What do you do if your financial future is at risk?

Si evalúo como riesgoso a mi futuro financiero, primero reviso si este riesgo es en un corto, mediano o largo plazo. Si es en el largo plazo, tengo tiempo de revisar mi planificación y realizar las correcciones necesarias para minimizar el riesgo y sanear mis futuras finanzas. Si es en el corto plazo, restructuraría rápidamente las inversiones que contribuyen con la mayor liquidez para soportar los próximos meses y realizaría luego cambios más profundos, dependiendo de las fuentes de ese riesgo.

Taking immediate, strategic steps to mitigate this risk is crucial. First, conduct a thorough review of your financial situation, including income, expenses, debts, and investments, to understand the full scope of the challenge. This review will help identify areas where you can cut expenses, reduce unnecessary spending, and prioritise essential costs. Developing a budget that reflects your current financial reality is essential, focusing on minimizing expenses and maximising savings.

Reevaluate and tighten up your criteria of what is essential and non-essential spending at this current moment, and cut as many non-essentials as you can. We can often justify overspending or specific costs to ourselves, so being objective and honest with yourself here helps! Be crystal clear on how much your Essential costs are, to the penny. If you have debt repayments to consider, investigate options to reduce payments or take payment holidays. If that's not possible - include these payments as essential - defaulting on these will lead to greater problems. If you are at risk of defaulting, talk to the creditor as soon as possible - keeping open communication with them is more likely to lead to them being open to help.

Building an emergency fund, even if it's small to start, can provide a financial buffer to help manage unexpected expenses without further jeopardising your financial stability. This fund should ideally cover 3-6 months of living expenses, but any amount can help in times of need. Always maintain a level head and strategise how to best use the available funds.

Investing in yourself by upgrading your skills or completing valuable certifications can improve your employment prospects and potential income. Education and skill development are long-term investments that can pay off by opening new opportunities. Stay informed about financial management practices, market trends, and potential opportunities for saving or investing. Regularly revisiting and adjusting your financial plan to reflect changes in your financial situation or goals is essential for maintaining financial health and security. Being proactive, adaptable, and informed are key strategies for navigating financial uncertainties and securing your financial future.