• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Recent
  • Food
    • Weight Watchers
    • Keto
    • cost per recipe
  • Fun & Travel
  • DIY & Crafts
  • Family Life
  • Holidays
  • Gift Guide
  • Shop

Our WabiSabi Life

Living a Perfectly Imperfect Life

menu icon
go to homepage
search icon
Homepage link
  • Recent
  • Food
  • Fun & Travel
  • DIY & Crafts
  • Family Life
  • Holidays
  • Shop
×

Home » Family Life » Money Matters

Financial Stability: Getting Back on Your Feet One Step at a Time

By Debi Leave a Comment

This post may contain affiliate links. I receive a small commission at no cost to you when you make a purchase using my link. As an Amazon Associate, I earn from qualifying purchases. This site also accepts sponsored content

Financial Stability:  Getting Back on Your Feet One Step at a Time

Financial Stability: Getting Back on Your Feet One Step at a Time. 2/3 of families have less than $1,000 in savings, and 1/3 of families have no savings.

Most people are not equipped to deal with severe financial setbacks, whether they are due to bad choices or just bad luck. Two-thirds of Americans have less than $1,000 in a savings account, and over a third of families have no savings at all. So, many people must start over at least once in their lives. To get back on the path to financial stability, read on to find out the best pathway to follow.

In-Depth Assessment

Emotionally, this step may be the most difficult one, because in many cases, people must wade through mountains of bills that they would much rather forget about. However, this step is also a necessary one, because it is impossible to make a plan to leave a place if you are not sure where you are.

It’s natural to feel depressed. When this feeling gets overwhelming, take a break. A walk around the block is often a good idea. If the feeling lingers or the breaks aren’t enough to get it under control, consider seeing a professional. Many churches and civic groups offer low or no-cost counseling.

Set Priorities

A savings account is one way to avoid future financial disasters, or at least minimize them. Reduce nonessential, like cable TV and dining out, as much as possible, and put that money in a savings account. If your employer allows direct deposit to multiple accounts, that’s even better. A large emergency fund will not appear overnight, but it will appear.

In most cases, rebuilding credit should be your other priority. Stay current on bills that are reported to the credit bureau, such as home mortgage and auto loan payments, come hell or high water. Also, talk to a credit counselor about which old bills you should pay off first, because different payments have a different effect on your credit score.

Stop Digging Your Hole

While it’s important to get the emotional and financial help you need, it’s also important not to give what little you have to companies that offer quick fixes. Many credit repair companies are quite reputable, but many others make big promises, take your money, and do little to raise your credit score. In most cases, the financial disaster did not occur in one fell swoop, so it will also take some time to correct the situation.

Use All Available Tools

Keep a close eye on financial accounts. Daily balance alerts are great snapshots, and monthly/quarterly reports help you identify both positive and negative trends.

Increase your income if possible. Drive for a ride-sharing company, pick up a freelancing gig online, or help neighbors with their chores on the weekends. Then, spend the extra money on the two priority areas (saving and credit building) mentioned above.

Responsible credit use is important as well, because borrowing money and paying it back makes you a much more attractive borrower to potential lenders. When future financial emergencies arise, and they will, installment loans are usually good things. They are very convenient and the repayments often get reported to credit bureaus. Just be sure to make timely repayments, because the interest charges are often high.

With a little help, you have the power to recover from anything, even a financial disaster.

« The Basics Of Choosing The Right Mattress
How To Add More Excitement To Your Life »

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recipe Rating




Primary Sidebar

Welcome to Our Wabi Sabi Life

Hi and Welcome to Our Wabi Sabi Life, where we are loving our Perfectly Imperfect Life. Things around here are not perfect but it is perfect for us!

Life is crazy but we are living our best lives. We love to share the most DELICIOUS RECIPES and FUN CRAFTS to help you eat well and have fun.

Read our About page to learn more about us, learn more about working with me, or email me at
[email protected]
.

Useful Sites

Buy fashion girls boots from DHgate.com

  • Recent
  • Food
    • Weight Watchers
    • Keto
    • cost per recipe
  • Fun & Travel
  • DIY & Crafts
  • Family Life
  • Holidays
  • Gift Guide
  • Shop

Footer

Our WabiSabi Life is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License.

We are a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for us to earn fees by linking to Amazon.com and affiliated sites.

MEDIA KIT     CONTACT ME    PRIVACY ACCESSIBILITY

Copyright © 2022 ·Our Wabi Sabi Life· ALL RIGHTS RESERVED