By: Kaneisha Mitchell
Major life changing events come with an expected emotional toll but when it hits you it does just that hit you. You may not even realize the affect it has on your personal finances. Many of our life changing events come with unexpected expenses that can you leave you floored.
Here are a few steps to consider if you’re dealing with a change:
1. Focus on Your Emergency Fund
If you are or have dealt with a life change that means your emergency fund has taken a hit. That is okay because remember it was created for emergencies. As you start getting back on track make sure to adjust your budget so you can start building your emergency fund back up. You want to ensure that you have financial support in place for the next transition that may come up.
· Determine your overall plan for your emergency fund. What are you saving for?
· Make it less accessible. The best way to build it up is to make sure you unable to easily reach it for non-emergencies.
· Automate!!!!! Automatically have funds to transfer monthly after determining how much you can afford to put away.
2. Make Sure to Have Some Assets Reachable
Even though it may be hard to control keeping your housing expenses to a manageable part of your income, it is imperative when trying to get back on your feet. Avoiding situations where your budget is being eaten up by your living expenses.
3. Live Within Your New Means (New Normal)
One of the hardest realizations of dealing with financial setbacks is how much they affect your day-to-day life experiences. Whether it is your grocery lists that know takes up too much of your new budget or keeping up with your social life that can sabotage your savings goals or maybe it is the perks you have been accustom too that are now no longer accessible.
When you deal with change you also need to change your mindset to accommodate your new normal. We get used to so used to our standard of living expenses that even when you know things have changed, you might still be leaning into habits you can no longer afford. Make sure you adjust your lifestyle, so it matches your current reality.
Adulting means discovering that much of life remains a matter of chance. Prevention is the best remedy and they key to that is SAVING money every chance you can. Life changes can cause strain but they also can create personal growth. These tips will help the growing process.
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