- 1). Do not panic when a problem arises. When you panic, the situation may appear worse than it really is, which can lead you to make bad decisions. Take a step back from the situation. Go for a walk, or do something you enjoy to de-stress. You may not be able to stop thinking about the new financial problem, but you will be able to slow down and think through how to address the issue properly.
- 2). Make a list of your expenses and bills. Determine which bills are necessities and which are luxuries, and ask yourself what you can cut. Eliminate any luxury expenses from your budget. This may mean canceling cable television, reducing your cellular plan and eating out less.
- 3). Create a budget. If your expenses exceed your income, you will have to adjust your spending. Allocate a designated amount for each expense, and do not exceed that amount. For example, if your grocery budget is $200 a month, find a way to stick to it.
- 4). Pay in cash. If you are shopping, paying in cash can help keep you from overspending because you are seeing the money leave your hand. It is much more tangible than swiping your credit or debit card. Commit to an amount you will spend, and only carry enough to cover the cost.
- 5). Live within your means. Pay off your credit card balances, and don't make purchases you can't cover. Limit credit card use to emergencies only.
- 6). Avoid late fees. Even during a personal financial crisis, always pay your bills on time. Late fees can compound your expenses.
- 7). Generate a second income. This may mean selling unused items in your home or getting a second job.
- 8). Commit to putting money away for savings so you are not unprepared if new financial problems arise in the future.
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