Addiction recovery is a difficult and lengthy process, and it can be made even more complicated if someone is trying to get back on their feet financially. It is important to take the right steps to regain financial stability and success. Today, Westminster House shares some tips to help those in recovery from addiction get back on their feet financially.
Establish a Budget
Creating a budget is essential when getting back on your feet financially. A budget will help you track income and expenses so that you can determine how much money you need each month to cover your essential bills plus any additional expenses such as food, entertainment, or medical costs. It’s important to review and adjust your budget regularly to make sure you are still on track with your financial goals.
Establish an Emergency Fund
Building an emergency savings fund is key for anyone in recovery from addiction who is trying to get back on their feet financially. An emergency fund should include enough money that can cover three months of living expenses in case of an unexpected event such as a job loss or medical emergency. Having this money set aside will reduce stress in these uncertain times, so try to save as much as possible each month for your emergency fund.
Start a Low-Cost Business
Starting your own business can be an exhilarating venture, even when financial resources are limited. Low-cost business models, such as dog walking, selling products on eBay, offering virtual assistant services, or tutoring, provide viable pathways to entrepreneurship without necessitating a large initial investment. These options leverage personal skills and the digital marketplace to create opportunities that are both flexible and scalable. By focusing on areas with lower entry barriers, aspiring entrepreneurs can build a foundation for success, gaining experience and capital to possibly expand in the future.
Boost Your Credit Score
Maintaining a good credit score is important for your financial health. Whether you are applying for a loan or seeking housing, your credit score is a significant factor in the approval process. It is recommended to regularly check your credit score and identify areas that need improvement. In cases where there are inaccuracies on your credit report, you should immediately contact the creditor to investigate and remove the false information. Click here for more information on improving your credit score and ensuring a healthy financial future.
Change Jobs
If you’re thinking about changing jobs, you’ve probably already heard about the importance of a solid resume – but have you considered your cover letter? That can be just as important, since cover letters are usually the first things that prospective employers see. The goal is to be persuasive while also being succinct and direct. If you’re looking for some tips, check this out. It helps to read your cover letter out loud, too!
Pay Off Debt
Manage your debt during addiction recovery as it can quickly become overwhelming, especially if relied upon during periods of active abuse. Consistently making monthly debt payments can improve overall financial health by decreasing total outstanding balances. However, it is important to prioritize basic necessities like groceries and rent when deciding how much to pay towards debt.
Downsizing
Consider starting with a more affordable living space during the early stages of recovery from addiction until financial stability is achieved, rather than opting for an expensive option that may lead to financial strain. This will help in avoiding the risk associated with large loans and mortgages. It is essential to stay focused on the bigger picture while dealing with financial difficulties, and not become distracted by overestimating capabilities.
Avoid Risky Expenditures
Achieving financial stability requires avoiding risky spending behaviors like gambling or impulse buying online, and resisting the urge to take on unnecessary loans or credit cards without proper planning. It's recommended to focus instead on responsible habits like saving money, reducing debt gradually, and using any extra funds wisely. Remember that having savings can always come in handy for unexpected situations, but do not spend recklessly.
Recovering from addiction is a journey that involves many challenges, including financial recovery. However, with proper preparation and commitment, it is possible to overcome these challenges and regain control over your personal finances. One of the key steps is to take the time to assess your financial situation by checking your credit score and taking steps to improve it, paying down debts, and avoiding risky spending habits. These best practices can provide a sense of security and help you get back on your feet financially while focusing on your recovery journey.
Westminster House is a recovery program for women and girls across Western Canada and beyond. Call 866-524-5633.
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