Though most people think of financial emergencies to consist of crises that demand huge sums to address, a lot of the time, they can happen on much smaller scales. Sudden visits to the hospital for minor illnesses and injuries, minor house repairs, car problems, and urgent care at the vet are just some examples of small financial emergencies that may not necessarily be a cause for devastating debt, but put a dent in one’s wallet all the same.
During such times, it can be difficult to manage the rest of your finances without these situations snowballing or becoming intertwined with other financial troubles. That being said, the task of handling the minor financial emergencies that happen in your life shouldn’t be more stressful than it already is, and you should be prepared to tap into some form of financial relief for them.
The key is to take on a practical and consistent approach for saving for these emergencies that can help you stay calm while working towards a solution for your problem. If you’re the type who has a little trouble managing their finances for events like the ones mentioned above, here are some actionable steps you can take:
1) Identify The Urgency And Scope Of The Emergency
The first step you should take during a financial emergency, no matter how small, is to assess the situation as carefully as you can. How much money would you need to fully take care of the emergency, and how urgently is it required?
Knowing as much allows you to better formulate a solution while being aware of the timeframe you’re working with. This can also work you towards a calmer and more objective mindset, which reduces the chances of making poor decisions based on high emotions or lack of information.
2) Consider Credit Cards Or Loans To Cover Costs
To lighten your burdens during financial emergencies, you can also use your credit card to cover for immediate costs. For example, you can charge your groceries and utility bills to your credit card and just pay at the end of your card’s billing cycle. Doing so provides you with some financial breathing room and lets you redirect your resources to the emergency currently at hand. Such situations also highlight how helpful no annual fee credit card Philippines programs are, given that you won’t have to worry about paying additional costs on top of your purchases.
Another option is to take out a loan or apply for a lending program, although you’ll want to review the loan terms and interest rates carefully to ensure you’re not creating further financial strain for yourself. Look into borrower-friendly programs like Maya Easy Credit, where you can borrow up to PHP 30,000 with minimal service fees (which will vary per user) and have the funds transferred immediately to your Maya wallet–which you can also withdraw in cash form via Maya Card. The boost in funding should make it easier to manage your emergency while reducing any negative impact on your long-term financial health.
3) Adjust Your Monthly Budget
Making necessary adjustments in your budget is also a must when it comes to handling financial emergencies of any kind. Start with assessing your current expenses and categorizing them into essentials and non-essentials. This can help you identify areas to cut back on temporarily, thus freeing up some funds to redirect to any emergency-related expenses for the meantime.
Try to spot recurring expenses such as streaming subscriptions or food delivery expenses. These may seem like small costs at first glance, but can quickly pile up over time—something that you don’t want when you’re already dealing with even a minor financial emergency.
4) Prioritize Payments And Negotiate With Creditors
It’s easy to feel overwhelmed during financial emergencies when bills start coming in, yet you’ve only got limited funds to pay them off. To ease some of your financial burdens, identify which payments are most critical and which ones can be negotiated with your creditor for a deadline extension.
For instance, if your rent is due yet you’ve spent most of your monthly budget on emergency expenses already, consider talking with your landlord to see if you can negotiate a payment extension or ask for a repayment plan that’s more manageable for you at the moment. You’ll find that many creditors may actually be willing to offer extensions and flexible payment options if you’ve got a good track record of paying your bills.
5) Sell Unused Or High-Value Items
Another solution to help you get through financial emergencies is to sell items to get some quick cash. Look into your belongings for any items you aren’t using anymore, as well as high-value items such as collectibles or electronics you can part with.
When pricing your items, be sure to take market price and the item’s condition into account as well. You can then post your wares on your social media page, where there’s more traffic and thus more chances of potential buyers seeing them. Selling items can net you extra funds for your current emergency and future ones while allowing you the additional benefit of decluttering your home.
6) Take On Side Hustles Or Freelance Work
Gigs or freelance work can be an additional source of funds during times of emergency—which, again, may happen at any point in your life. Many online platforms such as Upwork or Fiverr offer short-term tasks or projects that you can complete in your spare time to earn extra cash. Doing so can help you cover your immediate costs without taking on additional debt. Moving forward, this additional stream of income can also help you build both your primary and secondary emergency fund to better prepare you for both major and minor financial emergencies.
Before all else, when facing any type of financial emergency, it’s important to assess the situation carefully to come up with practical solutions for overcoming the trouble you’re facing. Let the strategies listed above help you manage the more minor financial emergencies in a strategic manner, ensuring that you won’t create any long-term financial strain as you recover.
Meg is an author at Cinnamon Hollow. She writes on a variety of topics sharing tips and ideas for daily life.
