I have a guest post today from Jon at The Money Shed. We have been through financial changes our selves, and recently went through a finances reset to try and get ourselves back on track. We’re not the first to go through something like that and we certainly won’t be the last!
I asked Jon for some ideas on ways to make things a bit more manageable and what you can do to get your money in order. If you have any questions then leave them in the comments below, or pop over to his website to read more of his posts. Take it away Jon!
Any kind of financial change tends to happen in one of two ways. Either you know it is going to take place or it can be a real surprise.
If it’s the former then you have time to adapt and can get ready for that change in circumstances but if change appears like a bolt out of the blue then it can be a real struggle to get things back on an even keel.
I’ve recently been though one myself. I’ve cut my working hours down to 4 days a week so I can concentrate more on earning money through my personal finance blog The Money Shed as I was struggling to balance both full time work and everything TMS related.
I made the decision to reduce my hours back in October of 2016 and after informing work decided I wanted it to take place from April 2017. This gave me a few months to adapt in terms of adjusting to the loss of pay from my full time job and what that would mean for my family. With a full 6 months before the change arrived it gave me plenty of time to up the amount of money I was earning online so that me not working 5 days a week ended up having no impact at all on us financially.
I have not always been that lucky though as I remember around 12 years ago I was let go from what I thought was quite a secure job working in ICT for a law firm out of nowhere. Sadly I was at a time in my life where I didn’t really have any savings and literally had enough money to last maybe a month or two before I would have had to resort to overdrafts and credit cards to keep the bills ticking over. I was actually living on my own at that point so I suppose It was lucky I was only responsible for myself but if I had a family to support things could have well been very different.
I think as soon as you become a family unit (maybe even just as a couple!) then it’s important to have some kind of buffer fund incase the worst does happen. It’s very hard to do this I think when you are young as you tend to live to your means a lot of the time so if you get a wage that is £30k a year you will generally live to that wage and not give much of a thought to putting some away in case the worst should happen and you need it.
I’m currently a home owner and we have mortgage protection in place so that if one of us did lose our jobs or were unable to go to work due to health reasons our mortgage would continue to be paid for 12 months which I feel gives us piece of mind but I know is not something all home owners would think to set up.
Adapting to financial change is always a challenge. Hopefully if you are given enough notice you have time to adapt but I think it never hurts to put money aside each month as life will often throw you some curveballs that will challenge you as a family financially.
As someone who works HEAVILY in the earning money from home online world (my entire website is based around that!) I easily get people earning hundreds or even thousands extra from their laptops and that money can be a real life saver when they need something to live off while they adapt to the pressures in their life!
If you are challenged by financial change then just remember there is always extra money you can earn online without any difficulty, heck, you’re already online reading this blog post so you might as well get paid for using the web!
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