggling with physical ailments, reach out to your doctors and make appointments often.  If you’re struggling financially each month, reach out to financial experts to help you understand your budget and make necessary adjustments so you don’t struggle every month to pay your bills.

Looking Beyond Your Budget

Losing your main source of income can devastate anyone, especially when you live “paycheck to paycheck”.  To avoid getting into a bad situation, it’s important to always keep at least two months of bills in a savings account for an ‘emergency fund’.  This savings account shouldn’t be touched unless you have no other choice.  This fund is only to be used when you lose your income so you’re able to pay your bills.  I recommend an ‘emergency fund’ to be a separate savings account.  Build it slowly over time.  Rather than going through your savings during every month, there are other ways to help you get out of debt.  Let’s talk about some of your other choices.

A lot of financial situations can be solved with a little bit of foresight.  Keep track of your finances each and every month.  Make sure you’re going through your budget regularly so you can pin point when you are struggling more than usual to pay bills.  When you’re going through hardships, reel in your spending habits until you’re in a better position.  Try to cancel all subscriptions or non-essential services.  Make a grocery list every time you go to the store so you don’t over spend.  Try new recipes that use less expensive ingredients.  Look for less expensive car insurance, rental insurance and home insurance.  Call your utility bills to see if they have any savings plans that could help you save money each month.  Next, look for county assistant programs that can help you with your bills.  LIHEAP helps people with low income to pay their energy bills.  Other county programs help with home repairs, mortgage and rental assistance for a short period of time.  Contact your local government to learn about the programs and if you’re eligible for them.  Also, see if you’re eligible for any government benefits, such as food stamps, WIC or temporary cash assistance.  Lots of local charities and churches are also very helpful to members of their community.  Visiting local pantries once or twice a month can really help a family save on food costs and toiletries, especially if they’re struggling financially.  Using these resources and cutting back on spending, even for a short period, could really make a difference for you in the long run.

Now that you’ve re-budgeted your money and cut back, let’s look for other means of earning extra income.  There are many different avenues to earn extra income, at home and out of the home.  Here are some great ways to earn extra income; teaching English online, delivering food, bartending or working at a restaurant part-time, customer service at home, becoming a virtual assistant and editing and writing online articles.  I always advise my clients to have a “back-up income” even if they’re not struggling financially.  Whether it’s a passive income or a part time job, having an extra income is important for everyone.  It’s best to start out with a part time “gig” work then transition to having a passive income source.  Always be over prepared, rather than being under prepared.  Many of these side jobs could really make a difference with your income throughout a year.  You would be able to save (or invest) thousands more each year by only working a few extra hours a week.  If disaster strikes, such as losing your main source of income, your ‘side-gig’ can really help you sustain yourself or your family until a more permanent solution arises.  Don’t underestimate the overall benefits of having a back-up financial plan or several financial back-up plans.  Make sure to research all of your side ‘gigs’ to make sure they’re not scams.  My advice, stay away from jobs that require any sort of buy in of products, taking surveys or offers that sound too good to be true.   

Planning Ahead

So when are you supposed to have time for two jobs?  Planning can really help you have a fulfilling family, home and work life.  It’s all about balance.  It can be hard to work more often a week, more hours a day or a second job while taking care of yourself and your family.  Try planning ahead and organizing days to spend together as a family or with friends.  If you do not have children, then you can definitely work more often and not interrupt your social calendar too much.  Start by planning days together with friends and family.  Remember to plan events with others that do not cost you anything extra.  Go to a park, go on walks, go to farmers markets, window shop, have a picnic, play board games, watch movies, read books, or eat meals together at home.  Practice having fun without spending any extra money.  You don’t need to spend money on food, goods or services to have a great time.  Talk together, laugh together and spend time creating great memories.  Spending money doesn’t always make for a great memory.  Try bringing your own snack, drinks and food from home wherever you go, so you’re not spending additional money while you’re out of the home.  Focus on spending time together.  Remember, working more is a temporary solution.  If you’re struggling at the moment, that doesn’t mean that you’ll be struggling for the rest of your life.  Making small changes now will help you succeed in the future.  Make a financial goal then adjust your life, budget and work load so you’re able to achieve your goal more quickly.   

How to Learn More

There are lots of ways for you to survive difficult financial times.  I always encourage my clients to work on several different avenues to help them get out of a financial crisis.  The best thing you could do is to plan ahead.  Especially with the new recession being on the horizon, we all need to think more about our own budgets.  It’s important to learn the basics of budgeting to achieve financial independence and freedom.  I often give 1:1 sessions or group courses about achieving personal financial freedom.  The greatest lesson you can learn from me is that you’re in charge of your finances.  You are the one that makes your money and spends your money.  Either that statement is enlightening or terrifying, is up to you.  So if you’re going through a financial crisis it’s your responsibility to get out of that crisis.  I offer individual and group courses to help teach my clients how to handle and grow their financial portfolio.  Upcoming course dates are announced on my website and my instagram.  Stay tuned to find out when to sign up for my “Surviving and Thriving through the new Recession Masterclass”, to get your finances in order and learn how to thrive through the hard times.