- Take stock of your situation
- If you can’t pay your bills, negotiate with your creditors
- Call your landlord, mortgage lender, car lender, utility company, etc. and request payment relief for a period of up to six months.
- Cut all non-essential services
- You may like Netflix, but don’t need it to live.
- Don’t take on any new debt. Debt is a four-letter word in this crisis.
- If you can’t pay your bills, negotiate with your creditors
- Plan for the worst-case scenario
- Consider starting a side business or hustle.
- Cut spending to make unemployment last longer.
- Bulk up your emergency savings
- A hefty emergency fund is the single best way to alleviate financial worries.
- If you haven’t kept sufficient cash reserves in the past, this is a wake-up call. We recommend that between 6 and 9 months of your monthly living expenses should be kept as an emergency fund.
- Avoid acting based on emotions
- Instead of reacting based on fear, take the time to consider all solutions to any financial problems you might be facing.
- It may make more sense to put expenses on a 0% credit card than to withdraw from your 401k.
- Instead of reacting based on fear, take the time to consider all solutions to any financial problems you might be facing.
- Accept that bad times come, but remember they’ll likely pass
- If you’re worried about your finances, you’re not alone. But by making a plan, reviewing your financial situation, and reminding yourself that bad times pass, you can hopefully keep your stress level to a minimum until the crisis passes.