No matter what industry you work in, there are no guarantees. After a financial crisis—be it due to a layoff, injury, or unexpected expense—it’s critical that you regain your financial footing. Here are five tips you can use to assess your current situation, determine where you want to be, and figure out how to get there.
Assess your situation
Take a look at your current funds and any expected income as well as your regular expenses, debt payments, and new expenses. Make a note of which bills are the most important, and their due dates. If necessary, ask for an extension so that you can avoid any late fees that could further negatively impact your situation.
Set up a safety net and pay down immediate debt
Rather than risk your situation growing worse, it’s important to establish an immediate safety net. A personal line of credit is a low-interest option that gives you immediate access to funds. You can transfer these funds to your checking account so you can pay bills and other expenses while you work to regain your financial footing.
Perform an income analysis
Meeting with a financial advisor for an in-depth review of your previous income and the income you anticipate from future work will help you solidify the financial picture you’ve been building and start to make decisions about what steps to take on your road to financial recovery. During this analysis, you may determine that the time is right to make a pivot in your career to better position you for financial stability in the future.
Identify your future goals
Determine what you want to do next—like rebuilding your emergency savings, setting yourself up as an independent contractor so you’re no longer subject to layoffs, or changing your investment strategy to build your nest egg. Working directly with a financial advisor can help you take a critical eye to your goals and make intelligent prioritizations.
Take action on your plan
Now that you better understand your overall situation, your goals, and your options moving forward, it’s time to take action. Ensure you’ve checked off all of the boxes from the tips above and then take any next steps to apply for a line of credit, beef up your savings accounts, or take the next step in your career.
The best way to recover from a financial upset is to partner with someone who understands your unique financial situation and the types of events that can negatively impact you. First Entertainment’s financial advisors develop plans specifically tailored to creative professionals so you can work towards your personal, professional, and financial goals.
We’re helping professionals like you learn more about how to regain your financial footing in our upcoming webinar, “Rebuilding After a Financial Crisis.” Be sure to join us for the webinar and contact us for more information about how you can ensure your financial future.
Michelle Lee, Financial Advisor
323.845.4434
mlee@firstent.org
www.firstent.org
