Getting through a financial crisis can be challenging. Here are some do’s and don’ts to ease stress and anxiety and regain control of your finances.


1. Identify reasons for Stress: 

If financial worries like pending bill payments, problems with a credit card, debt etc., are weighing you down, start by identifying the source of your Stress. This can help you determine your next steps.

– Make a note of all your money challenges (From the biggest to the smallest)

– Keep revisiting and reviewing these challenges every six months

2. Create a Budget:

A budget balances the fundamental aspects of financial planning directed towards getting more control of your finances. It will enable you to plan for your savings and investing, allowing you to manage your money efficiently. 

Use the LXME Budget Planner to keep track of your expenses.

3. Build an Emergency Fund:

As the name suggests, an Emergency Fund is a safety net against financial turmoil. This interruption can be due to a medical emergency, unemployment, home or car repairs, unforeseen accident, loss of regular income, or other unexpected events. It is recommended that each individual or family set aside at least 6-8 months equivalent of their monthly expenses for their emergency fund.

4. Find Multiple Sources of Income

Try earning some extra money by-

Negotiating a raise: With inflation high and a tight labour market, employers may be willing to raise wages.

– Start a side hustle: This will be suitable for earning extra income along with your full-time job. It includes tutoring, running a blog, and starting a small online business with your creative hobby, like selling your artwork, candles, soaps etc.

Work a few extra hours: If you get paid hourly or are eligible for overtime, try putting in some spare time each week.

5. Reduce Debt: 

It would help if you started clearing your dues to reduce further financial stress.

Credit card debt is a common source of financial stress unless used correctly.

You must always have a plan to pay off the debt, whether it is through loans, credit cards or any other source. To pay off your debt, try the snowball method, i.e. start paying them one at a time, starting from the lowest interest rate to the highest. Once you choose the strategy to pay off your debt, stick with it

6. Speak to someone: 

At the moment, many people may be feeling overwhelmed when it comes to money – it’s ok to ask for support. Ask your questions about your finances in our community for any guidance.

Click here to ask your questions.


1. Take More Debt

If you are already under financial stress, avoid taking on new credit card debt, loans or any other source of debt, especially with high-interest rates.

2. Spend on unnecessary expenses:

Every time you’re tempted to buy something you don’t really need, the awareness of your financial stress will slap your hand, reaching out for your wallet. While spending on needs and essentials is justified, wants can be wasteful, especially when you already stressed.

3. Spend everything from your emergency fund:

When making investment decisions based on your goals, your priority should be an emergency fund. Although an Emergency fund can help you get out of your financial stress, it is ideal that you leave some money for other unexpected circumstances..

4. Sell your investments:

During many emergencies, several investors start panicking and decide to withdraw their investments, whether at a profit or loss. However, it is essential not to touch your investments and let them grow since you may need that in the future.

5. Indulge in quick-buck schemes:

You may come across many schemes that yield higher returns over a limited period of time. Do not fall for such schemes since these can be fraudulent and will further lead to your loss and add to your stress.

While there can be many do’s and don’ts when coping with financial stress, you can curb your financial worries by planning and managing your money smartly. Though this may take some time and effort, like budgeting, tracking expenses, etc., you can get through your tough times.

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