5 Steps to Recovering From a Financial Setback

Almost everyone in the world has experienced at least one financial disaster in their lifetime. But what sets the survivors apart is their ability to bounce back.

Of course, bouncing back can take time, patience, and a little creativity. The important thing is not to dwell on your mistakes, but to pick yourself up and start over before you have too much time to think about it. Here are five steps you should take to help you do just that.

Take out a short-term loan

Depending on the circumstances of your particular situation, traditional loans may be hard to get. This is especially true if you’ve just lost your job or if your credit is less-than-perfect.

In these situations, you can turn to companies like Eastern Loans to get you out of a bind. These types of loans can see you through a gap in employment, a medical emergency, or any other sudden change in your finances.

Cut back on expenses

During a financial crisis, you’ll probably find it necessary to cut back on expenses immediately. And these cuts can feel brutal in the beginning, especially if you’re typically a spender. But this will also help you out of a bind, possibly even better than the other solutions.

You might even find you can live on less than you thought. Some examples of budget cuts you can make are to stop eating out, cancel any subscriptions you have, and avoid expensive habits like smoking or drinking.

You’ll probably find out during your budget cuts that you’re spending way too much on a lot of things. Call your cable company and ask them if they have a cheaper plan. Start drinking tap water instead of bottled. The possibilities are endless.

Host a fundraiser

It’s become pretty common for people to ask for help with the emergence of websites like GoFundMe. So you shouldn’t feel ashamed about doing it yourself. The key to making it more than just handouts is to offer something in return, like a party or dinner.

Think of it as a way to spread cheer, gather friends and family, and have some fun. You don’t even have to structure it like a fundraiser if that makes you uncomfortable. Just ask for donations to help pay for the party. But if you can have a sense of humor about the situation, that’s all the better.

Look into a dunk tank rental and let people pay to drop you in the water. Ask your favorite cousin to cook up some barbecue and set up the karaoke machine. The people who love you will be happy to surround you in your time of need.

Learn what sells

Finding extra money may be easier than you realize. For one thing, you probably have a lot of useless items lying around your house that you could sell.

And before you think no one would want your stuff, check out some of the sold listings on Ebay. You’ll probably be surprised to find out that people have sold things as strange as boxes of toilet paper rolls, tumbleweeds, and pine cones for profit.

Get a side job

Selling your old stuff can certainly be considered a “side job” if you do it enough. But aside from that, you can also pick up a buck or two by doing things no one else wants to do. For example, you can earn decent money walking dogs, mowing lawns, or tutoring.

But if you don’t feel up to starting your own business, you can always check with local retailers or temp agencies for seasonal or part-time work that’s flexible with your schedule.