#1) Have a Budget or Spending Plan in Place
Building a Budget (or, “Spending Plan”) is the single most important action you can take to weather any financial storm. It’s extremely difficult to take control of your money tomorrow if you don’t know where it’s going today. Consider this plan your roadmap, and it’s going to help you reach your destination of being financially secure during hard times!
During times of financial crisis, narrowing your spending focus to the absolute essentials can help you prioritize. Dave Ramsey talks about focusing on your “Four Walls” when this happens:
Once you nail down those key areas, focus on budgeting for the near-term right now. The economy goes through cycles of being up and down. So when times are bad, focus on keeping your head above water until it turns around!