When a crisis hits, it can be difficult to know what to do. Maybe you unexpectedly lost your job or had a surprise trip to the mechanic that left you feeling panicked. Following these tips may help you to stay calm, even during the unexpected.
Have a budget
Having a financial plan can help provide peace of mind during a crisis. Knowing how much money you have coming in and going out can help you stay grounded in the facts. You won't have to guess if you'll be able to make ends meet because you can see where your money is going.
Limit non-essential spending
Knowing the difference between what you want and what you need is important. Look for places in your budget where you don't need to spend money. Ordering takeout meals, shopping online, and cable TV, are all things you could cut so that you have money for essential items.
Adjust your savings plans
You might be able to find some flexibility in your budget by temporarily pausing contributions to savings. If you are setting money aside for a vacation or the holidays, you could use those funds now for your essential spending. You can also hold off investing in retirement accounts until things settle down.
It is easy to feel overwhelmed and anxious when unexpected life events happen, but being intentional with your finances during a time of crisis can help. Having a budget, limiting non-essential spending, and adjusting your savings plan can help you to stay in control. For more information about ways you can manage your finances, visit our Financial Wellness page.
This article is for general information only and not intended to provide specific advice or recommendations for any individual.