Are Your Finances Prone to Crises or Shaped by Them?

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In 1929, the single biggest devastating financial incident we have known, swept across the nation. The stock market crashed and although it was not the first time it had done so, it was the worst financial disaster up to that point (and since) in our nation’s history. The situation prompted many decisions and changes, both in private living circuits and in business.

This is an example of how crisis can shape finances. In response to a major national crisis like the 1929 stock market crash, investors, bankers, analysts and others usually start tossing ideas into the ring for possible restoration plans. This, in turn, often leads to new banks, new systems and new businesses, which hopefully, in time, helps get things
back on track.

On a more personal level, a person might execute what he or she believes to be a solid financial plan, perhaps amassing a satisfying amount savings, making keen investments and living in such a way as to provide for immediate needs but also to secure future financial stability. If an unexpected crisis hits, such as job loss or medical emergency, a plan that was years in the making can unravel in no time; thus, it would seem that
crisis shaped finances in that particular situation.

Another person might basically have enough money to make ends meet and perhaps even a small nest egg set aside for emergencies but can’t kick a spending habit. This could lead to using credit as cash, which in turn could create a cycle of unpaid monthly balances that prompt increase interest rates, which may ultimately lead to financial disaster. This is an example of finances being prone to crisis.

In either situation, individual decisions shape personal, national and global economies. An intricate web of single threads is stitched together to form the fabric that becomes the world’s financial quilt. It makes sense then, that the answer to the question posed in the title of this post is not one or the other but both: Finances can be prone to crises, which can also shape finances.

The good news is that most financial problems are temporary and there are typically several options available for getting things back on track when they get out of hand. The following list includes a few ideas that may apply to your current situation:

If an unpaid credit card balance is your main problem, stop using your credit card.

If you have reliable income resolve to apply a certain portion of each pay check to pay toward the balance on the card.

Even though you are experiencing financial problems at this time, it doesn’t necessarily mean you can’t invest in a savings plan. Check out what your employer has to offer or research savings ideas online.

If you owe money on utilities or other bills, call the companies and ask if an alternate payment plan is available.

Put a temporary halt on unnecessary spending.

If you believe immediate debt relief is needed, you can research solutions, such as bankruptcy. While most people consider this a drastic solution, it is often a means to wipe the slate clean and start afresh. Set achievable goals and stick to them.

Writer Bio: Judy Dudich

Judy Dudich resides in the beautiful woods of Pennsylvania, where 24 acres of land and a home-office provide the perfect setting for her children’s home-education and her own homesteading and business ventures. Life is full of blessings (and challenges!) for Judy, as a wife, mother of 10 and Grammy to six. She is a published author, whose book, “I Surrender/A Study Guide for Women” continues to encourage and support others in Christian family lifestyles throughout the world. Judy has also previously worked in the online speaking circuit. Her passion for permaculture, re-purposing, foraging and organic gardening fills her days with learning and adventure that she loves to share.

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