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10 Powerful Tips for Financial Crisis to Help You Stay Afloat

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Honestly, this is the last thing I want to be writing.

This was not a planned blog post, but I feel compelled to write it to help you.

Currently, we are in a pandemic in 2020. As I write this, we are all at home. Schools have been shut down. The husband’s office requests all employees to work from home. Everything is being postponed.

(Update for 2021… there is always another financial crisis in the economy or your personal finances looming. It is just a matter of when – years or months – that it will hit.)

We need practical tips for financial crisis ASAP.

My heart goes out to all of the medical field, first responders, and government officials for caring for our society, taking care of the sick and doing what you believe is the best for us at the time. Thank you to all the retail employees for working crazy hours to keep shelves stocked (or to the best of your ability). My words cannot express my gratitude to you.

Regardless of how this situation happened during March 2020, it has escalated. We are in crisis mode.

Crisis mode means we are in fight or flight mode. We are not thinking rationally or clearly. We are reacting to a survival mentality. That is why you ran out to the store to grab a few things like toilet paper. (Source

So, what do we do next?

Everything that has happened will affect your schedule, time, and your wallet as well as the whole situation unfolds.

What are the best financial crisis tips on how to overcome financial problem for the future?

Let’s discuss these financial crisis tips to keep you afloat and not stressed.

Don't let the current global crisis ruin your personal finances. Here are the best money management tips to help during a crisis. The world's outbreak doesn't mean a personal financial crisis. Improve your budget and change your life with this learning. Find financial peace.

How to Overcome Financial Problems Now

Right now, you need guidance. You feel trapped and unsure about your next move. I completely get it. You and the rest of the country feel the same way.

What should you do during an economic crisis or personal money crisis?

We are going to discuss a solution for the financial crisis and specifically, not make the situation worse than it needs to be. 

1. Don’t Make Rash Decisions

As we stated earlier, the flight and fight response is already in critical overload. As much as you are trying to compartmentalize it, there is still an underlying unknown factor.

Don’t make any quick decisions as a result. Sleep on your decisions for at least 24 hours.

This is a personal finance tip that can help you save thousands of dollars over your lifetime – not just in this time of crisis.

If you are consistently over-budget or spending more money than you want, then you have a situation that needs to be addressed. It is time to learn how to stop spending money very easily and not making rash decisions is the first step.

2. Prioritize Spending & Bills

This is where you have to prioritize your bills and your spending.

For many, money is going to be really, really tight given the market conditions and possible income fluctuations, which we will dive into more on that).

This may be the time you implement your bare bones budget. That bottom line minimum amount you need to get by.

Thankfully, with social distancing, many of your temptations won’t be happening. So, your budget will get a break.

Do whatever you can to stay out of debt!! That will only make your situation worse over time. Here are ways to side hustle and make extra money during any type of crisis.

Here are other ways to make extra money fast. Plus many of the ideas are online anyway.

3. Cash on Hand

how to avoid personal financial crisis

During times of unknown, you want to have cash on hand. Cash management during a crisis will make or break your finances and your ability to pay bills.

To be specific, we mean cash at your disposal in the event you needed to spend the money.

There are many ways you can have cash on hand:

You don’t need literally need cash in hand. You need to have cash available in case you need it.

Here is my personal example:

Because we had extra “cash” on hand, we were able to stockpile more groceries and essentials to keep us maintain a 2-4 weeks supply of good. The reason cash is “apostrophes” is simple. I didn’t physically shop with cash; there was money in the bank to cover our extra spending.

Let’s be clear… you don’t need to run to the bank and withdraw hundreds of dollars. If everyone did that, then it would cause more panic and hysteria. 

4. Income Fluctuations

For many of you, your income will probably fluctuate more than ever.

You may be stuck with little hours at your job. Possibly, you may be working overtime to help keep the economy flowing. 

If you get sick, you could be out of work for 14 days and possibly more. That could cause financial hardships if your company doesn’t have paid sick leave.

We will cover more tips for the financial crisis to help with your income fluctuations. For now, just be aware, that your income may not be as consistent as it normally is. So, start to understand you may need to begin to live below your means.

Did you know about the types of income? It is one of the best ways to help stabilize you in a crisis.

5. Watch for Price Gouging

financial crisis tips picture

Unfortunately, this is a practice that is common in times like these.

When demand goes up and supply goes down, it puts a crunch on the remaining inventory available. Thus, the prices will continue to rise.

However, as a savvy money person, you can learn what is a good price for groceries and other essential. To make this easier, we have a free grocery stockpile list in our resource library.

Be on the lookout for price gouging. It will happen.

Side Note: Thrive Market (an online marketplace for groceries and other essentials) have announced and said they will not raise prices during this time of crisis and they have increased their inventory levels. Shop online now

This is unlike Amazon where prices are known to constantly change.

6. Save Extra Money

How do you manage a cash flow crisis?

This is the time to save money.

If you have never saved before, then jump on the bandwagon. You will be grateful you did.

By saving money, you are able to do things that you need to do and it will open up more opportunities. Given the completely unknown situation, it is best to save what money you can now.

If you don’t have a sufficient emergency fund established, you are probably kicking yourself for not making it a priority. Now, is a priority. Learn how much money you need for your emergency fund.

This may be the time to pick up a thrifty lifestyle or implement one of the 175+ frugal living tips.

Resources to Save Money:

7. Know Your Rights & Check for Free Medical Care

Right now, policies are being put in place by your government. So, check often to see if any of the laws passed will help you financially.

First, learn your rights as an employee. Many cities and states are requiring businesses to provide a certain amount of paid sick time. Then, you may have to look at unemployment benefits as a last resort. 

Because your employment rights vary by state, please take time to research and learn your rights for your area.

In addition, regulations are being passed so everyone has health care coverage in regards to the current pandemic. Once again, this varies extensively from one area to another.

But, many states and local municipalities are offering free testing for the current pandemic sweeping the globe.

One of the hardest things to do if you are sick is to see if your medical insurance covers the treatment you need. But, it is crucial to know ahead of time and ask for preauthorization for diagnostic tests or treatment.

Know your rights.

8. Scams

personal finance tips for crisis

Whenever there is a crisis, the scammers flock to “help.”

This makes me totally mad. My wrath towards scammers makes my blood boil given the number of hard-working folks doing their absolute best even if it means living paycheck to paycheck.

Watch out for scams. Period.

Just like with any personal finance opportunity… if it sounds too good to be true, then it probably is. When in doubt, ask a trusted friend to review the information with you.

Here is a constantly updated resources from the FDC on scams to watch out for.

9. Financial Impact on the Stock Market

This one feels like a punch to the stomach. 

While the stock market has had some of worst days in history, panic and hysteria will only make it worse.

I am not providing any guidance on what to do in this type of situation. Instead I would order one of the best investing books and start to develop your own investment strategy. 

There are many stop holds in place to make sure the market won’t crumble.

10. Don’t Panic

Lastly, don’t panic.

That is the last thing you want to do. 

Take a deep breath, hold it for 10 seconds, and slowly release your air.

Just remember this is a highly dynamic and evolving situation. Take things hour by hour. Day by day. 

One of my favorite sayings, “Therefore, do not worry about tomorrow for tomorrow will worry about itself.”

Bright Side to Financial Crisis

money management tips in crisis

Okay, this relates to the current global crisis happening in 2020.

When dealing with a personal financial crisis, it is harder to find bright spots in your current situation. We will address that in a future post.

If you know me personally, I always look for the bright spot in a dark place. To be that light to the outside world.

So, that is why we begin with the bright side in today’s crisis.

For today, we are focusing on the current crisis in the spring of 2020. However, look back, these lessons will be long-lasting.

1. Less Spending

Due to social distancing, personal spending or what we like to call FUN lifestyle luxuries is going to come to a grinding halt.

Think of it as a forced no-spend challenge.

This could be exactly what your budget and personal finances needed.

There are many benefits to spending less money. Plus it is one of the fastest ways to start your path towards financial freedom.

Side Note: While many people stockpiled essential items and groceries immediately,  spending on those categories will be higher now, but should even out over time.

For example: you spent $1200 on groceries for March and only budget $600 per month. Next month, your grocery budget should be much lower due to the extra groceries stockpiled. This is one of my favorite reasons to have sinking funds.

2. Focused on What Matters Most

bright side to personal finance crisis

As I am writing, I am surrounded by my loved ones. While the adults are working, the kids are doing school work and online learning. Check out my review of coding for kids with Bitsbox.

This is the time I am going to focus on what matters most.

During this unknown time, you can evaluate the following:

  • How you spend your time?
  • The typical patterns or habits in your day.
  • Do you focus on what matters on a daily basis?
  • Reflect on your spending.

Utmost, what truly matters to you? 

If there is anything, that can be learned in times of crisis is to draw closer to the things that matter most to you.

After this crisis is over, what steps can you take to continually focus on what matters the most?

3. Refunds

This one has a double edge sword and for many companies, they are still working on how to handle it.

Many events, activities, and travel have been canceled to help the spread of social distancing. While this is what needs to be done to help our medical facilities deal with only the sickest patients and not increase the caseload, it also means billions of dollars are not being spent in our economy. For many small businesses, the impact will be felt greatly. Even large businesses that are strapped for cash will have difficulties overcoming this.

So, if you had any buyer’s remorse on a purchase, here is your chance to get your money back with no questions asked.

If not, then you can support your favorite business in the future.

More than likely, you will start having refunds for events or activities that have been canceled. 

While this is a bright spot for you financially, it will have a ripple effect; but, these companies will be able to bounce back and the economy will get back to normal once the crisis subsides.

Next time, you go out to eat double your tip to your server.

Use These Financial Crisis Tips to Be Better Tomorrow

how to handle a personal financial crisis

If you could look back on today’s situation a year from now, what would you do differently? I know this seems very soon to consider, but it will shed light on how you react to situations and you can still modify behaviors to make changes now.

More often then not, the times we have the greatest learning and advancement come at the times when life is the hardest to navigate. Your experiences will shape you and your values.

Like in Mo Willems’ book, Because, what will be your because moment?

That because moment that caused your life to change directions.

Let’s not let this current crisis control your life forever. You are probably as sick of the word as I am. Use these money management tips to be smart in a crisis and come out better in the end.

This is how can we overcome financial problem:

  1. Don’t make rash decisions
  2. Prioritize spending and bills
  3. Cash management during a crisis (KEY!)
  4. Know income fluctuations will happen
  5. Watch for price gouging
  6. Save extra money
  7. Know your rights and check for free medical and food
  8. Be wary of potential scams
  9. The stock market will be volatile
  10. Don’t panic

You can overcome any curveball by using these tips for a financial crisis.

Be prepared with an emergency fund and a rainy day fund.

Times of crisis highlight the importance of the Money Bliss Steps to Financial Freedom.

Oh, and if y’all are forced under one roof… Here are the best parenting tips on how to work from home with kids.

Many of the top finance bloggers according to Feedspot have been posting the best ways to navigate 2020. 

Read this post to get money management tips to help you in a crisis. The current outbreak and pandemic doesn't mean you have to suffer a personal financial crisis. Use the time to improve your budget and enjoy debt free living.

Know someone else that needs this, too? Then, please share!!

Did the post resonate with you?

More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!

Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.


  1. Thanks for telling me that establishing an emergency fund can help us with dire situations and opportunities in the future. I live with my partner and as a couple, we’re never really good at money management. Maybe consulting a coach about our finances along with your tips can help.

  2. I want to enter the stock market game right now since a lot of people are getting scared of this pandemic. Thanks for mentioning developing an investment strategy with the stock market and not panic when investing. It sounds like a good idea to start investing sooner rather than later with a professional.

  3. Great Post! This crisis teaches everyone how money management is essential. You have shared great tips for money management. I have also heard about some apps for this, Do you know any app for money management?

  4. I like how you mentioned that you should consider financial decisions for at least 24 hours to avoid making impulsive mistakes. I have been thinking about opening up a new checking and savings account this month so I can start a new budgeting strategy. Your tips will definitely be helpful for me during this time of financial hardship.

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