5 Ways to Secure Your Business & Personal Finances During Economic Hardships

There’s a whole lot of crazy going on in the world right now. To say times are uncertain is an understatement. But, that doesn’t mean that we have to run around with our heads cut off. We can actually prepare for the worst and hope for the best. I can’t tell you how important it is for your mental health to have a back up plan. When you know that you, your family, and business is safeguarding any financial situation – it’s almost like you can take a nice deep breath and sign.

That elephant is removed from your chest and you can know for certain that you will come out the other side just fine. Which leads me to my first topic – know that it’ll all be OK!

1. Know that it’ll be ok – take a deep breath and then don’t forget to keep breathing. We have good seasons in business and slow seasons in business. Just know that this is a season and don’t forget that it’ll pass.

2. Once you’ve calmed your mind, you can now start focusing on safeguarding yourself financially. To do this, you need to ensure that your basics are covered before you do anything else. By basics, I mean:

  • Food

  • Utilities

  • Shelter

  • Transportation & insurances (Health, car, homeowners/renters and life insurance)

Those are the most important items that need to be taken care of, first and foremost. If you can’t afford to pay the credit card bill - then don’t pay it if you can’t cover these basic necessities first! The credit card company can wait. You might get a couple of nasty calls – but be honest with them and say that you

Oh, and that credit score doesn’t matter when you can't afford to eat.

3. If those are all covered, be sure to also cut back on frivolous spending. Take a look at your expenses and see where you can cut back. Anything beyond food, utilities, shelter, transportation and insurances is an area that you can likely cut back on. Do the math, what does two months look like of cutting back? Probably a couple thousand dollars – at least.

Cutting back will really help with the next step in this plan!

4. Start saving that emergency fund! Now that you know where you can cut back, it’s time to start saving for an emergency fund in your personal finances. Aim for 3-6 months of bare bones living expenses.

I typically would say to save a $1,000 emergency fund and then throw everything else towards debt.

Now that you and your family are financially stable – it’s time to look at your business. I’m going to walk you through the steps to ensure that your business can support those that you contract with – make sure that you can support their families as well – but also financially support yourself and your family during any financial hardship.

5. Business tips! Cut back on expenses and start saving 3-6 months. Figure out your bare minimum paycheck that you need to live and include that in the cost

If you want a little bit more support during this time, I’m offering you a free 30 minute coaching call. So, if you are ready to feel secure in their foundation in Christ and finances during uncertain times and you’re ready for peace and to find comfort during the uncomfortable, I would love to invite you on that call!