5 personal finance rules you can break during a crisis

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Along with mental and physical well-being, it is now common knowledge that financial well-being is key to a secure future. It’s easy to get caught up in the glitz and glitter of the world and spend as much as you want when you want. While this is all completely fine, the critical aspects of saving and investing sometimes tend to take a backseat in such a situation. To ensure good financial health, we often set specific personal finance rules to design a budget, track income and expenses, making money management smoother and more efficient.


We often hear our parents and other elders, and even financial advisors, advising us and our children to start saving and budgeting early. The ability to manage your money wisely is one of the most valuable skills you can possess. It is both an art and a skill that must be instilled in a person from the very beginning, as it is crucial for physical, mental and financial well-being. However, in the event of an unprecedented crisis, the situation may cause us to deviate from our financial plan. At such a juncture, knowing what personal finance rules we can break is essential. We’ll see.

Dip into your safe/emergency fund

When your finances come under pressure, the simple answer would be to draw from your emergency savings, so it’s crucial to create one from day one. Remember, life is inherently unpredictable and emergency circumstances often strike without warning and require a quick response. Therefore, it is a good idea to set aside money for unforeseen or crisis situations. This will ensure that you continue to receive a portion of the funds until they are ready to be used as needed. The emergency fund should not be used for anything other than dealing with unforeseen circumstances, as it will come in handy when you need it most.

Delay EMI payments for a few days/weeks unless you are able to pay

Never go deeper into debt if you want to live a stress-free life. Even while taking out a loan, it’s crucial to look at all aspects and stay away from common lenders to avoid falling into a debt trap. While most of us may have EMI or other interest to pay, it’s best to delay paying these bills for a few days or weeks when facing a financial crisis. However, before delaying payments during the crisis, you must be regular in your payments. This will improve your creditworthiness and trust factor, and your lending organization may be more inclined to allow a slight delay.

Allocate savings to long-term needs like a house, car purchases, etc. address the needs of the immediate crisis

One lesson we have learned from the pandemic is the need to have more cash on hand. Relying on others for financial support during a crisis can have an adverse impact on your finances, as well as your long-term relationship with that person. Therefore, it is essential to invest in instruments with high liquidity so that you can quickly liquidate your investment and receive the funds in the event of a financial emergency. Instead of allocating resources to long-term demands like a house or a car, you can put your money into media or commodities that can be liquidated quickly when needed.

Invest in high-risk assets like stocks, cryptocurrencies, etc.

Investment decisions are affected by several factors. When it comes to investing, there is no one size fits all answer. So before you invest in assets like stocks and cryptocurrencies during a crisis, sit down and assess your entire financial situation. It is essential to keep an eye on the market for opportunities to buy high-quality assets at low prices.

Do not share details of all your finances with your close confidants, family members, etc.

Investing is a personal decision, as is money management. And while we generally keep our closest confidants informed about finances in general, it’s entirely acceptable not to in the event of a crisis. Although the purpose of investments and insurance is to help your family and secure your future, crises often require some drastic measures, as these can be difficult times.

Bottom line

A crisis can ruin life and disrupt our plans, so it always helps to have a backup. The above tips can come in handy if you are dealing with an unexpected financial crisis and can help you get through the tough time.

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