Historians point to the Great Depression of the 1930s as the most devastating financial crisis the world has ever faced. But those who are too young to remember that time have endured periods of great financial uncertainty of their own.

Inflation in the 1970s, unemployment in the 1980s, the Great Recession of 2008, and the recent COVID pandemic all tossed business markets and personal finances into turmoil. 

Other times, events like political conflict and natural disasters have upended fiscal plans. That’s not even accounting for marriage, divorce, raising a family, or health matters — personal things that make financial planning difficult and unpredictable.

During times like these, it’s tempting to delay or scale back your financial plans. But realistically, that’s never a good idea. There will always be factors out of your control, even in times of relative stability. Building wealth management skills during times of crisis can better position you for real prosperity when conditions improve. 

Here are a few approaches to take.

Set a Budget

A personal or family budget is one of the most powerful tools a person has to weather hard times — yet many people don’t even have one. 

In uncertain times, it’s crucial to allocate expenses in defined categories that help you manage money and cap excess spending. If you already have a budget, consider scaling back or cutting out certain expenses to protect your financial cushion. This isn’t a bad idea even when things are going well.

Improve Your Credit Score

Many people rely more on credit accounts during times of financial hardship. That’s understandable, but it can become a problem if credit bills become so high that they affect your ability to pay. This causes your credit score to decline, which can hold you back from certain opportunities. 

Manage your credit score by keeping up regular payments, reducing your balances, and periodically reviewing your credit report for mistakes or inaccuracies.

Start an Emergency Fund

Most financial advisors urge their clients to build an emergency fund before taking on any other financial strategy. This is commonly an interest-bearing savings account that’s meant to remain untouched until a crisis is at hand. The more you can contribute to this fund when times are steady, the more prepared you’ll be for a fiscal emergency.

Classify Your Goals

A good part of financial planning goes toward realizing things you want. But in uncertain times, those goals may take a back seat to obtain the things you need

If a person is unprepared to handle the bare necessities when setbacks arise, their chances of withstanding hard times are reduced. 

Go through all of your financial goals — even the mundane ones. Identify which ones you need to meet and which ones that you want to achieve. Make sure the balance is sound.

Consult with Mash Financial Planning

When it comes to finding a financial planner, Jacksonville, Florida residents can turn to Mash Financial Planning for help. Contact us today to set up a free consultation.