Financial advice in times of crisis

In life, financial crises can come out of nowhere: a job loss, medical emergencies or even an unstable economy can put our personal finances in check. If you're Hispanic living in the U.S., you're also likely to face additional challenges like sending money to loved ones back home or adjusting to a different financial system. But don't worry, there are ways to navigate these difficult times and get through it. Today I share with you some practical tips on how to get financial advice in times of crisis and take control of your finances.

1. Why is it important to seek financial advice in times of crisis?

When faced with a crisis, it's easy to feel overwhelmed and make impulsive decisions that could make the situation worse. Financial counseling helps you:

Identify areas where you can reduce expenses.
Create a plan to prioritize essential payments.
Prepare for the future with savings and investment strategies.

Having a professional who understands your reality and guides you through the process can make a big difference.

2. Evaluate your current situation

The first step to overcoming a crisis is to know where you stand financially. Make a list of:

Your income: Include everything that comes in, from your salary to additional income such as self-employment or government assistance.
Your expenses: Divide your expenses into essential (rent, food, transportation) and non-essential (subscriptions, outings, etc.).
Your debts: Includes credit cards, student loans and any other financial commitments.

For example, if you earn $3,000 per month, but your essential expenses are $2,500, you only have $500 to cover debts or savings. This initial assessment will give you clarity on how to proceed.

3. Prioritize your expenses

In times of crisis, it is crucial to differentiate between what you need and what you want. Here are some tips:

Focus on the essentials: Be sure to cover expenses such as housing, food, utilities and transportation before considering other things.
Negotiate your debts: Call your creditors and ask about options such as payment plans or temporary interest rate reductions.
Eliminate unnecessary expenses: For example, you could pause streaming subscriptions or eat out fewer times a month.

A practical example: if you spend $200 per month on streaming services, consider reducing it to one and save $150.

4. Seek support from local resources

In the United States, there are numerous organizations that offer financial advisory free or at low cost, especially for the Hispanic community. Some resources include:

HUD (Department of Housing and Urban Development): They offer advice on budgeting, debt and even eviction prevention.
United Way: Their 211 line can connect you with local programs that offer financial assistance.
Community banks or credit unions: Many have educational programs and one-on-one counseling.

5. Create an emergency fund

While saving during a crisis may seem impossible, having an emergency fund gives you peace of mind for the future. Start small:

Set achievable goals: Save $5 or $10 per week. Over time, this amount will grow.
Automate your savings: If you can, set up an automatic transfer from your main account to a savings account each month.

For example, if you save $20 per week, you will have $1,040 in a year. That money can cover unexpected expenses such as car repairs or a medical bill.

6. Consider additional income

If your current income is not enough, looking for ways to earn extra money may be a temporary solution. Some ideas include:

Freelance work: Platforms like Upwork or Fiverr allow you to offer services in design, writing or translation.
Sale of articles: Use apps like Facebook Marketplace to sell things you no longer need.
Temporary jobs: Many retailers hire additional staff at certain times of the year.

For example, if you sell unused items for $500 and do freelance work that generates $200 per month, you will have added $2,900 to your annual income.

7. Protect your credit score

In a crisis, it might be tempting to ignore debt, but that will affect your credit history. Instead:

Pay at least the minimum: This will avoid late fees and keep your account current.
Communicate with your creditors: Many offer financial relief plans during difficult times.
Avoid using more credit: If you can, limit your credit card purchases to the essentials.

8. Invest in financial education

Financial education is a powerful tool to avoid future crises. Take advantage of free resources such as:

Webinars and workshops: Many organizations offer online educational sessions.
Blogs and podcasts: Search for content specific to the Hispanic community.
Libraries: Many have books on personal finance that you can borrow free of charge.

A practical example: if you learn how to create an effective budget, you could save hundreds of dollars a year.

Conclusion

Financial crises are challenging, but not insurmountable. With the right advice and a little discipline, you can get through these difficult times and lay the groundwork for a more stable future. Remember that seeking financial advice in times of crisis is not a weakness, but a smart decision that will help you get through. If you start implementing these strategies today, you will be one step closer to regaining control of your finances and building a better tomorrow.