Financial crises are real and they happen to all of us.
But we are still in the infancy of understanding how to manage our personal financial situation in the future.
To get started, read on to learn how you can better prepare for financial emergencies.
Consider the basics of the crisis.
If you’ve experienced one or more of the following, ask yourself if you’re prepared for your personal finances to go up in flames: 1.
You have less than $100,000 in the bank.
You can’t afford to pay your bills.
You’re struggling with your credit score.
You don’t have a mortgage or a car loan.
You need cash to make ends meet.
Your car or mortgage payments are coming due.
You are unable to afford the new home you want to buy.
Your income is declining.
You feel financially stressed.
You worry about your retirement.
You suspect you might have overdone your debt.
You think you have too much debt.
You plan on moving to a new city.
You recently sold property or moved away from your home.
You lost your job.
You’ve recently gotten married or started a new job.
You owe more than your income.
You want to get rid of debt but you’re unsure of how.
You know you have to cut back on spending.
You fear you may lose your home or a business you’re involved in. 21.
You were laid off and feel trapped.
You got a new promotion.
You get a raise but it doesn’t match your income or salary.
You didn’t have enough time to prepare for a crisis.
You haven’t had enough time for planning and communicating.
You miss work because of a family emergency.
You live paycheck to paycheck.
You work from home because you need the extra income.
You missed your vacation.
You had a breakdown.
You find yourself living with roommates, or staying at home.
You suffer from an emotional disorder.
You become anxious because of financial difficulties.
You cannot get a job because you’ve been fired.
You aren’t financially independent.
You rely on a financial institution.
You lose money because of an illness.
You stop working to pay bills or make ends serve.
You consider leaving your job or moving.
You receive health insurance through your job, but you can’t keep it. 41.
You use your credit cards more than you can spend them.
You spend more than is allowed.
You make too much money for what you make.
You lack the financial capacity to pay off your mortgage or car loans.
You face a difficult financial situation.
You experience major financial distress.
You discover you have been defrauded.
You or someone you know has been harmed by an unscrupulous financial company.
You invest heavily in your business.
You pay a lot of debt.
You incur a debt load of more than $1 million.
You depend on the government or private creditors.
You and a spouse or family member have fallen behind on child care expenses.
You own property, but your spouse or child doesn’t own it. 55.
You take out a loan and owe interest on it. 56.
You must repay the loan in full within 60 days.
You struggle to pay taxes.
You fail to pay rent or utilities.
You borrow money to finance a business venture or home purchase.
You apply for a loan for a business expense.
You file for bankruptcy.
You move out of your home and file for divorce.
You decide to sell your home for more than the value of the property you own.
You purchase a home or property.
You acquire a business.
You hire a lawyer to defend you in a financial dispute.
You buy a second home.
You sell your first home.
You go to court and sue a company for breach of contract.
You obtain a divorce.
You start a new business.
You open a new company.
You change your name.
You adopt a new spouse or adopt a child.
You choose a new profession.
You join an occupational association.
You attend a funeral or memorial service.
You donate blood.
You volunteer for a cause.
You learn to drive.
You participate in a community service.
You seek counseling.
You visit a mental health facility.
You meet with a licensed professional to address your concerns.