Coping With A Change In Financial Circumstances
More often than not, when a change in circumstances with your finances occurs, it can have a huge impact on your lifestyle, especially when you have a family. Whether you or your partner has been made redundant, for one reason or another you’ve taken a pay cut, or you’ve separated from your partner and no longer have two income streams coming in, it doesn’t matter, all that matters is that your financial circumstances have changed.
The fact is that adjusting to a change in financial circumstances isn’t always easy, but if you think things through and take the right steps, it is possible not to let it have too bigger an impact on you and your family. To ensure that the changes in your circumstances don’t lead to any problems for you and your little ones, it’s worth taking note of the tips and advice below.
Tighten your purse strings
The first step to coping with a financial change of circumstances is to tighten your purse strings. If money is going to be tighter than before, you need to start thinking about implementing a strict budget that will allow your funds to go as far as possible. Whether this means saying goodbye to certain luxuries, eating vegetarian for the majority of the week, or driving less and walking more, it doesn’t matter, just as long as you find little ways to cut costs. The more money you can save, the better. Anything that you have left over don’t spend, instead place it in a savings account for a rainy day.
Consider moving to a smaller property
How much does your home cost you each month? If the answer is too much, then it could be time to consider moving to a slightly smaller and more affordable property. The fact is, if your home is going to cost you too much to run, then you have to be realistic and consider finding a home that’s more affordable. To find out what your house would be worth, go online and search ‘sell my house now’ and add the area and property size, and see what prices come up. Take the time to browse other properties in other areas, to see where you could move to that would be more affordable. Not only do you need to take your monthly mortgage payments into account, but also the cost of utilities and tax.
Be proactive about reducing your energy usage
Talking about utilities, one of the most expensive utilities tends to be energy, which is why it’s worth trying to reduce your energy usage. The less energy you can use, the lower your monthly energy bills will be, making them more affordable. Incorporating smart features into your home can help with this, such as a smart thermostat, for instance. Using a water-saving shower can reduce the energy that is used to heat the water, as can implementing a one bath per week rule for your family.
A financial change in circumstances is never nice and can be incredibly upsetting and stressful. However, there are steps that you can take to reduce the impact on yours’ and your family’s way of life; it’s just a case of being smart about the situation, that’s all.