How To Dig Yourself Out Of A Financial Hole

 In the current climate, digging yourself a financial hole can happen seemingly overnight. 

In fact, a recent study found that 60% of Americans would be unable to afford an unexpected bill of $1,000. Fortunately, there are many steps that you can take to get yourself out of this situation, saving you a great deal of stress and anxiety. Read on to find out more. 

Photo by Alexander Grey on Unsplash

Put a budget in place right away. While this may seem fairly obvious, more than two-thirds of Americans do not budget or track their spending, often landing themselves in difficult situations as a direct consequence of this. As such, the absolute best thing you can do for your finances right now is put a budget in place. 

Write down a list of your incoming and outgoings, and figure out how much you can afford to spend each month. In some cases, this may mean that you need to go without some of life's little luxuries, at least until you find yourself in a better position financially. For example, you may have to start preparing more meals at home instead of eating on the go. 

Ask for help. There are many scenarios in which asking the experts for help is necessary. For example, you wouldn’t try to do complicated plumbing work within your home without first hiring a plumber (or at least getting some advice). The same can be said when it comes to bettering your financial situation. For example, you could seek help from companies that offer comprehensive debt solutions, like Fox Miles. This will help you to see the light at the end of the tunnel, while also putting plans in place to better your financial situation every single day. 

Find ways to reduce your grocery bills. Your grocery bills are likely one of your biggest weekly expenses, even if you’ve started taking meal prepping seriously. As such, finding ways to reduce them as much as possible can be a real game-changer. 

One way in which you can achieve this goal is by hitting the shops close to closing time. This is because products that have reached their best-before date (but are still perfectly edible) will be heavily discounted at this time, allowing you to access higher-quality food for less. You may also be able to freeze the food you don’t want to eat right away. 

Beyond this, having a shopping list in hand before you go shopping can also be useful. This is because you’re less likely to buy food or ingredients that will then be wasted, as you can plan out your meals (and your expenses) ahead of time. If you’re hoping to be as frugal as possible, consider buying store-brand products instead of those with more recognised labels. They often taste pretty similar, even if  you have to add a little more seasoning to some of them. 

Focus on repaying your debts. Once you’ve started saving money around the home, make sure that you start putting the money to good use. One way in which you can achieve this specific goal is by focusing on repairing debts, such as credit card bills, as opposed to adding to your savings account. This means that you can avoid being charged interest on what you owe, putting you in the best possible position moving forward. Furthermore, watching yourself get back into the green with these accounts will be a great feeling.

If you feel as though you’re likely to slip back into negative habits as soon as these debts are repaid, consider closing your account or putting a temporary block on it. This way, you’re less inclined to spend recklessly and won’t find yourself back at square one again within a few weeks (or days). 

Find ways to have fun for free. One of the biggest challenges associated with saving money and raising a busy family is that it becomes a little more difficult to keep your kids entertained. However, this does not mean that it is impossible! In fact, there are plenty of ways in which you can have fun for free, whether that means visiting a local museum or doing something a little more adventurous, such as going horseback riding. 

While there’s no shortage of options in this regard, you should keep an eye out for ways to cut the cost of other family activities where possible. For example, booking in advance online often allows you to save money at places such as theme or amusement parks! 

You should also get into the habit of having fun at home as much as you can, especially when it comes to your own social life. For example, you could save a lot of money by inviting your friends round for a home-cooked meal as opposed to dining out, and this way you don’t have to miss out on any social activities! 

Keep calm. If you’re worried about your finances right now, you aren't alone. Fortunately, there are plenty of steps that you can take to dig yourself out of this hole, no matter how far down you may have fallen. This includes: 

• Putting a budget in place and making sure that you stick to it as closely as you possibly can
• Asking for help from experts who can help put you on the path to financial wellness, without fear of judgment 
• Finding ways to save money on your biggest expenses, such as your grocery bills
• Focusing on repaying your debts, making this a priority whenever you have some extra money left over from your budget or income
• Finding ways to have fun for free, so that you don’t have to spend the eternity of your budget each month or deal with bored children

Following the steps above is a great starting point for those looking to get in control of their finances before the summer is out. Do you have any tips of your own? Be sure to leave them in the comments below!