Assess Your Situation

When life gets unpredictable, it’s easy to get into a financial crunch. A car accident, job loss, illness, or injury can really break your everyday routine and cost you money. Navigating your finances wisely is crucial.

Begin by determining the amount of money you will need to get through your crisis. If your crisis affected your employment, and that number is bigger than what you can currently bring in, you need to find ways to bring in additional income or cut the cost of necessities like food, housing, utilities, and transportation.

Target Sources of Income and Resources

Identifying potential income and resources that can help you reduce costs for necessary expenses is essential to getting past your crisis.

  • Sell Your Stuff

    Yard sales can generate needed income in a pinch. So can selling your stuff online! Craigslist and Ebay are some probably the most established sites. But, new mobile apps like LetGo, Gone, and OfferUp are becoming more and more popular.

  • Employment

    In the digital age, work options are more flexible than ever. If your crisis affected the type of work you can do, you may be able to find employment that lets you work from home, work from a desk, or have more manageable hours. Websites like Monster, IndeedCareerBuilder, or SimplyHired may be able to help.

Make A Crisis Budget

Being strategic about spending is necessary if you want to win this battle. You can use the same tools for a crisis budget as a regular budget—like this budgeting worksheet—but with a crisis budget you really need to buckle down.

On the right is an example of a monthly budget for a two-income family. Beside it is an example of a crisis budget that families can employ if they suddenly lose one of those incomes.

You should cut all non-essential expenses when drafting a crisis budget and really identify wants vs. needs. Try to reduce all necessary expenses.

Regular Budget Crisis Budget
Income: +$3,000 Income: +$1,500
Rent/Mortgage: -$800 Rent/Mortgage: -$800
Utilities: -$200 Utilities: -$100
Cable TV/Cell Phone Plan: -$260 Cell Phone Plan: -$50
Insurance: -$250 Insurance: -$100
Car Payment: -$250 Car Payment: $250
Gas: -$60 Gas: -$50
Groceries: -$150 Groceries: -$100
Savings: +$840 Savings: +$50

Implement Your Crisis Budget

Implementing a budget is always the hardest part of the process, but it’s the most important step towards combating your crisis. Taking action is tough, but implementing your budget is how you will see results.

Accountability is crucial, so share your goals with someone who can help keep you on track.

Need a budgeting buddy? Get FREE 1-on-1 help now!

Additional Resources

Need more guidance? Here are some great articles that may help you as you face this crisis.