One of the common, recurring stressors in life is money. Sometimes expenses and circumstances come out of nowhere and knock us down. Almost everyone goes through difficult financial times at one point or another.
In times of rising rents and debt levels, it can feel like an impossible feat to get ahead financially. Remaining optimistic is tough. Constantly seeing stories of people paying off massive amounts of debt in short time spans or having huge saving rates can be disheartening.
It can feel like everyone else is way ahead of you when it comes to money. The ability to do anything substantial towards your finances may feel out of reach. Your situation is leaving you feeling stuck.
As someone who has been through circumstances as drastic as not always having a place to live, I know the stuck feeling. However, I also believe in the power of small steps and consistency. There is possibility of upward mobility even with a few small, consistent actions.
Small Steps Ares Better Than No Steps
It can be easy to stick your head in the sand and not want to face your financial situation. Don’t do it. Take the time to get your bearings, but afterwards, be committed to looking at your financial situation rather than ignoring it.
Have you ever heard of the fabled racing story of the turtle and the rabbit? Spoiler alert: the turtle, despite being slower, ends up winning the race.
Oftentimes, we get so caught up in thinking we need to be making huge strides in order to make progress. It’s not true. Small steps are better than no steps.
Think of some small steps you can do today or this month. If you don’t have an emergency fund, then download a round up transaction app like Qapital to save your spare change. Set up a small, weekly transfer between your checking account to your savings account. It’s possible to build an emergency fund quickly even if it’s not clear to you how you will do it.
Do something. It doesn’t have to be a grand, sweeping thing. It could be something small that will instill a habit in you that, over time, will result in something material.
Realize the Power in Doing One Thing
Sometimes, I get caught up in those “do X things by age 30 or 40” checklists. There is typically a large number of things you need to do with your finances. You have to save for retirement, have an emergency fund, cut your expenses, develop a side hustle, track your spending and so on.
Oftentimes, it can feel overwhelming. When you’re in a period of difficult financial times, doing all of those things can feel out of reach. Well, here’s the thing, you don’t have to be doing all of those things right at this very moment.
Sure, saving for an emergency fund, developing a side hustle, and tracking your spending, are all things you should be doing, but there is power in doing one thing. Start by doing just one thing to improve your financial situation.
Set up a $10 weekly contribution to your savings account, pick up a side gig using something like Craigslist, Rover, or Fiverr. Look into refinancing your student loans.
Progress comes from starting. Starting can often be the hardest part. Pick one thing you want to do to improve your financial situation and get started on that.
Focus on What You Can Control
Our minds have a tendency to think about the hundreds of things that are out of our reach. The high costs of living, the economy, and so forth. It can be hard to remove yourself from the circumstances.
Don’t let your mind focus on these things. Yes, it’s hard to not look at things out of your reach, which is why I said to not completely focus on them. Give at least some of your attention to things within your realm of control.
If an unexpected expense pops up, then look into ways to further automate your finances. Maybe you have a lot of debt to contend with, if so, look into refinancing options or balance transfer options. Many student loan providers give a small discount on your interest rate if you set up auto-pay option.
Plan Ahead of Time
Difficult financial times happen to all of us. Take some time to outline how to best prepare so you can minimize the impact when the unexpected happens again.
Create a budget, figure out the amount of savings you need to have, and take a look at your expenses.
Since going through a particularly rough financial period a few years ago, I’ve always made it a priority to contribute to an emergency fund. I may not be able to contribute huge amounts every month like some people, but I’m contributing nonetheless, so it’s giving me peace of mind.
See how you can best plan ahead. That could involve creating a debt payoff plan, contributing to an emergency fund, seeking out ways to make extra money, or a mixture of all of them.
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The ability to remain optimistic in difficult financial times can feel impossible. However, it’s within reach if you remain proactive and do small steps. The power of small steps and starting on one thing should not be forgotten.
What do you do, or what have you done, to stay optimistic in difficult financial times?
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little steps , little changes can be really important on long ways and in on long term goals, little step bigh results:P
I had more than my fair share of financial setbacks. It gets hard out there, especially when you feel like you’re working so hard for so little. I was working like crazy and still struggled from time to time. I love these tips, and I pretty much followed them when going through my financial journey. While my finances are a lot better now than they use to be, I know anything can happen, so I keep these in mind!
I agree with the small steps are better then no steps. I think it is important to take action in order to see any progress. Movement of any kind in any part of our lives will have an effect. If you are making positive movement towards your goals you will see positive effects.