9 Money Moves You Need to Survive a Financial Crisis

A financial crisis can take many forms. From the loss of a job to the loss of a relationship, here’s 9 money moves you can make today to minimize its impact and get back on your feet.

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Facing a financial crisis can be one of the most stressful situations you may face in your lifetime. 

It can leave you feeling stressed and anxious, filling your thoughts day and night. The good news is that while challenging, it is possible to overcome a financial crisis.

Today, I’ve compiled the advice of several personal finance experts on how to survive a financial crisis – and come out better than before!

Step 1: Don’t Panic During a Financial Crisis

When you face a financial crisis, it can feel like your world has been turned upside down. It’s extremely easy, and understandable, to panic in this situation.

However, when you panic, you’re at risk of making rash decisions that can have a huge adverse impact on your finances and your life.

To stay level-headed, try the following things:

Breathe deep and count to 10. It may seem overly simplistic, but according to the University of Michigan, breathing exercises are a good way to relax, reduce tension, and relieve stress.

Practice mindfulness meditatation daily or whenever you feel overwhelmed

Follow a routine. A financial crisis can make you feel like you’re spinning out of control. Following a routine can go a long way to help you feel more in control of your daily activities, and your life.

Practice gratitude. When things aren’t going well, it’s important to maintain the focus on the good things. They may be small or hard to find, but I can assure you you will find them if you look for them.

I like using a gratitude journal on a daily basis to keep my focus on the positive!

Your life may seem chaotic during a financial crisis, but you can, and will, survive it!

As you practice these techniques on a daily basis, you will be able to think more clearly, which is exactly what you need to survive a financial crisis.

Step 2: Get a Clear Picture of Your Situation

One of the first steps to successfully navigate a financial crisis is to find out where you stand. This means assessing any possible income source you may have as well as all your expenses.

Once you have a clear picture of income and expenses you can start to figure out what you need to do in order to get by. 

The easiest way to do this is to put it all down on paper. 

Mark and Jeanne from everydimematters.com say: “To examine your spending, go through a few months of your bank statements. Then, you can make a list of other additional expenses you make each month.”

I recommend The Ultimate Budget Planner for this step. It’s quite easy to print and start using right away!

For a budgeting option on the go, you can try the Empower app.

Empower is one of the fastest-growing personal finance apps in the US, with 4.7 stars in the Apple app store and over 650,000 downloads to date.

It features painless budgeting, spend tracking and more. Get started with Empower today to have a host of personal finance tools in the palm of your hand!

Need additional help to come up with an effective budget? Download my FREE Guide to Budgeting today!

In this free guide, I’ve compiled the actionable steps you need to create a budget that actually works. Whether you’re starting from scratch or your current budget just isn’t cutting it, this guide is for you!

Get your FREE copy here!

Step 3: Make Sure Your Family Is On Board

Ideally, if you’re in a committed relationship, you will go through the following steps with your significant other and you will both be on the same page.

However, this may not always be the case. 

For example, if you’ve been the sole “money person” in your relationship, your financial situation may come as a surprise to your partner. 

If this is your case, have a lot of grace. Avoid accusations. Listen to any concerns and be open minded to their input.

The goal here is not to win an argument. It is to be mutually committed to make it work during this tough time. 

The same goes for your children. If you have kids, it may come as a shock to them that your normal level of spending will suddenly decrease. 

You don’t have to go into a lot of detail if you don’t want to, but letting your children know that there will be changes in your lifestyle can go a long way in setting their expectations. 

In the end, the more you can work with your family in unison during your financial crisis, the faster you’ll all be able to get back to normal!

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Step 4: Reduce Expenses to the Bare Minimum

The next step to get by a financial crisis is to cut down expenses as much as possible. 

Here’s a few areas to think about:

Variable Expenses

The first area to look into is your variable expenses. These are expenses that fluctuate over time such as gas, groceries, clothing, eating out, etc.

Brainstorm ways to save on these items!

Here’s a few ideas to get you started:

Use coupons to save on groceries and check out this post on how to significantly save on your grocery bill.

Stop eating out or keep it to a minimum. Instead, cook your own food at home easily by planning your meals in advance and shopping only for what you need.

Mrs. P&P from problemsandprojects.com says “Shop for essentials at thrift stores, consignment shops, or buy used online”.

Reduce your utility bills by being more conscious about your water and energy consumption. 

Cancel any unnecessary subscriptions using Empower’s  subscription management service. 

With Empower, not only do you get one complete snapshot of all your subscriptions, but the app will even help you cancel any unwanted subscriptions, easily putting money back in your pocket!

Use any social or charity programs such as SNAP, WIC, or anything else you may qualify for. Also, check with your local church or charity for any food drives happening in your area.

Tremaine Wills from mylastdime.com says “Ask. For. Help. and don’t feel ashamed about it!”

We all go through rough financial times at one point or another. Needing help in a financial crisis is completely reasonable, so there’s no reason to feel embarrassed about it!

The more help you can get, the faster you’ll get back on your feet.

Fixed Expenses

Even fixed expenses such as car payments, insurance, debt repayments and rent or mortgage can be cut down!

Amy Blacklock from lifezemplified.com suggests switching plans, negotiating with providers and asking about discounts. 

Call your phone, internet and insurance companies. Ask about other plans that you could switch to that would save you money. Also ask about any discounts that you may qualify for.

Many health insurance carriers for example now have discounts that you can apply towards a future bill if you complete preventive care activities. 

Michelle Jackson from michelleismoneyhungry.com suggests getting a roommate if you have the space or move in with family for the time being to save on rent or mortgage expenses.

While you may need to make some uncomfortable changes during a financial crisis, remember that this is a temporary arrangement.

Lance Cothern, CPA from MoneyManifesto.com suggests calling your creditors. Let them know your situation. See how they can work with you. 

Don’t take any expense for granted!

Almost anything can be negotiated. If you show a good faith effort to pay back your creditors, chances are they’ll give you some leeway if you explain your situation to them.

In fact, using some simple techniques, I was able to negotiate half of all my debt away. To learn how, check out this post.

Step 5: Take a Look at Your Income

The next step in safely navigating a financial crisis is to look at your income. 

Once you’ve determined what’s the bare minimum budget that you could maintain, determine if your income covers that amount fully each month.

If it doesn’t, it’s time to find new sources of income.

If You Still Have a Job:

Are you still employed? Try to increase your existing pay by either taking on more hours or negotiating a raise. You can check out this post on more ideas to increase your earnings potential!

Look for Part Time Work

Will from millionairemancave.com says “Consider part time work in the short term”. This may not be in your area of expertise or even in your field. However, flexibility is key to survive a financial crisis.

Remember that any part-time work you do during this time represents valuable income, regardless of the source. Don’t think of any job as “below you” or as a waste of your abilities. Instead, think of it as a necessary resource to keep you afloat. 

I once knew a man who lost his job as an engineer, and then refused to take any position below managerial level. Even though he had several opportunities to work in his field, they weren’t exactly what he wanted so he let them go.

As a result, he spent a full year unemployed! 

Moral of the story, don’t be like that man. It’s better to have a not so perfect job than no job at all!

A great place to find some short-term work opportunities is Fiverr, where you can offer your services as a freelancer. From graphics and design to cooking lessons, if you have a skill, chances are you can make money off of it!

Generate Extra Cash

Look through any possible source of cash or cash equivalent. Even if that means couch change!

Michelle Cagan, CPA of michelecagancpa.com suggests “looking into forgotten resources, like credit card points, old gift cards, coat pocket cash, etc.” 

Get Paid to Voice Your Opinion

Another way to generate some extra cash is to get paid by voicing your opinion.

My favorite platforms for this are:

Survey Junkie 

Signing up with Survey Junkie takes only a couple of minutes, and after you complete your profile, you can start earning money right away. 

You can choose to get paid either through PayPal or with gift cards to Amazon, Walmart and a host of other companies. 

Signing up is free and you can start making money immediately. Get started with Survey Junkie here:

PanelPlace

PanelPlace.com is an online marketplace that helps you find and discover digital products and services that can bring benefits and opportunities to you.

PanelPlace is completely free to join and you can start earning money right away with survey opportunities. 

With PanelPlace you can find many opportunities to earn and save money, continue your education, increase productivity, and more!

To get started with PanelPlace today, learn more here:

If You’ve Lost Your Job:

If you unfortunately lost your job, find out what resources are available to you. This would include unemployment benefits and health insurance continuation. 

Take advantage of any and all benefits available to you until you can find a new position.

In the meantime, be resourceful and use this time wisely.

If you do so, you could come out ahead of this situation and even better than before!

Use this time to:

Polish your resume. Be prepared for your next position with a killer resume and start applying for a new position right away.

Learn new skills. Think of the downtime as an opportunity to better yourself and acquire new skills that could make you more marketable down the road.

Reassess your priorities. It’s easy to get complacent when you work non-stop. You fall into the routine of work without giving it a second thought.

However, losing a job gives you the opportunity to take a step back and reassess your priorities.

Is the job you lost what you really want to do? 

If the answer is no, maybe this is the best opportunity to pivot into something different. 

I’ve heard countless stories from entrepreneurs and business owners who got started after a job loss.

Who knows? Maybe you could be the next one!

Sell Everything You Can. It’s amazing how much junk we tend to keep! The good news is that your junk can be valuable to someone else. 

Aaron from liveyourwage.com says “look around your house and start looking for the junk you’ve been wanting to get rid of anyway.”

Once you’ve rounded everything up, take a few pictures of each item and use apps like OfferUp or Letgo to sell your items.

Don’t be disappointed if you get less than what you expect for an item. The goal here is to get quick cash, not to make a fortune.

Remember that every bit of money helps!

Step 6: Prioritize Your Money During Your Financial Crisis

If you find that you have ANY extra money left in your monthly budget, now is not the time to make extra payments on anything.

In a normal situation, I would tell you to allocate any extra income to build your savings fund or to pay extra towards your debt. However, in a financial crisis you need to prioritize your money wisely.

This means that any money you DO have needs to go towards the basic necessities. These include:

• Housing: This would include your rent or mortgage payment. 
• Utilities: This includes water, gas, electricity, and any other utility service that would be needed for your survival during this time period.
• Food: This means groceries – not eating out!
• Transportation: If you need a car to be able to get to work, this would include your car payment, insurance payment and gas. If you use public transportation to get to work, this would mean bus fare money, a metro card, etc.

If there’s NO extra money in your budget, then the money you do have or get, whether from savings, side hustles, or any other source needs to go to cover these basic expenses keeping in mind the principles we’ve already discussed:

Try to reduce every. single. expense. 

Ask for a payment arrangement for your rent or mortgage payment. Call every utility company. Try to find a coworker that you could share a ride with.

Explore every possibility to get these expenses covered through the financial crisis. 

Step 7: Make Tough Decisions

A financial crisis may call for some tough decisions. 

You may have to go into some debt. Your credit may take a hit during this time. Whatever it is, recognize that this is temporary. As long as your absolute needs are taken care of, you will have tomorrow to repair everything else.

Bethany McCamish from hisandherfipost.com says: “Obviously going into debt is not ideal, but if you need to go into debt to get by, consider a Personal Loan.”

Lendingtree is a great place to start, as it allows you to see what you qualify for. Once you see what offers you can get, you can decide if a personal loan is right for you and your situation.

Bethany also recommends getting a 0% Credit Card. If this could be an option for you, she suggests you look for one with a long 0% period (ideally 12 to 18 months). Use it to get by during your financial crisis and then pay it off before the 0% grace period goes away. 

Lastly, if you have a lot of debts, you may want to consider debt counseling services or a debt consolidation loan as a last resort. 

Step 8: Don’t Ignore Your Feelings

Facing a financial crisis can be extremely stressful. It can cause strong feelings of anxiety, uncertainty, and doubt. It can even lead to more serious issues such as insomnia and depression. 

Additionally, as you implement this plan, you may feel turmoil and unease from the change in what you consider “normal”.

It’s important to acknowledge these feelings while you’re going through a financial crisis instead of pretending they’re not there.

Doing so will prevent you from feeling overwhelmed or even paralyzed and unable to act.

As you acknowledge these feelings and recognize that they are completely normal in this situation, they will eventually subside. 

Step 9: Find Support During Your Financial Crisis

The last step in surviving a financial crisis is to find support. 

Whether from your loved ones or a local support group, surrounding yourself with supportive individuals is crucial during this time.

A good support network will provide you encouragement during tough times and accountability throughout your financial crisis. 

These are two key elements in successfully navigating any crisis, financial or otherwise.

To find local support groups in your area, try Meetup and look for “crisis”.

You can also find Facebook groups dedicated to providing support and guidance during difficult times.

Final Thoughts

Navigating a financial crisis is one of the most difficult things you will ever experience. 

By following these steps you can ensure you’re using all your resources in the best way possible to not only overcome a financial crisis but also come out from it better than before.

Now it’s your turn. What else have you done to help you navigate a financial crisis? Share in the comments below.

And if you found this post helpful, please share it!