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Don’t let crises affect your personal finances: How to make a plan to protect your money

March 23, 2020

I want to share a way to shield you and this is making your anti-crisis plan.

4 min read

The opinions expressed by collaborators are personal.

Don’t let crises affect your personal finances: How to make a plan to protect your moneyDon’t let crises affect your personal finances: How to make a plan to protect your money

Just a few days ago, the Mexican authorities were confirming the presence of the COVID-19 virus within Mexican territory. Confirmed cases in Mexico City, Coahuila, Sinaloa, Estado de México (and apparently in Puebla and Nuevo León), triggered both psychosis and panic purchases among Mexicans. The result was a shortage of antibacterial gel, vitamin C, and face masks in supermarkets and pharmacies around the country.

The government asked us to remain calm, commenting that everything was under control. However, round-trip flights to Europe began to be canceled, the stock markets plummeted, Wall Street collapsed, the Mexican Stock Exchange stopped for the second time this week, Trump announced that the United States will not allow the entry of flights from Asia and Europe, NBA games were canceled, they are going to cancel the St. Patrick's Day parade in New York (which had not been canceled in 200 years)…

It looks like a global crisis, or rather, it has already become one.

And among the worst things that can affect your personal finances, is the lack of preparation for a crisis. Because of the above, I want to share a way to shield you by making your anti-crisis plan.

This plan will help you to be prepared in the presence of any risk (not just a pandemic or natural catastrophes).

Here are some tips to keep in mind when making your plan:

1. Have an emergency fund

You must have the cash that covers at least 3 months of your monthly expenses. In this way, if an emergency arises, you will be armored and have cash available.

2. Life insurance

Everyone, absolutely everyone, is vulnerable to risks, and we are exposed all the time.

You cannot leave your luck and that of your loved ones to chance. Whether it's a fall, or a car accident, life insurance will help you absorb the costs.

I always say to my students: What would be more expensive? Pay monthly life insurance, or lose everything you've worked for in an emergency?

Well, there have really been people who have lost their assets because they had to pay for a hospital.

3. Warehouse

It may seem obvious, but I recommend having a supply store in your home. Water, canned food, batteries, personal hygiene items, medicines …

When a crisis or extraordinary event occurs, it is extremely common for people to make panic purchases and end it all, or for stores to remain closed.

And also, if you are lucky enough to find what you need, they will want to charge you a lot more than the real price.

4. Optimize your tickets

Something that can affect you and your finances too much is the loss of your money.

If for some reason, during the crisis you lose your only money, you will have real problems.

For this, I advise you to have multiple sources of income, in this way, if any fails, you will not be left unprotected.

5. Stay informed

There is no worse enemy than disinformation.

In times of crisis, it is essential that you stay on top of the most relevant events, and what is happening around you. Thus, you will be better prepared and you will know how to act.

If you follow the points mentioned above, you will not lose balance when any unforeseen event arises. Do not leave to chance what may happen, take action and do not be surprised.

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