When you’re living paycheque to paycheque, then having the comforts and security that come with an emergency savings fund can seem like a far-fetched dream. After all, it can be hard enough to meet your financial obligations as it is, which makes saving for a rainy day seem difficult and impractical.
However, emergency savings accounts are so important. Sure, you can go through your days and calculate the amount in your bank account minus your upcoming bills, making sure you stay afloat. But what happens when you suddenly have an unexpected cost? A sudden household issue like a burst pipe or a serious transportation issue like a broken-down car battery require quick financial action.
How do you know what to do when you are in debt but want to still grow the savings funds you need to give yourself peace of mind? If you’re dealing with difficult debt and don’t know how you are going to pay back your creditors, then know that you’re not alone. Many people struggle with debt and many people find the help they need when they team up with a Licensed Insolvency Trustee (formerly known as a bankruptcy trustee).
In order to come up with a good plan for saving money, you have to take stock of where you’re at currently. Even if you’re someone who has a lot of debt, you need an emergency savings fund. Difficult debt can put a strain on a person’s mental health, stress levels, and personal relationships. But the right financial professionals can assess your position and guide you to financial freedom.
While it might seem scary to consider taking drastic measures to tackle your debt, sometimes that’s just what needs to be done. Allow a trustee to show you what debt relief can look like. In the case of government-regulated debt relief such as filing for bankruptcy or a consumer proposal, you’ll need to work with someone who is not only knowledgeable and experienced, but who also has an empathetic approach to your position and who makes communicating easy.
Assess and Adapt Your Living Situation
Let’s be honest, the cost of keeping a roof over our heads isn’t anything to scoff at. Rent prices are soaring in cities around the world, which means that many individuals who are trying to get a leg-up financially can find themselves in a vicious cycle of “two steps forward, one step back” every time the rent is due.
As one of the biggest expenses we have, living costs are one of the first places to go looking when trying to save money. A change to your housing such as taking a roommate or downgrading to a smaller place can free up the money in your budget that you need for savings and covering debt.
Develop a Stubborn Attitude
One thing that you’ll really need to be in the early stages of growing your savings? Persistent. You’re trying to build new habits, which means a change in your approach to saving. Try following these mantras to stay focused:
- This is real, not a game.
- I am not going to allow things to worsen.
- I will stop carrying revolving credit card debt.
Don’t put off growing your emergency savings fund any longer. In the case of a rainy day, you’ll be glad you have it. Good luck!