Starting over when you are broken is not as easy as it seems. You will likely be broken, financially ruined, despondent, helpless, and looking for an opportunity to rise to your feet. As you know, things take their course. It is going to take a lot of time to get back to your previous financial situation.
Bad episodes are a part of life; they may hurt you deeply, but they actually teach you a lesson. Life keeps going on, so now is not the time to dwell in the past but to realise what went wrong and how you can start leading an everyday life.
The essential thing is to land a new job and move on, but you need to ensure you do not repeat mistakes that you made in the past.
Ways for starting a new life when you are a skint
Here are some tips that will help you keep going even in the most deplorable financial situation. Note that things will not get back to normal overnight, so patience is a virtue at this moment.
Be clear on the reason for starting over
You could be starting over out of either choice or need. If the latter is the reason, you will have to determine what kind of improvements you would like to make in your life.
For instance, overly involvement in social activities had been the cause of being strapped. You would restrict yourself from mingling with your friends.
If your poor financial situation is in the wake of overspending behaviour, you will have to mend your habits. If you are starting over out of choice, you will have to determine what your ideal life looks like.
For instance, if you plan to go abroad, you will have to prepare to acclimate to the living style there. It is crucial to brace yourself for the toughest challenges.
Move out to a more affordable place
Because your financial situation is not good at all this time, you will have to take some strict decisions. The rent of your accommodation can be higher compared to other cities. Even if you have landed a job with higher pay, it could be challenging to meet the accommodation cost. Move out to a city where you can find affordable accommodation.
Do proper research before choosing a location. Just because you have found some places cheaper than your current location does not mean that you will quickly make a decision. You cannot pack your bags and run to that place.
It is crucial to calculate the living cost, and it does not just include rent. Look for amenities as well. Food, transportation, medical facilities, everything should be taken into account.
It is likely that the rent is less than what you have been paying currently, but earnings will also be less than your current income. The pay scale varies by location. It means you simply cannot decide on the location based on rent. You will have to look at the living cost and earning opportunities and compare them with that of other cities.
List out your debts and make a repayment plan
If you have no debt or have little debt, you will not worry at all, but if you have taken on too much debt and now do not have enough money to keep up with payments, you have your back to the wall. Do not beat yourself up, as this will not obtain you out of debt.
Instead, you should work upon a plan that suits the current scenario. You cannot escape payments because debts are written off under specific conditions. List out your debts and see which one will be cleared with a one-time payment and how many outstanding dues they have.
Pay off your debts with a high-interest rate first if you cannot stick to all payments simultaneously. Talk to your lender if they have a scheme of offering you a cooling-off period. However, in the interim, try to land a good job and set aside enough money.
Some lenders do not provide payment holidays, but they pause payments. This may not seem to be a favourable option because interest keeps accruing. It depends on the lender if they would like to grant you a payment holiday.
You can talk to a debt accumulation agency if they can negotiate with your lenders. However, the lender ultimately takes this decision, so you cannot be sure about any ways to have your debt reduced. This is why you should schedule a plan that works toward the payment of all debts.
Develop a saving plan
Even if you are living on little income, you cannot stop stashing away money. As your financial situation is not good at all, you cannot spend money on discretionary expenses. Unless you recoup, you cannot spend money on dining out and nights out.
After meeting your essential expenses, the money you are left will go toward your savings account. Once you get to know how much it amounts to your total income, you can set aside that portion as soon as you receive your paycheque.
This formula of stashing away funds will perform for those who are living. Having an emergency cushion is crucial so you can meet emergency expenses when they crop up.
However, loans for bad credit and no brokers can help tide you over if you still need some money. Borrow money only when you are sure that you will repay the debt on time. These loans carry higher interest rates, so be careful.
The bottom line
Starting a new life with no money is extremely difficult. First off, you will have to find out where you need to improve. For instance, if overspending has thrown you into the mire, you will have to stop it. Budgeting can save you from losing your financial track.
Find a job with good pay and spend only on essential expenses until you recoup. Set by money, so you do not struggle to meet unforeseen expenses.