Life is full of unexpected moments. Sometimes gigantic and monumental, others small and subtle. Whether good or bad, we all find ourselves in surprising moments sometimes. However, whilst a nice little win in life might feel fab, the wrong type of surprises can be extremely nerve-wracking and lead to extreme stress, anxiety and difficulty sleeping at night. And of course, no-one needs that! One of the most difficult struggles to have thrust upon you are financial ones. There is nothing scarier than not being able to meet the bills one month because of sudden unexpected expenses.
In An Ideal World
Having emergency savings as a buffer is always good form when it comes to money, and ideally we should all have one; a few extra thousand to keep us going should our business not do well, we lose our job, or a significant financial commitment presents itself. The thing is though, life doesn’t always work out that way. Cash comes and goes, and there are moments when it isn’t where we need it to be, when we need it. Or something happens causing unexpected expenses, sometimes just at the worst time.
When Things Go Wrong
Luck just isn’t always on our side. Imagine having this one month; where your car needs servicing, the microwave stops working, one of your furry babies needs a trip to the vets, and your child has had a growth spurt. If you were fortunate enough to have a buffer, that’s gone.
Truthfully though, sometimes life doesn’t even give us the position to have a buffer in the first place. And often it isn’t about bad financial planning, it is about circumstance. We can find ourselves with the money available but not at the right time. Or worse still, we might not know how to get the money at all. Many events we experience are beyond our control. But even if you can’t control these things, it is completely natural to stress about them, we all do. When having a cash flow crisis, it helps to take a moment to consider options.
Solving Cash Flow Issues
You could reach out to family and friends, as long as it doesn’t put a strain on your relationships, some may be able to help. Having a clear out and selling old stuff can be helpful (but never sell things you use regularly or love, you may well end up regretting it and paying out more later). Ebay or facebook marketplace can be good for this. The problem with an emergency though is that it is time sensitive and doing this can take time, so it depends on the situation. Extra work and shifts might also be an option, but again this might still require an interim solution until payday.
Depending on the nature of the expense, a payment plan could be the way to go; many places offer them. Times like these are also when short-term borrowing works and you could consider a loan for a smaller amount. Just be sure you can pay it back in the expected timeframe and make sure you borrow responsibly.
Whatever the situation though, when unexpected expenses crop up; step back, breathe and consider your options. It might help to speak to a loved one, friend or financial advisor. One way or another, it is extremely rare that there aren’t options.
*This is a collaborative post.