Weathering the Storm: How to Manage Your Finances During Hard Times

Hard times, suck. There really isn’t a better way to put it. Experiencing a job loss is an extremely stressful experience, especially on finances. Aside from increased stress, you may also feel anxiety, but having a handle on your finances can alleviate some of that pressure. During hard times, the last thing you want to do is worry, but at the same time it's all that you can do. Let’s talk about ways to manage your finances during these difficult times.

Reduce Expenses

When unemployed as a result of the lack of a steady income, you want to spend as LEAST as possible. You want to reserve your savings and whatever cash you may have as much as you can. To effectively reduce your expenses, create a budget aligned with your current situation. If you have Netflix, Hulu or other subscription services, consider pausing them to save more. Avoid eating out as often or ordering take out, opt for public transportation instead of Ubers and any other discretionary spending that you can lower, be sure to do so! Obviously, now wouldn't be the time to make really big purchases, so if you’ve been eyeing a new computer and it’s Black Friday and 30% off, don’t do it. If you have saved up an emergency fund, that means you should have anywhere from about three-six months’ worth of expenses saved up. Whether you have savings to last three months or six, you want to aim to use as little as possible. This is essentially the time to be particularly frugal, if you weren’t already.

Financial Assistance Programs

If you are eligible, you can seek support from government programs such as unemployment insurance, food assistance programs, home energy assistance programs, and etc. These programs can assist you and help you keep expenses low, as you get back on your feet. The amount you’re eligible for and duration of the benefits will vary by state, so look into your state’s regulations and contact the Department of Labor to find out more information about other resources you may be eligible for.

Stay Organized

Your normal has been disrupted, so it is very easy to fall off the bandwagon. However, it’s crucial to stay organized during this difficult period, stay on track of all bills and payments due to avoid late payment fees or overdraft fees. You can use Google Sheets or Excel to create a spreadsheet or you can simply use a notebook, the choice is yours, but just ensure that you are keeping track of your finances.

Give Yourself Grace

Losing a job is never easy, especially when you have a lot of financial responsibilities. Yes, you should reduce your expenses, explore government programs and stay organized, but it is much more important to give yourself grace. Finding a new job and getting back that steady income may take time, so it is important not to beat yourself up and prioritize your mental health, in addition to your finances. It’s pretty easy to become stressed out and anxious while unemployed, especially because who knows how long you’ll be without work, but you are not alone, this is actually a common experience among many. Take care of your mental health and engage in activities that bring you joy and make you forget all about time, connect with friends and loved ones, and prioritize self care. The one thing that all hard times have in common, is that we all eventually get through it, even if it might feel like it’ll never end.

With the right mindset and strategies in place, you’ll certainly get through this challenging time. It may feel like forever, but you will learn a lot and you will later thank yourself for it. Sometimes it rains, so flowers can bloom and that’s all this is, take care of yourself!