Any number of factors can disrupt your ability to earn income. There may be changes within your company or job market or a slowdown in the economy as a whole, such as that seen during a recession.
If you are unsure where your next paycheck is coming from, take a few deep breaths. Uncertainty and change can be very stressful, but you thankfully have several options when it comes to keeping your lights on and food on the table.
While it may take a few steps to find a plan of action that works for you, have faith that you can adapt and get yourself back on your feet. The following tips can help you stay safe and healthy during tough times:
Focus Your Spending: Your budget is your best friend during a slowdown. Retooling it will enable you to identify exactly how much you need to spend on necessities such as food and bills. While the common recommendation is to spend 50% of your budget on necessities, 30% on personal spending, and 20% on savings, you may need to reassess how much you can afford for the latter two categories if your income flow slows or stops altogether.
Cut Back on Dining Out: Cook at home to save yourself valuable funds. For example, ordering out for lunch can easily cost $10 and often more, while most home-cooked lunches come out to less than $5 per serving! While food delivery is convenient, delivery fees can add up quickly as well.
Adjust Your Self-Care Routine: No matter what is going on in our lives, it is very important to take care of your physical and mental health. Thankfully, you don’t need to spend a lot to take care of yourself! If money is tight, instead of purchasing experiences or treatments, give yourself a space at home or in the park where you can relax and do things you enjoy.
Research Your Options: If your income flow has been interrupted, research what federal advisories and support are available to you. You may qualify for government aid, grants, or even other work opportunities.
Try to Not Collect Debt: If you do not have a paycheck, you may be tempted to put all your purchases on your credit card or to take out a loan. Be hesitant about doing so, however, because a high debt balance and recurring interest are notoriously difficult to pay down. Seek support and retool your spending habits before turning to this option.
Tap into Savings: If you have been contributing to a rainy day fund, that day may have come. If you have an emergency fund, consider using it to help you cover expenses until you can find support or resume working.
Overall, the plan that will be right for you will depend on your financial situation. Learn more about how to survive during recession and slowdown at the Syncis Money Blog today.