We live in tough times today and we cannot deny the fact that we face financial crisis every now and then. It’s inevitable no matter how we try to avoid it because one way or the other it is bound to come our way. If you wanna be equipped with the most effective way of dealing with monetary issues, then stick around co’z we are going to discuss the most efficient solutions on how to deal with the 4 most common money problems we usually face today.
Some of us might be doing well with our finances. We have a stable job, we are always updated with our monthly payments, and some of us might even have money to spare for savings. But even if how are we are financially well-ff for the time being, we still can’t help but to think about the financial woes that we might face in the future.
According to a research conducted by the American Psychological Association, most of us cannot stop worrying about our work, the present economic situation, and not having enough savings in the bank. In fact, these are the top 3 things most of us worry about in terms of finances for the last years. We fear of the possibility of experiencing something that will threaten the balance of our financial stability and we think about this most of the time. What if something is going to happen with my work? What if the car has to be fixed immediately? Or what if my son is already finished with his college studies and he has to move back to the house soon? – When we encounter situations like these, we usually find ourselves at the table calculating our debit and practically staying all night just to make amends with it.
Thinking about these possible problems can be really stressful to the mind and body. But there are actually positive ways in dealing with this kind of stress. If you know how to manage these things properly, you will be able to think of clever ways of dealing with any financial crisis that you might encounter in the future. Dealing with money problems can be done in a practical and a productive way. You don’t have to worry too much about getting into a tough situation. You just have to stay positive in everything that you do and know the type of problem that you are going to face firsthand so that you can effectively find a solution to deal with this kind of issue. Here are the 4 most common financial woes we often face and the solutions on how to deal with each one of them:
1. Problem: No raise being given to you since God knows when… – You have been working at the same job for many years now and you have been loyal to your company. You get a paycheck which is practically the same amount since the first time you entered into this company. And considering the economic situation we are having today, you need a raise to cover up your expenses but it hasn’t been given to you just yet.
Your short term solution – Try to find out the exact ‘shortfall’ amount that you think you have. Try to see the problem at a different perspective. Instead of thinking that you are overspending, try to know the exact amount that you fell short with. Once you have determined the exact amount, you can easily make a solution on how to deal with it such as cutting down your expenses or taking extra hours of work. In this way, you have created a specific goal to achieve and you have managed your stress at the same time.
Your long term solution – Try to know the particular reason why you still haven’t receive your raise after all this years. Are your co-workers getting their raises in the company? If you have found that they were already able to get their raise and you haven’t, then you might have to raise this point to your boss. Not being able to get a raise can be an indication that you’re not really appreciated and you might have to switch to a better-paying job. Try to talk to your boss about this matter and let him know how you feel. If you think that you are not well appreciated in your current job, then you might have to start looking for another one. It’s hard working on an environment that you feel like you’re being “singled out”.
2. Problem: Your son/daughter has moved back home from college – You are happy that after all these years your kid is able to finish his/her schooling. Now it’s time for him/her to look for a job. But for the meantime, you are going to take care of his/her expenses for the time being.
Your short term solution – It’s all about setting up expectations. Set up a family meeting and have an open forum about your current financial situation as well as the other things you need to discuss. Make them understand that the usual ‘parent-child routine’ does not work anymore. They are young adults now and they need to know about their present responsibilities. Try to set up the mood of the meeting in a business-like manner to avoid family drama. Make your child understand about the financial adjustments you have to do if they are going to stay with you. In this way, you can make certain arrangements with them so that they can also do their share of ‘pitching-in’ to the solution.
Your long term solution – This might be a harsh thing to say but it would be best to set a deadline as to when you are going to allow your kid to stay in the house. Talk to your child in a way like adults do so that you can avoid feeling bad. Help your kid to become a self-supporting and independent individual and this will guarantee to benefit everyone.
3. Problem: You have an outstanding payment on your car bill – Your car unexpectedly broke down and you took it to a repair shop to have it checked. The moment you came back to the shop, you felt mixed emotions as you saw you car was back in shape but you have a $3,000 bill staring at your face!
Your short term solution – Learn to compartmentalize. Give some time to think about the problem and when the time is up think of the practical ways of bolstering your flow of cash. Try to keep in track with all your expenses and find some areas where you can save a hundred dollars. You can either postpone a planned family vacation or cut cost on your ‘wants’.
Your long term solution – Be sure to be prepared with future ‘financial surprises’. Actually, these expenses are not ‘surprised’. You know that somewhere along the line the car needs to be fixed; you know that you need to buy gifts if you are invited at a wedding; or you know that there might be some areas in your medical bill that are not covered by the insurance. A study conducted by the Journal of Consumer Research indicated that most of us don’t prepare for the ‘irregular’ expenses when they are the ones that happen on a regular basis. So make a habit to set aside a portion of your paycheck to the ‘surprise’ fund to prepare yourself for the unexpected.
4. Problem: Your husband received a pink slip – This is truly a very sad situation that you are going to face. While your man is physically and emotionally down at the moment, you have to remain strong even if you cannot help being panicked too.
Your short term solution – Now is the right time to reach out to your friends and support network. Try to seek an objective advice and express your feelings to be effective in coping up with the situation.
Your long term solution – Look at your budget in a practical way. Try to determine your priorities and list out the things you need to deal in terms of your expenses. Track your expenses for a couple of weeks or months so that you will know where to make cuts. Save as much as you can. Aside from that, try to determine your ‘wants’ from your ‘needs’. It is recommended to create a ‘wants and needs chart’ as early as possible. Gather all the expenses that you need to cover up for the next couple of months and list them all on a piece of paper. At the front side of this paper, list out your true needs like the food, rent, healthcare, etc. and write down all your wants at the back like having a vacation, buying a designer bag, and the likes at the back. Pick out the important expenses that you need to deal with and try to postpone the other expenses if you can until you’re back on track again.