This contributed post is for informational purposes only. Please consult a business, financial and legal professional before making any decisions. We may earn money or products from the affiliate links in this post.
There is nothing more debilitating than adding extra financial pressure to our lives. Even though we’re in the middle of fighting debt, when something unforeseen crops up, it can tip us over the edge. But there are always unforeseen circumstances in life it would seem are on a semi-regular basis. Whether it is an increase on a monthly payment, or the interest on a credit card has changed for the worst, how are we able to end up paying for these unforeseen circumstances? Is there an answer?
Does The Side Hustle Cure All?
It seems that it’s a very common solution to an ongoing problem. Getting a side hustle in place means that we are earning that extra bit of money. But is the side hustle a viable solution in the long run? When we have unforeseen financial circumstances cropping up, acquiring a side hustle is difficult, especially as you’ve got to get something up and running in a short space of time. Granted, there are websites that allow you to do freelance tasks, whether this is Freelancer or TaskRabbit, but it’s about having the foresight to prepare yourself for the eventuality that you may struggle with the financial aspect of life on occasion. In which case, a side hustle needs to be an ongoing endeavor, rather than something that we pick up and put down.
Changing Your Money-Making Strategy
When we have to cater for unforeseen circumstances, it’s not just about the money that we are making right now, but it’s about the other aspects of life that are accumulating money behind the scenes. An annuity payment is a good example, and while you can sell annuity payments to get a short-term cash injection, you’ve got to pay back into that further down the line. It’s certainly a great way to solve this problem in the short-term, but this is why we need an emergency fund as well. You can follow the 50/20/30 rule and this should provide you with the necessary tools, but it’s also about ensuring that you are able to identify the aspects of your life that can provide a passive income.
Altering How You’re Going To Pay Off The Debt
Depending on where you are in the world, there are some rules put in place to help you cope better with debt. Sometimes you’re allowed breathing space, but when something unforeseen comes up, it’s important to tackle the source head-on. It depends on the institution that you need to pay. If it’s a utility bill, calling them and discussing a payment plan could work well. However, if it’s another creditor, there are tips and tricks you can make the most of, so you are able to give yourself that breathing space. There are approaches like the debt snowball method that can help in the long run, but when we have an unforeseen circumstance arise, and our normal approach is to bury our heads in the sand, we need to change how we are going to pay this debt off.