The idea that your earnings can take a sudden tumble can be a stressful one, but it’s something that can happen to almost anybody. It can be especially alarming if you don’t already have a firm hold over your finances and have been living paycheck to paycheck. Maybe you’re actually on maternity leave and your drop in income has come from that, or maybe you’re ill, or maybe you’ve simply had to take a pay cut. Whatever the reason, knowing how to cope when this happens to you is crucial.
Here’s how you can cope when your earnings take a sudden tumble:
Start Budgeting ASAP
The first thing you need to do is start budgeting if this isn’t something you do already. Many people simply make sure they have enough for their bills and then spend the rest on whatever they like. However, there’s a flaw to this. If you’re not dividing the money you have left into separate pots, then you might realize you can’t afford something when it’s too late. For example, you should allocate a bit to eating out, a little to toiletries, and so on. If you spend everything you have leftover in your favorite clothes shop, you’re going to be upset when you realize you can’t afford the family meal that has been planned for months the week after. Budgeting is smart and doesn’t mean you have to scrimp and save every single thing you earn.
Find Ways To Destress
Losing earnings can be stressful, so find ways you can destress. Spend more time doing the things you enjoy, take part in some yoga, maybe even meditate. Don’t let this stress get the better of you. Use this time as a learning curve to change your mindset, start talking positively, and your situation might just improve. Even if it doesn’t, you’ll feel happier. Here are a few ways you can feel less stressed:
Baths with salts.
Figure Out Where You Can Start Reducing Your Expenses
There are many ways you can begin reducing your expenses if you look closely enough. How much you reduce can depend on the amount you’re losing out on. For example, when was the last time you looked at new utility bill suppliers? You could be losing money if you haven’t checked for a while. You can work on saving energy in the home and even downsize your car. The average person tends to spend $2000 on average on eating out per year too, so see if there’s a way you can cut back on this.
See If You’re Entitled To Compensation
If you’re losing income due to an accident that wasn’t your fault, you may be able to claim compensation. However, you’ll need to discuss your circumstances with a professional company first. Compensation may not be available for everybody, but it may be available for those who are injured, or those who have unfairly lost their jobs.
Get All The Help You Can
Help is out there, so don’t suffer from this change in lifestyle alone. Get the help that you can. See if you can speak to a financial advisor for free and use the advice that they give you. See if you’re entitled to any government benefits – this can vary depending on where you are in the world. Food banks can be found in a multitude of places, so if you need them, don’t be too proud to go along. They will be able to help you, especially if it’s an emergency.
Let Your Loved Ones Know What’s Going On
You might be too proud to tell your loved ones what’s going on, but you should find a way to tell them. Most of the time, they will want to help. At the very least, they’ll want to be sure you’re ok. Sometimes, having somebody to talk things through with can make all the difference.
See If There’s A Way You Can Earn Extra Income At Home
The more sources of income you have, the less you have to worry if one of them is struggling or you even lose one. This can take time, but you’ll be glad you did it in the future. Start by selling things you don’t need or use. Walk around your home and imagine that everything has a price tag attached to it. If you haven’t used something in a few months, chances are, you’re safe to sell it!
How about starting something on the side? People can usually do this with nothing but a laptop and the internet these days. Of course, you may need to teach yourself a few new skills using YouTube and other resources, but it isn’t impossible to replace the income you’re losing if you’re determined. All you need is a can-do attitude and a willingness to learn.
Avoid Get Rich Schemes At All Costs
When you’re losing income and you’re feeling desperate, it can be tempting to look at get-rich-quick schemes to make money. However, you should avoid these at all costs. Anything that seems too good to be true probably is. Avoid pyramid schemes. If you’re not sure what they are, research them. Ever noticed how people will brag about how much money they’re earning on social media and then try to recruit people as part of their team, claiming they can earn an uncapped amount of money? Those are the things you need to be wary of. It’s not impossible to make money doing it, but it isn’t as easy as they make out – they’re probably not making as much as they make out either.
Coping when your earnings take a sudden tumble can be tough, but don’t fret. You can get back on your feet when you start using the tips outlined here. Stressing out about your situation will only make things worse. Find somebody to confide in and look after yourself. Thanks for reading!