What to do after an emergency has passed

I don’t like how this chart talks about the pandemic in the past tense, but it kind of works for the topic here. (Source: Forbes)

Undo your emergency measures

  • Draining your emergency fund / savings
  • Racking up credit card debt
  • Borrowing money from family/friends
  • Taking a loan from your retirement account
  • Rent/mortgage relief programs
  • Deal with home and basic needs first. So, for example, start by getting current with your rent and mortgage, if applicable.
  • Pay back any debts incurred. So if you borrowed money from someone, pay them back as soon as you can. As long as you’re current with your debts, use the Debt Snowball method to figure out who gets paid first.
  • Refill your savings. Did you spend down $10,000 of your savings? Well, get that built up again. Pause on retirement contributions (okay, unless your employer offers a match, in which case, just that) and get that emergency fund back up again.

Assess your preparedness

Recommit to your financial plan

Congratulate yourself

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Mike Pumphrey

Mike Pumphrey

Helping you navigate financial wellness during late-stage capitalism.

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