Is a Financial Emergency a Wake-up Call? 

Is a Financial Emergency a Wake-up Call? 

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Is there a hidden meaning in a financial emergency?

You’re busy going about your business, diligently working at your job without thinking much about it.  Then, out of the blue, you experience a financial emergency that puts your life in a tailspin.

It could be a problem at work, like losing your job. Or a problem at home, like a fire in your kitchen. Regardless of the emergency, you need to come up with some cash fast but don’t have the money.

When this happens, do you solve the problem and move on or do you use it as a wake-up call?

How to Handle a Financial Emergency

When you experience a financial emergency, you can quickly come up with money in a few ways.

  • You can borrow it from your family or friends.
  • You can ask your bank for a personal loan.
  • You can sell something of high value at a low cost.

While these are excellent ways of getting the money that you need, they all have four potential drawbacks: you may not get as much money as you need, it may take too long for you to get the money, you may need to put up some collateral, or you may not get a flexible repayment plan.

A better way to resolve a financial situation crisis is to ask a payday alternative finance company like Maxlend at https://www.maxlend.com/installmentloan.aspx to give you the money that you need. You can raise up to $2,500, receive the money, without having to put up any collateral, and repay the money in manageable installments.

What Should You Do After a Financial Emergency?

After your financial emergency, the pressure to do something fast goes away. If you’re like most people, you pick up your life where you left off. However, if you’re an unusually perspicacious individual, you might apply a lesson from cybernetics theory.

Targets and Feedback Loops

You probably already familiar with cybernetics theory, but just don’t recognize the term. Here’s an analogy to explain it: A heat-seeking missile finds its target  — regardless of how the enemy plane weaves through the air — because it’s equipped to learn from positive and negative feedback.

What does this have to do with recovering from a financial crisis? Well, think of your crisis as a negative feedback loop. It tells you that you’re doing the wrong things for making or managing money. If you want to hit your financial target, you need to adjust your course of action.

Take a Hard Look at Your Financial Situation

After you’ve reviewed your financial situation because you’ve realized that you need to avoid panicking when you have a financial emergency, here are three questions you should ask:

What are your goals? What is it you are trying to do? What are you moving towards when you think about your financial life? If you don’t have goals, then set them. If you have goals but aren’t reaching them, then create new plans. Once you set goals or revise your plans, you will have a new sense of direction.

Where are you directing your attention? What do you spend most of your time doing to earn a living? If you’re in the wrong job, then it’s time to change. If you’re in the right job but not getting the best results, then you need to replace unproductive actions with productive ones.

What is your attitude? Your attitude determines your altitude.  A negative attitude is a sign that you feel stuck. Identify where you feel stuck and come up with a plan to get unstuck.

By answering these three questions, you will have learned from your financial crisis. If you take constructive action, the next time you have a financial crisis, you’ll just cut a check.

Steve Darwin

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