How to Survive Financial Burdens

Financial burdens can have various reasons from illness, over layoff to mistakes in financing your home, disadvantageous interest rates due to low credit reports, or unexpected repairs for home maintenance. This post provides tips on how to survive financial burdens by using budgeting tools, coupons, and senior discounts, buying classic clothing on sale, comparing prices, and more.

Disclaimer: I am not a financial adviser. Using the tips on how to survive financial burdens given here is at your own risk.

Why Your Financial Situation Can Change Fast

When you have followed the news, you know that the Governor of Alaska has dramatically cut the university budget. The state’s income had fallen tremendously as it mainly depends on the oil price. Alaskans have no state income tax (yet) and even get a permanent fund, which is typically paid in October (more info on the fund at the link). I work at the University of Alaska, and my department is among those under scrutiny. On top of this, like many other universities, the university might suffer decreases in tuition income as fewer students enroll for fall and due to fewer students per class to guarantee the 6 ft (1.82) distance.

I also felt that everything about cutting my department’s programs meant a huge emotional drain and mental stress. I am the founding chair of the Department of Atmospheric Sciences! Due to all these threads, I have spent some time in the last year and a half searching for authoritative resources to assess my finances and cope with stress related to them. Because these resources might help some of you during the financial burdens to assess your personal financial situation, make educated choices, and reach out for support, I will share them here.

Everyone Can Face Financial Burdens without Fault

During the COVID-19 crisis, for instance, everybody in the workforce who can’t work from home is going thru a tough financial time. Many people were furloughed or even laid off. Even those of us who worked from home worried about our future. Many companies, especially in luxury goods and fashion, had reported decreases in revenue. Small solo entrepreneur businesses were struggling or had already folded.

We wore soft pants with slides and were wearing graphic tees instead of the newest business casual style work clothing and pumps, right?

In any world or nationwide financial crisis, some industries make profits and boom, while others struggle. Whoever works in the latter sector is worrying more about their near-future financial situation.

How to Assess Your Finances

Before taking (panic) actions for changes, it’s important to know exactly what your financial spending is. In other words, see what you need as a minimum to make a living while being able to pay all your bills, loans, and mortgage. I found this website offering free interactive tools and calculators helpful in teaching me about our finances. It has easy-to-use questionnaires where you fill in your numbers. Based on your answers, you learn how to assess your finances. They offer a wide range of tools, from budgeting, home loans, mortgages, savings, financial investments, retirement planning, and so on. Their sitemap makes it easy to find the topics relevant to your financial situation.

Shop Smart to Save

Beyond groceries, footwear, and clothing, there are things that you have to replace or purchase periodically. Some purchases can be postponed, but others can’t. I wrote a guide about how you can save when shopping a while ago. Use online software to find the lowest price for an item. You can even download a Chrome extension with the app for free. However, be careful before you hit “buy now.” Sometimes a slightly higher-priced item can be cheaper because it has free shipping or a lower shipping rate. This advice is particularly important for my readers in Hawaii and Alaska, as many retailers offer free shipping, but not to these states.

Invest in Classics to Save on Your Wardrobe Without Compromising Style

If you have to buy new clothes in financially hard times, many of us gained weight during lockdown – invest in classics like wearing black and white. This easy-to-recreate look of the day just needs a black skirt and cardigan, black sandals, and a black and white top.

Use a fashion budgeting tool to create a fashion budget and stick to it.

Using Coupons Isn’t Just for Students

During my time as an exchange graduate student at SUNY Albany, I was introduced to couponing by my roommates. In Germany, no coupons existed in the 1980s. See it this way: No one gives away money for free. The financial departments calculate the full price tag of the merchandise, taking into account a certain percentage of people who will use the coupon. This means you would pay for others using the coupons when you buy it without a coupon. Check my discount codes.

Take Advantage of Being a Senior

Various stores offer a so-called senior day, where shoppers over a certain age receive 5-10% off (varies among stores). In Fairbanks, for instance, Value Village has its Senior Day on Tuesdays. Some restaurants also offer senior dishes, which are smaller and cheaper than the standard menu items. Who needs all those calories to begin with? And the doggy pack too often ends up in the trash can anyhow!

Learn to Love Yourself

Many women were raised to blame themselves for everything. Don’t go that route. You didn’t design the virus, and being furloughed or laid off has nothing to do with you. It’s all about limiting the employer’s losses to help the company survive the pandemic.  Customers spend less due to less income, which is again the pandemic’s and nobody else’s fault.

Get Help Thru the Grievance of Furlough, Layoff, and Unwanted Early Retirement

Being furloughed, laid off, or having to enter retirement early can cause emotional distress. Your job was very closely related to your daily life. It not only brought income. And your salary wasn’t only compensation for your work. Your job was also social contacts. The office was your runway fashion-wise. You spent at least eight hours a day, five days a week, 49 weeks a year for most of your adult life at work. Now you not only have to take social distancing, but also lose the social support of your work network. It’s just natural that you grieve this loss. Thus, if you struggle with managing this grievance, seek help from a professional coach to activate your inner power.

Wrapping Up: How to Survive Financial Burdens

Like September 11 changed the World forever, COVID-19 was the end of the world as we knew it. However, there are many resources out there that can help you to plan and assess your finances, provide tips, and help to change your life for the better. Take your life in your hands by using these resources. Adopt  Mademoiselle’s motto:

My life didn’t please me, so I created my life. – Coco Chanel

Photos of me: G. Kramm

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