Conversations around finances have always been tricky to navigate but are extremely crucial to have as we journey to setting ourselves up to reach our financial goals.
As we prepare for this week’s Art of Superwoman Webinar on The Pandemic’s Effects on Finances and Relationships, let us quickly reflect on five ways to recover from a financial setback through a conversation Olwethu Leshabane had with one of the panelists, Eunice Sibiya.
Click here to register for the webinar.
Here Are Five Steps To Recover From A Financial Setback
Common financial setbacks such as pandemic-induced adjustments, increased household bills, job losses, and divorce rates among others caught most people unprepared when the pandemic hit. Sibiya advises budgeting as it is the most effective tool that can help you strictly channel your income to where it is supposed to go.
- Have a Back-Up Plan.
The effects of the pandemic have amplified the need for multiple streams of income, which include side hustles. Sibiya expresses how our lifestyles can contribute greatly to financial setbacks if there isn’t a sustainable plan B, should the household’s finances be rattled. There are several options to venturing into a side hustle such as tapping into your talents or starting a small business. To help you decide, ask yourself
- which route you are going to choose,
- what opportunities you see in front of you, and
- what your strengths are.
- Live Within Your Means
In some cases, the solution to your financial problems may be stepping back from expensive demands that are above your financial means. Sibaya suggests downsizing as an option to balancing out your finances and emphasises the need for us to reach a level of maturity to understand that there is no shame in downsizing. Supporting each other within our communities with these decisions should be encouraged for a better financial future.
- Set Boundaries
Sibiya highlights black tax as one of the biggest financial setbacks that young black women grapple with and points out the importance of managing these demands. Distinguish between unnecessary demands and genuine ones. Family can at times be unnecessarily demanding. This can easily create a cycle of debt and cause more damage. Understanding and servicing your financial obligations as well is crucial. Having honest conversations with your family members and outlining what you can and cannot afford can help them understand your financial standing.
- Practice Financial Self-Care
Have a sit down with yourself, conduct a personal audit and identify areas that need to be better managed. Track where you are overspending, how you can pay off your debts, and where your money is unnecessarily going. Open up that bank statement and go line by line.
Separate your needs from your wants – and be gentle with yourself as you go through this process – if it means you set a calming, self-care ambiance by lighting a candle or perhaps even pulling that box of tissue closer, do so in orderto get back on track to a healthy financial future.
You can find a candle at the AoS Shop here.