5 ways to handle a financial crisis

In 2020, there are a number of events or emergency situations that could affect your finances– leading to stress and panic. Whether it be a job loss, car accident, or an illness– it is important to get the financial assistance you need to cover the situation.

In this blog post, we will go over 5 ways to earn and save money so you can properly deal with a financial crisis or emergency.

Government Assistance 

If you lost your job through no fault of your own you could be eligible for government assistance. This could include economic reasons, like financial loss due to the pandemic or permanent business closures. Although no one would like to be in this situation, it is important to use your resources. You can apply for unemployment through the state that you worked in. It is easiest to file online, and with millions of American filing for unemployment, the system has been streamlined so you can receive benefits faster. 

Take out a Loan 

Although it may seem counter-intuitive to take out a loan during a time of financial instability, it can be a great temporary option for you to take care of pressing needs. Emergency cash loans are a great resource for your urgent financial situation. With an emergency cash loan, you can receive emergency cash for unexpected expenses. 

Personal interest rates are actually very low right now that it makes more sense if your credit card has high-interest rates. In fact, the average credit card interest rate is 17.98% while personal loan rates fall around 9.41%.

Ask Friends and Family Members

While it might be embarrassing or uncomfortable, asking a close friend or family member for a personal loan can be a great way to avoid pesky interest rates. Fortunately, if you have someone who trusts you, they may gladly be willing to offer support. You can draw up a contract or offer to pay a minimal interest rate if they wish. Be sure to be considerate and explain you are in an emergency situation. This can still remain a great option because your credit is not affected in any sense– leaving you in the best situation for your future. 

Stay prepared and save

Although it is difficult to predict these types of crises, remained prepared can assist you in dire times. When things are going smoothly, try to set aside money in a savings account. If you didn’t have a chance to save before the pandemic, it’s time to start planning for the future. A savings account can be vital for times like these. There are a plethora of apps that have been created to help users save, with ones that will actually take out of your bank account if you link them. Additionally, you can visit your bank to set something up that works best for you.    

Also, consider investing in stocks or potential side gigs that can make you extra money. By saving your money or investing it in ( when the time is right) you can be well prepared so you never experience a shortage. 

Minimize your monthly bills and expenses

You may not have to do it now, but start thinking about ways to cut out unnecessary bills. Do you need two gym memberships you never use? Are you paying a high amount of money for a landline you don’t touch? It may be time to start thinking about these things, so you can save more.

It also may be a good idea to think about any other daily expenses you can reduce. For example, if you have a habit of going to Starbucks for your daily coffee. However, if you spend $5 a day on coffee, that’s approximately $150 dollars a month. These small expenses add up over time and cutting these off can be a simple saving method for the time being. With the internet, there are many great food and drink recipes out there to follow from home. 

Life is unpredictable, but if there’s anything you can do to get through a tough situation, it’s to remain educated and prepared. With the right resources, you can turn a devastating financial crisis, to a short-term setback.