To say the financial circumstances are currently rocky would be an understatement. If you’re facing an economic crisis, you’re far from alone right now. Even those who plan for disaster in the form of emergency funds as much as possible might find themselves on unstable ground. After all, the market changes from day to day. More and more people find themselves without work. Times feel precarious to us all.
I can’t claim expert status on how to live in such uncertainty. After all, like most of us I’ve never lived through anything remotely like the situation we face. However, during any time of personal finance calamity, there are a few primary focuses to stay afloat.
Focus on Essentials
It’s time to set aside business as usual. If you’ve had goals of paying off debt, saving for college, or purchasing a new car, it’s time to press pause. All of us need to take a moment and focus instead on surviving the current situation.
Get up close and personal with your budget and what’s really necessary. Before any other bills or financial goals, you’ll want to be sure to stay current with your rent or mortgage. You need a place to live. If you need to, cancel anything and everything to be sure you can do that. Eliminate Netflix. Pull the plug on the cable. Do everything you can to decrease your spending and increase your income to hang on to your home.
If for some reason, it doesn’t seem possible to stay current, begin conversations with your lender or landlord sooner rather than later. It may be that you can apply for some sort of hardship program or pay a portion instead of the full amount. You can’t know until you reach out, though. Start immediately.
Included in the essential category are also food, clothing, utilities, and transportation. However, be mindful that your definitions of essential food, clothing, utilities, and transportation may need to change, too. Think basics instead of luxuries. Cut whatever you can.
Right now, many utilities are also offering extensions if you’re unable to make ends meet.
If You’ve Lost Your Job
Begin by taking a deep breath. Financial anxiety is a beast that often paralyzes us into inaction. Next, be sure to share your current employment situation with your spouse if you’re married. Hiding a job loss is never wise and will break trust in your relationship. If you’re not married or sharing finances with someone, confide in a close friend or mentor.
Next, begin the path to applying for any benefits you could qualify for. Check out the state’s website for updates on unemployment and potential relief programs. As more and more people apply, the process is bound to slow. Don’t put things off or think you’ll deal with it tomorrow next week. Start now.
You’ll also want to begin searching for new work, too. Potentially, you may need to work outside your current field. Prepare your resume and cast the net wide. The longer you wait, the more difficult your search may be. Don’t delay. Be active and make wise use of your time.
If Your Job is Unsure
It might be a little more tricky if your job is a bit up in the air right now. After you begin with focusing on the essentials mentioned above, be sure you begin a budget for the next 3-6 months. Look for potential shortfalls in the days ahead.
Open a clear line of communication with your employer. Be sure to read all communication and respond when necessary. Begin investigating temporary employment positions and get your resume in working shape in your offtime.
If You’re Still Working
What a relief to have a job that has been deemed essential during this tricky season of life. Stay at the top of your game. Invest in your health. If you’re working from home, do what you can to simulate a regular working day schedule.
Again, cut back on extras, pause your goals, and pile up as much cash as you can for a larger emergency fund. While you currently have gainful employment, unknown days are ahead. Leverage your current employment while you can. If everything resumes a more “normal” reality, you can redistribute these funds to other areas of your finances.
No matter your current circumstance, resist the urge to crawl into a hole and ignore what’s going on in the world and especially in your personal finances. Be proactive. Ask questions. Seek out advice. Keep working if you can. But if you find yourself in dire straits, reach out for support from state and local programs.
We will weather this storm, friends. Take each day and change as it comes.
Our new book Your Money, Your Marriage is now available! Be sure to check out videos on managing money together on Facebook.
My book is now available: Slaying the Debt Dragon: How One Family Conquered Their Money Monster and Found an Inspired Happily Ever After. You can also check out The Debt Free Devotional
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