There will always be a money emergency in every person’s life. It’s when the need is great and the resources are few. It can be hard enough to make ends meet even on a decent wage already, so when times get tough and money is not there when it’s needed, a person can easily go into despair.
For example, all of a sudden, your roof begins to leak, your hot water heater shuts down, your computer goes up in smoke, the clutch needs to be replaced in your car, and your son decides to have his wedding on the Isle of Oahu? Imagine what you’ll do when all of these happened within the same week or maybe at the same time! How will you cope?
That couldn’t be the worst news, though. While stunned, you could be sitting there and pondering for an exit strategy when you receive a friendly letter from the IRS explaining that you miscalculated your taxes in 1996, and they now own your house. In the next hours, how will you survive not having shelter, food, and everything else?
With these scenarios, you can be sure to find crippling emotional setbacks. If you are imagining that you can’t avoid being in this situation, you might just as well begin to prepare for the devastating financial and emotional fallout that is sure to come. You have to cope very well with both if you hope to make a solid financial comeback. However, you have to know first how to do it right.
Manage Your Emotions
On the first hint of a money emergency, it’s important not to act right away. If you do, you will inevitably make a mistake! Before you can manage your finances again, you have to first manage your emotions. You absolutely must regain your balance before you can even begin to make a plan.
If your money emergency demands that you act quickly, think first about seeking the advice of a debt counsellor, money coach or financial planner. Whenever possible think about seeking out the aid of a financially perceptive friend or family member who can help you to come to a clearer perspective.
Remember the old adage that two heads are always better than just one! You won’t need to make a major cash investment if you’re strapped. Look for a complete money guide from A to Z that will teach you everything about money, including how to budget, save, dump debt, and invest. Often times this will be all you will need to securely turn the corner.
In these kinds of situations, it may or may not be your fault, but that doesn’t mean that you shouldn’t — or can’t — do anything about it. Always take into mind that the more you panic, the less effective you will be.
A scenario like this will not be resolved in just one click. Having a clear mind and being calm are the master solutions because this is the only time you can think of an appropriate plan for dealing with this kind of problem. Keep calm. Do not panic. Then eventually — you will find yourself — financially free at long last!