<div><strong>Introduction</strong></div><div>The prospect of a significant negative event affecting your money, such as a job loss, illness, a car accident, or a pandemic, can keep anyone awake at night. However, if you're properly prepared, the idea of something costly and beyond your control becomes less frightening.</div><div>Whatever your circumstances, the suggestions in this blog post will assist you in streamlining your financial planning and <a href="https://www.spare8.com/benefits-of-micro-investing-in-digital-gold" rel="noopener noreferrer" target="_blank">money management tips</a> budget to help you stay on top of expenses, save money, and avoid financial crisis.</div><h2>Financial Management Tips to Avoid the Financial Crisis</h2><div>The following are crucial money management tips that will undoubtedly assist you in better arranging your finances in order to avoid or prepare for any financial crisis.</div><h3>1. Begin with a financial audit</h3><div>Knowing where you stand and what may require your attention is the first step in maintaining your financial health amid a crisis. This includes taking a thorough look at your overall financial situation.</div><div>Make a financial inventory that includes the following items:</div><ul><li>A current budget that incorporates your current income and expenses</li><li>Current savings totals were compared to pre-crisis savings</li><li>The amount of debt you now owe</li><li>A list of any outstanding bills</li><li>Any balances in retirement or investment accounts</li></ul><div>This can help you decide what to prioritise when you work on your money. After you've paid your regular expenses, an up-to-date budget will show you how much money you have to devote to debt reduction or savings.</div><h3>2. Pay your bills on time</h3><div>Bills falling behind isn't ideal, but it can happen in certain circumstances. If you have past-due bills, you'll need a strategy for catching up.</div><div>The next step is to contact your lenders and service providers if you haven't already. Inquire with your landlord or mortgage company about your alternatives for getting your account up to date. The same is true for past-due utility bills, school loans, and credit card debt. Companies frequently offer payment plans for people experiencing financial hardship during a crisis.</div><div>Consider how deferment or forbearance periods for student loans, mortgage loans, or car loans may affect your future payments. If your loans continue to accrue interest and fees, your payments may be higher when you resume making them; you'll need to adjust your budget accordingly.</div><h3>3. Reconsidering debt repayment</h3><div>If you emerge from a financial crisis with debt, you'll need to consider the best strategies to pay it off.</div><div>Referring back to your crisis budget, determine how much money you can set aside for debt payback. You should have enough money to pay the minimum, but ideally, you should be able to pay more.</div><div>Next, consider strategies to make your debt more affordable and manageable so you can pay it off sooner. Consider the following examples:</div><ul><li>Transferring high-interest credit card debt to a card with a 0% APR (annual percentage rate)</li><li>Refinancing a home or a car loan to get a lower interest rate and payment</li><li>Refinancing private student loans might help you save money by lowering your interest rate and monthly payments</li><li>Consolidating federal student loans to streamline payments</li></ul><div>Interest accumulates faster than you think, so lowering the interest rate on your credit cards and other debt means that more of your payment goes toward the principal each month, allowing you to pay off the debt faster. Remember that refinancing or qualifying for a low-interest rate balance transfer is heavily reliant on your credit ratings.</div><div>You can also go over your budget again to determine what costs, if any, you can cut or eliminate to free up more money for debt payback. Streaming services, gym memberships, paid apps, and subscriptions are all examples of this.</div><h3>4. Make a savings and investment plan</h3><div>After you've built your budget and debt payback plan, the next step is to rebuild or establish savings. It may appear impossible to save in the midst of a crisis, so if you are not financially ready to save, start planning for it. During the pandemic, many people reduced their shopping, eating out, and amusement. Consider what lifestyle modifications you can make post-crisis to help you save. You can look for compatible investment options such as Digital gold, which allows you to save and build your investment in 24K pure gold digitally and works well in every situation.</div><div>Make it your priority to replenish any emergency funds that were drained during the crisis. Simultaneously, examine whether you should increase your "rainy day" reserve in case of future emergencies. If you do not have an emergency fund, you can begin investing in one with Spare8 at any time to avoid a financial crisis, as Digital gold is one of the best options that can assist you in such a circumstance.</div><div>For example, you can specify how much you need to save, divide it into several investment alternatives, and pick how much you'll save each payday. Then, automate your savings deposits so that your money can grow with as little hassle as possible. You can start with as little as Re1 and create wealth over time and consistency with Spare8's digital gold investment.</div><h2>Conclusion</h2><div>Preparing for or recovering from a financial crisis does not happen quickly. It may take several months, if not longer, for your finances to return to normal. Patience, perseverance, and the money management skills mentioned above might be your closest allies during this period as you move toward better financial health.</div><div>One thing you can do as soon as possible is begin your <a href="https://www.spare8.com/benefits-of-micro-investing-in-digital-gold" rel="noopener noreferrer" target="_blank">micro-investment journey</a>. Get started now by downloading the Spare8 app!</div><div><br></div>

The prospect of a significant negative event affecting your money, such as a job loss, illness, a car accident, or a pandemic, can keep anyone awake at night.

3 best money management tips to avoid the financial crisis

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