One of the most common myths about money is that there's a certain point where we no longer have financial worries or stressors. In a recent survey, almost one third of respondents earning over $150,000 (£114.6k) in the US stated that they were concerned about paying their bills, highlighting how more money doesn’t automatically mean fewer problems.
The reality is that however much we earn or plan for the future, there are events outside of our control that we can't foresee. When they happen, these unexpected events can cause a sudden shock to our financial circumstances.
One of the many benefits of prioritising your financial wellbeing and building money management habits is that you can arm yourself with the toolkit to navigate these tricky situations. Here are the key steps to stay calm and in control if you - or someone you know - are facing a stressful financial curveball.
© Pheelings MediaThink head over heart
When life events happen that throw us off course, whether it's a sudden loss of income or emergency housing repair required, the first thing to do is take stock of the situation in front of you and think objectively where possible. Although it’s instinctive to panic, try to stay calm and assess the challenge you’re facing from an outsider's perspective. Look at the practical implications of the turn of events, and lay out all of the numbers in front of you so you can see the full picture.
The more you can remove emotion from dealing with your financial situation, the easier it is to make level-headed, long-term decisions. It's completely natural that a shock event will be stressful, so allow these emotions to come and go before you look at the financial implications of any changing circumstances. If you're finding it difficult to focus on the figures, speak to a friend or family member who can help you assess the situation.
Go back to budget basics
If the unexpected turn of events means that your income is going to be reduced or you have an unforeseen expense to cover, the first port of call is reviewing your budget. Aim to be resourceful where you can and look for expenses that you can tweak or cut out altogether.
© iStockLook at your regular monthly spending and find any bills you can negotiate or reduce, or simple swaps you can make to cut down your overall outgoings. Get savvy with your shopping and plan ahead, so that you can avoid last-minute spending on unnecessary items.
Seek support when you need
If you find yourself in a situation where you may struggle to make ends meet and your financial commitments feel overwhelming, speak to your bank, lenders and service providers about your changing circumstances. Banks and utility providers typically have policies in place to help customers in financial difficulty and will try to assist where they can.
Don’t forget that banks and financial institutions have a duty of care to their customers, as well as support teams trained to help customers who are struggling with their financial commitments, so don't be afraid to pick up the phone and seek support. If you find yourself dealing with debt, contact a debt charity such as StepChange or National Debtline to access free, impartial debt advice.
Give yourself a break
© iStockTake care of your mental wellbeing by doing the small things to stay afloat. There are several things we tend to do when things go wrong, from blaming ourselves to retreating from our friends and family.
RELATED: How Hailey Bieber, Rihanna and Selena Gomez made celebrity beauty brands a $1 billion industry
It's understandable that you may want to hide from the world when things get tough, but it's important to keep doing little things every day that keep you moving forward - whether that’s getting outdoors for a walk around the block or having a bath to wind down before bed. Finally, remember that whatever challenge you're facing, you are not your financial situation.
Ellie Austin-Williams is the author of Money Talks, a Lifestyle Guide for financial wellbeing. Find her on Instagram at @thisgirltalksmoney.
