Not everyone is comfortable with smoothly running the finances and for a constant period. As long as you are working in a reputed company and earning sufficiently, handling any sort of financial problem would not be tough for you. But remember, situations can flip around and losing employment is not a new thing nowadays. You can adjust a few days without a regular flow of income but not for many days. Your family members too insist you arrange money from somewhere.

At one point, you are fulfilling their wishes without any delay but now you have to console them to be patient. It indicates anything can happen anytime. Simultaneously, you do not want to be a loser in such a tricky situation because ‘where there is a will, there is a way’.

Of course, we cannot forget the role of the lending market, as it already boasts plenty of lending options. Some people would suggest you opt for these bad credit short term loans while some advice on another loan. But this is only the one-time solution. What about the permanent solution to tackle varied financial problems and difficulties?

PREPARATION, yes it is the biggest tool you have to counter any sort of financial mismatch into your life. If you are well-prepared, you can ensure a robust financial life; if you are well-prepared, you can have control over planned and unplanned borrowings; and if you are well-prepared, you can maintain balanced finance while on consistent and inconsistent income.

How to start your preparation? For your assistance, just take a look at what we have prepared for you under the category of Plan A, B and C.

Plan A = What You Have Done In the Past?

Many people would suggest you forget what has happened in the past and it would be better to move forward. They are correct to their points, but don’t forget, what you have done in the past? In other words, learn from your past mistakes. Make sure that those mistakes should not be repeated. Take a look at some pointers below:

Analyse where you have spent a lot in the last year

• If you have records of them, then noted down them on your diary or just create an excel sheet at your desktop

• Separate them according to their preference because most of us usually spend on our desires rather on our needs

This practice will make you understand where you have made mistakes that should be done once again now.

Plan B = What You Need to Have At Present?

Now all the past mistakes are well under knowledge, but now it is time to implement the plan for your current circumstances. One more thing is that show those mistakes to your family members too especially your spouse because collective efforts are always handy to achieve something. Here are some tips for tight budget:

• Use cash as much as possible for a few months. Don’t use your credit card excessively because, in the end, you have to return that amount from your income through monthly installments.
• Suppose if you have £2000, make sure your purchases don’t touch or cross that limit. Keep your purchases around £1000 or maximum £1500. The core idea is to save as much as possible.
• Clearing pending dues is very important for a smooth financial present. For instance, if you have applied short term loan like 12 month loans (only used as an example here), it would be better if you make the monthly repayments on each salary day or let the lender releases the amount via automatic repayment.

Plan C = How to Secure Your Future

Always remember your past doings constitutes your present and your current preparation will constitute your future. You cannot say that let’s see what will happen or ‘I will manage easily whatever the condition is’. Overconfidence will always harm your chances. Instead, what you have to do is FINANCIAL NUDGING.

• Do a calculative balance between investment, earnings and expenses. Use your regular income or gig income (if you are earning) according to these three aspects.
• Do not think too beyond that is for 10 years or 15 years. Instead, plan step by step just like for the first 5 years and then plan for the next 5 years.
• Built a future budget that works. Many people think beyond the practical things and prepare a budget that will be difficult to implement. You should not do this.

In the nutshell…

For all humans, big changes are always difficult to handle than small changes. But sometimes, they become essential when they related to your financial life. If you have continuous financial problems and difficulties, then it will be compulsory for you to do an authentic preparation. Make plans and walk in the right direction, all that you need at the moment.