Imagine you just lost your job. To have a family to look after, or maybe sick parents to take care of. Or even that you are seriously ill and do not have health insurance. Few savings and many debts. To survive this crisis, the time has come to take specific measures that can help remedy the situation before it gets worse. And you can do it yourself, without resorting to state aid.
Steps
Step 1. Estimate your financial resources
Evaluate how much money you have in your checking and savings accounts, how much liquidation and any other form of income you receive.
Step 2. Estimate the value of your home, car, and any other valuable property
Step 3. Calculate how much your mortgage, credit card, and student loan debt is
Step 4. Contact all your creditors now
Let them know about your situation and agree on reduced monthly payments until the situation changes. Don't accept an initially negative response: ask to speak to a supervisor or manager. Regularly sending token payments as collateral can also help.
Step 5. Send token payments regularly
Even just 20 euros sent once a month can sometimes delay the suspension of utilities for weeks. Generally, creditors are more willing to forgive if you show them trying to pay them, even just a little bit. As mentioned, try to make arrangements with them for smaller monthly payments until the situation improves. Again, don't immediately take "no" for an answer: ask to speak to a superior or director and insist on reducing the figures.
Step 6. Change your shopping and shopping habits immediately
Cancel unnecessary gym memberships, DVD rental, and other monthly entertainment expenses. Make sure you don't incur any further charges for premature termination of any contract.
Step 7. Establish now that you will not eat at a restaurant until your financial situation improves (for example, until you find a new job)
This can save you 50 to 70% on food costs.
Step 8. Correct your food shopping habits
If you already shop in supermarkets, go to discount stores. Shopping in supermarkets or discounters can save you an additional 10% - 20%.
Step 9. Don't buy anything you don't need
You can probably put off buying clothes for several months. If you need to buy something, go to a second-hand clothing store or a clearance sale.
Step 10. Share the car or use public transport to reduce transport costs
Step 11. Consider sharing your room or renting it out
This can reduce housing costs by 20% to 50%.
Step 12. If you have a profession where you can also work as a consultant or free-lancer, start doing it
Use social networks to let others know about your current situation, your work skills and what you could do for them.
Step 13. While looking for a job that reflects your background, take on unusual jobs as well
For example, the garden designer, the babysitter, the waiter or the bartender. Don't believe the myth that employers judge you negatively for engaging in a job not strictly related to your education.
Step 14. Update your resume and portfolio
Publish it online, if you haven't already. Again, use social networks to let people know that you are ready to work for them, and provide a link to your resume.
Step 15. Register at various temporary employment centers
These may not have permanent jobs available or trades related to your education, but sometimes short-term contracts can help if you are in trouble.
Step 16. Sell items you don't need or put them up for auction
Step 17. Be honest with your family members
Some non-school activities (music lessons, summer camps) will have to be sacrificed for the good of the family. Encourage children to find part-time jobs and, if they are over 18, they should pay rent (if they work intermittently, ask them for 15-20% of each salary, rather than a monthly fee).
Step 18. If it makes sense (that is, if it results in saving at least 55% on expenses), sell the new machine and buy an older, but still reliable one
For example, you could sell your $ 22,000 car and buy a $ 5,000 one. Don't believe the rumors of those who say that old cars need constant and expensive maintenance.
Step 19. During tough times, when you find yourself competing with many other people for some job, you might try to offer lower rates to get rid of other candidates
For example, offer to accept 20% less than the regular salary for the first six months or the first year. This way, the company will save money and will not want to invest in a new employee.
Advice
- Spend 20% of your time taking steps that will save you money.
- Focus on increasing your monthly income first. Receiving an extra € 150 per month can make you feel a little more serene with your conscience.
- Collecting coupons for deals in stores may waste some time, but it will save you money.
- Finally, reduce your credit card debt. Your long-term goal should be to get rid of it altogether. The credit mechanism is useful but, if you are in financial difficulty, it is more important to have cash savings in the bank and higher monthly income.
- Cut your monthly costs as much as possible. Remember: the biggest savings you can get on the costs of housing and food.
- Spend 80% of your time focusing on how to increase your income and save it (even if it means doing unusual jobs, working overtime, or doing less than exciting jobs).
- Finally, focus on making your savings pay off (by keeping the money in the bank or through investments, not just cutting expenses). Some studies show that people feel safer by having greater savings than having a better-paid job. Open a separate savings account if you need to organize your money.
Warnings
- Do not ask for loans, even if they are interest-free or come from friends: further debts will only harm you.
- Don't waste time cutting down on minor and insignificant expenses. Aim for the biggest ones: the costs for housing and food, which make up the bulk of personal expenses.
