Good money management is the foundation of any successful family. You should always make withdrawals using money you already have, instead of money you haven’t earned yet. Most of us know the basics but putting good financial habits into practice is often a different story. Review several tips to help you overcome a family-wide financial emergency.
Cut Up Credit Cards
Some people make the mistake of using multiple credit cards and end up in a lot more debt than they can handle. Rely more on debit purchases than credit ones. You become mildly responsible because you cannot borrow credit or pay with no money there. Credit card companies charge high fees if you don’t make the monthly payments which can also be risky.
Sell Your Junk
As a family, make a comprehensive list of every item that is sellable and in good condition. Family heirlooms, such as jewelry and antiques, that have been passed down for generations should usually be kept off limits. Focus on less valuable items like appliances, furniture, and clothing. First, determine the value of each item based on its current age and condition. List the products for sale through online classified ads or auction sites. There are a handful of popular sites where thousands of people go to look for things to buy.
Obtain a Payday Loan
A payday loan is your best option for fast cash. During a family emergency, you cannot always depend on the other members to come up with the money. You do not want to cause further strain in your relationships with them either. So, getting an immediate, short-term loan is one solution that you should strongly consider. Just be sure you have enough time and a plan to pay it off.
Choose a Finance App
The popular and frequent use of smartphones has resulted in an explosion of apps. Finance apps allow you to manage finances from any location in the world. Some apps help you to create budgets, track your spending, and monitor your savings. Others can help you teach better spending and saving habits to kids in the household.
This solution is helpful to families that need to deal with the aftereffects of a financial crisis. They can’t go on with business as usual. It takes only one individual, who has access to a joint bank account, to wreck the finances for the entire family. Using an app helps each family member to keep a close eye on his or her actions.
No one can control the government or the increasing prices of certain products, but you can control your own financial spending and saving habits. When a financial crisis occurs, you and everyone else must work together to recover from this shortage. Make sure that your family understands the importance of teamwork in overcoming this type of crisis.
Tags: credit card, emergency, Family, finance, finance for kids, payday