SURVIVING A SCARY FINANCIAL CRISIS

How do you survive a scary financial crisis? What do you do when life is full of uncertainty and so are your finances? What are some ways that you can ensure that everything will be OK?

Obviously not every situation will be the same and not everyone will have the time to prepare in advance. When a scary financial crisis happens, it typically happens unexpectedly and without warning. What you can do right now though is make a plan. Whether you are dealing with a present situation or preparing in advance it is never too late. You might not have as much time and resources if this is a current crisis but little changes can still make a huge difference.

6 best ways to get your finances in order

1. Create a budget

2. Save Save Save

3. Eliminate unnecessary expenses

4. You do need an emergency fund, but don’t fear if you do not already have one just start today.

5. Pay off debts

6. Keep your credit in good standing and keep your debt to a minimum

Ways to free up more money?

Eliminate unnecessary expenses - As I mentioned above eliminating unnecessary expenses is extremely important. You should always strive to keep your monthly expenses to a minimum if at all possible. I prefer to pay for things in full when I have the money to prevent an extra monthly bill. If you don’t have the money to pay outright you might want to reconsider that purchase. This is why my husband and I do a "No Spend Month Challenge" from time to time. Cutting everything as much as possible for practice makes it easier when things are tough.

Make sure you stay on budget - Keep your budget up to date and know what is coming in and going out. This helps to keep you on track financially in every area. You can save much more and invest much more when you know exactly what is left each week.

Commit to the tough choices - Make yourself a promise that no matter what you are going to make a difference in your finances. You do have to make a commitment to yourself to ensure that you will stick to the plan. This is how you can really make a significant difference over time. Don’t expect immediate results. Having someone working with you to stick to your plan is another good way to stay on track. Your spouse or family or roommates are usually in the same boat, and if you trust them, they can make good accountability partners.

How we are handling our current financial situation

Today I am personally dealing with a scary financial crisis as many others around the world also are. My husband was laid off for a few weeks during the beginning of the United States Corona-virus shut down. Both of our jobs are just as uncertain as many others around the world right now although we are now currently working. My company did a round of layoffs just recently that are expected to be only temporary but they also warned of the potential for more in the future. I recognize that although we have both been many years with our respective companies neither of our jobs are completely secure. Over the next few months we will be focusing on a few areas that are important to keeping our financial life secure.

Our current focus to ensure a better financial future

1. Building our savings accounts. We used some of our stimulus to replace cash we have had to use lately.

2. Paying close attention to vehicle maintenance. Our car needs tires soon and we have been saving up for this purchase.

3. Taking care of our health. We are buying fresher food and exercising so we can save on medical costs later on and just feel better.

4. Waste less around the house. Not letting the last of the bread go stale and making more meals helps us spend less on eating out. Using less paper products means less trips to the store.

5. Find additional income ideas. For me this would be working hard to build up my website, the possibility of doing some freelance writing and a few market research opportunities that I am choosing to participate in.

6. Investing in things that we feel will hold their value over time. For example my husband has looked into the value of U.S. Silver Morgan coins over the years and has been buying a few here and there. For me this is investing a small amount weekly in certain stocks that I believe in and continuing to build my most important investment my website.

7. Buying a little extra. Having certain food items such as frozen meat or canned goods that will last us can take the edge off in uncertain times. This is just in case of temporary unemployment, certain food items jump in price or in case temporary shortage.

8. Buying more locally and supporting local businesses. How does this help us and our financial situation? By supporting local businesses we help to ensure more local jobs and more of our money stays within the local economy. This can affect far more local people and businesses overall than just the one local company that you chose to shop at. Whenever possible we are trying to purchase items that we need locally and keep more businesses flourishing within our city of Toledo, Ohio.

Best ways to ensure your own financial future

Analyze your own situation and determine your best course of action. This might mean something different for each person. Here are just a few ideas of areas that you might want to focus on currently depending on your current situation. Like I mentioned earlier we all should try to save more money, trim our budget, and bring in additional income. Also, investing can be done in many ways whether it is investing in yourself and learning something to make yourself more marketable, an investment in your current assets to keep them maintained or actual financial investments. Remember investing is just putting something of value into something that you hope will have more value in the future. This can be in the form of money, time, work etc. Don't underestimate an investment in yourself by gaining additional knowledge and skills. Hard work and patience can produce very valuable money making potential in the future.

Make sure that you are doing the absolute best in your current job. Nothing helps you land a job or keep a job as well as a good previous work history and being an asset to the company. When you are hard working and willing to be flexible the potential for future growth is far greater. This doesn't mean that you are trying to one up your coworkers, it is trying to make sure your company is successful and that you are giving your personal best everyday. If your company remains a success there is typically less need for layoffs and more potential for future opportunities all around.