6 tips for coping with temporary financial difficulties

1. Assess the situation

Panic won't help you find your way out - it will only increase stress. So sit down and think carefully about your position. Determine the cause of financial stress. Perhaps it is obvious: for example, you lost your job or went on maternity leave.

But it may be so: you notice that income is regularly not enough, you often have to borrow money. The prerequisites may be different: recently a lot of money has been spent on treatment, you have accumulated credit card and now payments are eating up all income, you spent a significant amount on a large purchase or entertainment. It is important to understand the reason and make plans based on the specific situation.

2. Identify priority spending

Usually these are expenses related to housing and food. You can live without home Internet and some kind of entertainment, but you definitely can't do without a roof over your head and food. You can save on some foods, but try not to skip meals, just to save a little more. On an empty stomach, you will not be able to work and make adequate decisions.

Priority costs may also include medicines, daycare fees, or something else, depending on your situation.

Now insure yourself against unnecessary expenses. If you have a credit card, take it out of your wallet and leave it at home. Remove payment card data from apps and online stores. Pay in cash, trying to meet the planned amount. This won't fix the problem, but it will stop the leak.

3. Make a realistic budget

Without it, you seem to be trying to navigate in a dark room by touch. By making a budget, you turn on the lights in the room. Now you won't trip over furniture and step on a cat, because the road is clearly visible. The budget will guide your financial decisions and help you resolve difficulties faster.

To keep it realistic, track your expenses 2-4 weeks in advance. Record every purchase in Appendix or notepad. If you already track spending, flip through the records for the last months. See how much is spent on different payments and purchases. Think about what you can save on now, what to refuse.

Calculate how much you can allocate to pay off debts, loans or create a reserve fund.

Set realistic goals. It is unlikely that you will be able to give up an entire category of expenses or save a lot of money on one thing. Instead, try trimming each category by at least 10%. You won't notice much of a difference, but you will save some money. Entertainment, shopping for pleasure, food outside the home can be reduced further - up to 90%. Try to leave a little for these expenses, so as not to feel completely devoid of joys.

4. Find out if there are benefits and benefits for you

In cases of difficult life situations, the state provides social support. Don't dismiss this option. Even if the amount is small, it still does not hurt.

• If you have lost your job and cannot find a new one, join the exchange. You will receive unemployment benefits, you will be able to take free training courses, and perhaps even find a new place.
• If you have a baby, you are entitled to benefitsChildbirth allowance in 2019 at birth, allowanceMaternity benefits for pregnancy and childbirth, as well as benefitsChildcare allowance for a child under 1.5 years old in 2019 for care. If this is the second child, you also haveWhat you need to know about maternity (family) capital maternal capital. There are additional benefits for families with many childrenBenefits, payments and benefits for families with children.
• If the reason for your financial difficulties is illness or injury, you can get benefitsFederal Law of December 29, 2006 N 255-FZ "On compulsory social insurance in case of temporary disability and in connection with motherhood" for temporary disability. It is also charged for caring for a sick child or family member. In addition, you can reimburse part of the cost of treatment by receiving a tax deductionSocial deduction for expenses for treatment and purchase of medicines.

5. Try to negotiate late payments

If you realize that in the near future you will not be able to pay utilities, medical bills or interest on credit, contact the organization to be paid as soon as possible. It is likely that they will agree to make concessions: it is more profitable for them to receive a smaller amount than nothing at all.

Banks can lower the interest rate or postpone the payment without charging a penalty (usually no more than 1-3 months). Management companies may agree to temporarily waive utility bills. The main thing is not to wait when you owe a lot, but to agree in advance, otherwise you are unlikely to be met halfway. And be prepared to collect the necessary documents to confirm that you are in a really difficult financial situation right now.

6. Take small steps

It is unlikely that it will be possible to return to financial stability in a few weeks or even months. Move gradually: lower expectations, save regularly, and look for ways to increase income.

If on a particular day or month you go over budget, don't immediately start berating yourself.

Analyze spending and find the reason for unplanned expenses. Perhaps you have a broken door lock or broken glasses and a replacement was urgently needed. Or maybe you succumbed to the temptation at your favorite store and bought something unnecessary. In the second case, try to change your behavior in order to protect yourself from similar expenses in the future.

And don't despair. Remember that such restrictions are temporary and you only need to be patient until your financial situation improves.