10 lessons from “What to do with your money when crisis hits

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A Survival Guide” by Michelle Singletary:

1. Have an emergency fund: Build up a cash reserve to cover at least three to six months of living expenses. This will provide a safety net during times of financial hardship.

2. Prioritize essential expenses: Focus on paying essential bills like rent, utilities, and food. Postpone non-essential expenses until your financial situation stabilizes.

3. Negotiate with creditors: Contact your creditors if you’re struggling to make payments. Explain your situation and ask for a reduced payment plan or forbearance agreement.

4. Seek government assistance: Explore government programs that provide financial assistance during times of crisis, such as unemployment benefits or food assistance.

5. Cut unnecessary expenses: Review your budget and identify areas where you can cut back on spending. Consider canceling unused subscriptions, dining out less frequently, and finding more affordable alternatives for entertainment and transportation.

6. Seek additional income: Consider taking on a side hustle or freelance work to supplement your income. Explore online platforms or local businesses that offer opportunities for part-time or temporary work.

7. Protect your credit score: Maintain your credit score by making timely payments on any remaining debts. Avoid taking on new debt during a crisis, as this can further strain your finances.

8. Seek professional help: Don’t hesitate to seek financial counseling if you need guidance and support in managing your finances during a crisis. Professional counselors can provide personalized advice and help you develop a plan for financial recovery.

9. Stay informed: Keep up-to-date on economic news and government policies that may affect your finances. This will help you make informed decisions and identify potential opportunities.

10. Maintain a positive outlook: Stay focused on your long-term financial goals and remain optimistic about your ability to overcome the crisis. A positive mindset can help you persevere through challenging times.
Peoplesmind