Overcoming Financial Hardships: Useful Tips

Financial hardships are nothing to be ashamed of. To get through a challenging period, it's essential to start monitoring your expenses. To solve the problem, you need to stop spending more than you earn. Caring for your physical and mental health, making smart purchasing decisions, and realistically assessing your finances will help you navigate through the crisis.

Self-Care

Step 1. Take Care of Your Health.

Focus on your health, as it is difficult to endure tough times without it. Illness can hinder your work, worsening financial struggles. Boost your immune system with a balanced diet that includes grains, fruits, and vegetables, and protein doesn't always have to come from meat.

• There are many inexpensive meals for those on a budget (you can find a few recipes here: http://www.spb.aif.ru/food/recipe/944965)

Step 2. Spend Time with Loved Ones.

Connect with friends and family. Having supportive people around during tough times helps maintain your sense of self-worth. Make time for those who appreciate you, and this will empower you.

• Emotional support contributes to greater resilience. In stressful situations, including poverty, having close ones around reduces anxiety and depression.[1] Source

Step 3. Make Future Plans.

Develop a strategy for the future. In times of poverty, it can be hard to think beyond current issues like bills and rent. However, it's important to remember that the situation won't last forever.

• Even in tough times, think about the future — it helps reduce stress levels.[3] Source
• Avoid fixating on negative scenarios. Analyzing your mistakes won't change the situation, but it can distract you from it.
• Imagine your life 5, 10, or 15 years from now: where will you live, what job will you have? Share your thoughts with a friend and ask them to do the same.
• Find joy in each day and plan small pleasures, like a walk with a friend or playing with a child, to create positive expectations.

Step 4. Acknowledge Your Abilities.

Recognize your abilities. Often, people facing financial difficulties begin to doubt themselves.

• Accept that not everything is within your control. You're facing challenges, but it's not the end. Remember that everything will change.
• Dispel negative thoughts. If you doubt your capabilities, shift your focus to positive affirmations: "I am a good person" or "I will achieve financial independence."
• Forgive yourself for mistakes. Mistakes don't define you; they are just temporary obstacles. Be kind to yourself and remember that you are still a good person.

Step 5. Monitor Your Behavior.

Keep track of your behavior. In times of financial strain, it's easy to lose control. Situations may arise where immediate relief seems necessary.

• Recognize moments when you struggle to control yourself.[7] Source You may have turned to alcohol or food to cope with emotions. Regardless of the circumstances, strive to monitor yourself and work on your behavior.
• Find positive outlets for your energy. If you feel on the verge of breaking down, engage in sports or creative activities.
• Get enough rest. Quality sleep (6-8 hours) enhances mental clarity. The better rested you are, the easier it will be to maintain self-control. Establish a sleep routine.

Smart Shopping

Step 1. Repair Old Items Instead of Buying New Ones.

Try to repair items instead of purchasing new ones. Almost everything can be fixed: shoes, clothes, appliances. For instance, by reupholstering an old sofa, you can avoid buying a new one.

• If repair isn't possible, save money for the necessary purchase.
• Avoid installment plans. Sellers may offer financing, but in the end, you will pay more than if you paid upfront.[8] Source

Step 2. Look for Bargains.

Watch for sales and discounts in stores, and visit thrift shops to save money. Focus on stores with large sales to avoid hopping from place to place.

• Compare prices. Pay attention to product volumes: sometimes one liter of juice costs 100 rubles, while 900 milliliters might also be 100 rubles. Choose the better deals.

Step 3. Buy in Bulk.

Purchase items in larger packages. This will help you save money: bulk items are generally cheaper. This applies to grains, juices, and other products. Explore the selection in your nearest stores.

Step 4. Take Advantage of Promotions.

Shop during promotions whenever possible. Discounts often apply when buying multiple units of a product. For example, two packets of grains might cost 80 rubles each instead of 100 rubles. Although you'll spend more upfront, you'll save in the long run.

Step 5. Make a Shopping List.

Before heading to the store, create a list of necessary items. This helps avoid unnecessary purchases. Only take what’s on the list and head straight home.

• Choose simple stores. In expensive boutiques, the decor is factored into the price, making items cost more than in regular supermarkets.

Seeking Help

Step 1. Find Out About Free Food Services in Your City.

Investigate if there are options for free meals in your city. Churches, shelters, and non-profit organizations sometimes distribute food to those in need.

• Some churches offer food or sell it at reduced prices.

Step 2. Learn About Food Assistance Programs.

• To qualify for food assistance, you must meet certain criteria. Check if your family falls into the low-income category.
• Criteria may vary depending on the country or region.

Step 3. Explore Potential Benefits for Low-Income Families.

Find out if you are eligible for benefits for low-income families. These benefits usually provide financial aid to families with low income.

Step 4. Inquire About Free School Meals for Children.

Check if your children qualify for free meals at school. If your family has a low income, your children may be entitled to free meals in educational institutions. There are also provisions for compensation for purchasing school uniforms.

• Children may also receive travel reimbursements.

Step 5. Learn About Municipal Housing Assistance.

Investigate the possibility of obtaining housing from the municipal housing fund. Low-income families may qualify for social housing. Social mortgages may also be available, but specific conditions must be met.

• Typically, the income of adult family members must be significantly below the national average.
• Look for information online or contact the relevant authorities.

Financial Tips

Step 1. Open a Savings Account if You Have Funds.

Open a savings account at a bank if you have savings. Choose a bank with low fees and good interest rates on deposits.

Step 2. Withdraw Cash Only from Your Bank’s ATMs.

Withdraw cash only from your bank's ATMs. Otherwise, you risk losing money on fees. Although these are small amounts, they can accumulate into significant losses over time.

Step 3. Avoid Setting Up Automatic Withdrawals.

Don’t set up automatic withdrawals. The less money you have, the higher the chance of overspending and incurring overdraft fees. Automatic withdrawals are convenient but limit your financial management.

Step 4. Live Within Your Means.

Aim to live within your means. When money is tight, it's hard to afford much, but there are ways to minimize financial risks. Don’t open new credit cards, and strive to pay off existing debts.

• Create a family budget. Divide a sheet of paper into two columns. In one, write down the total family income from all sources. In the other, list all expenses, including costs for children and pets. Subtract expenses from income. If expenses exceed income, consider where you can cut costs or find ways to increase income.
• Before purchasing anything, ask yourself: do I really need this? If not, postpone the purchase.

Step 5. Don’t Rely on a Single Source of Income.

Try not to depend solely on one source of income. Sometimes, you'll need to combine multiple jobs to support yourself. This may be inconvenient, but it creates a financial cushion in case you lose one of your income sources. If one job isn't enough, you can compensate with side gigs.

• Don’t hesitate to ask for more hours if you feel capable of handling more work. Employers appreciate initiative.
• If you have young children and can't find time for extra work, ask relatives or neighbors to help with them while you're busy.
• If commuting to work is difficult, consider carpooling with colleagues or neighbors. Explore public transport routes that might work for you.
• If you're unable to take on extra work, think about asking for a raise. If you've been with a company for at least a year, your chances of success will increase.

Step 6. Look for Higher-Paying Jobs.

Search for job openings that offer higher pay. If other companies provide better compensation for your position, don't hesitate to change jobs. Focus on your financial interests.

Step 7. Consult a Debt Advisor.

Speak with a debt advisor if you have significant debt. A specialist can help you consolidate debts or create a repayment plan.

• It's also wise to consult a financial advisor. They can guide you on managing finances and building savings. Consultations can be in-person or online.
• Be cautious. Scammers may pose as advisors and extort money. Don’t let anyone take out loans or financial documents in your name.[14] Source