Smith 
Our family was all set for an amazing vacation, but things didn’t go as planned. We had just moved into a rental in Nashville, Tennessee, and discovered the school district had a "Fall Break" in October. With three school days off plus the weekend, we thought it was the perfect time for some fun.
After chatting with local parents, we learned that many Nashville families spend their fall break in 30A, a place in the Panama City Beach area of Florida. Mandy and I quickly decided on a beach trip. Unfortunately, our plans started falling apart before we even left. Our youngest son got a stomach flu but recovered just in time, only for our oldest to get sick once we arrived in Florida. Managing one sick kid is hard enough, but it all came to a head when my wife got the bug and, 90 minutes later, so did I. We spent the last night of our vacation terribly ill, but thankfully not so much that we needed an emergency room visit.
You often hear horror stories about people dealing with medical or financial crises while away. It got me thinking: What if we had to rush everyone to the emergency room or stay longer in Florida? What extra costs would we face, and how would we handle them? Fortunately, we were financially prepared, but not everyone is this lucky.
If you’re figuring out how to handle a financial or medical crisis, here are some steps:
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Always Have an Emergency Fund:
No matter your situation, an emergency fund is essential. It helps cover unexpected expenses like medical bills or car repairs. Experts suggest having 3-6 months’ worth of expenses, but start with at least $1,000 and build from there. Your fund should cover potential liabilities like deductibles or job loss. -
Plan for the Worst:
While we all hope for the best, it’s wise to plan for the worst. This includes having an emergency fund, term life insurance, disability insurance, and adequate auto and health insurance. It’s not fun, but it’s crucial if you want to avoid financial stress during emergencies. -
Live Below Your Means:
Spend less than you earn and save the rest. Living below your means makes it easier to manage your bills if an emergency arises. Too many people spend every penny they earn, leaving them vulnerable when unexpected costs come up. -
Figure Out What You Owe, and Create a Plan to Pay It Back:
If you face a financial crisis and owe money, start by tallying up all your bills. Determine how much you need to pay monthly to reduce your debt. Use credit card payment calculators to help figure out your repayment timeline, especially if you’ve had to use a credit card for emergencies. -
Handle Financial Emergencies Responsibly:
While credit cards can help during a crisis, they come with risks like high-interest rates. Explore personal loans as an option. They often have lower interest rates and fixed repayment plans, helping you budget better. Discover Personal Loans, for instance, doesn’t charge origination fees and can send funds quickly.
How to Recover From a Financial Crisis:
- Always Have an Emergency Fund
- Plan for the Worst
- Live Below Your Means
- Figure Out What You Owe and Create a Repayment Plan
- Handle Financial Emergencies Responsibly
Life is unpredictable, and emergencies happen. But with a solid plan, you can tackle them head-on. By maintaining an emergency fund, preparing for worst-case scenarios, living within your means, and managing emergencies wisely, you’ll be ready for anything.
This piece was written with paid support from Discover Personal Loans. All opinions are my own.
