How To Get Through Tough Financial Times as a Christian Millennial.

Estimated reading time: 9 minutes

Did you know we are going through tough financial times? And there are signs of an even tougher time ahead? The World Bank in September 2022 predicted that in 2023 there would be a global recession. They say that the reason for this is that there has been a rapid deterioration of growth prospects coupled with rising inflation and tightening financing conditions. Tight financial conditions reduce money circulating around. This is because of the rise in interest rates, which encourages saving to take advantage of the high-interest rates. Inflation leads to a reduction of your purchasing power and a high cost of living. I am saying all this to prove to you we are going through tough financial times. And therefore, let’s look at the signs that show we are experiencing tough financial times and how to get through these times.

Table of Contents

• Common signs prove that we are going through tough financial times.
• How then can you get through tough financial times?
  • Don’t panic.
  • Maintain your emergency fund.
  • Stick to a budget
  • Plan for the unthinkable.
• Think long-term.
• Scriptures that will anchor you during tough financial times.
• Conclusion

Common signs prove that we are going through tough financial times.

• The strengthening of the dollar amidst the weakening of other currencies. The problem with this is that it makes it expensive for other countries to import products. The value of the UK pound, the euro, China’s yuan, and Japan’s yen, among many others, have tumbled. By one estimate from Morgan Stanley, each 1% rise in the dollar index has a negative 0.5% impact on S&P 500 earnings.

First Name

Email address:

I have read and agree to the terms & conditions

Leave this field empty if you’re human:

• Because of a constant increase in prices, shoppers, the largest driver of the US economy, have held back. And with less money being spent, there has been a negative effect on production and also employment. Companies have to adjust to the decline of the movement of their products and, in turn, have stopped hiring new employees and also started laying off other workers. A rise in inflation has led to more people dipping into their savings and therefore reducing their spending habits. The rise of interest rates has also led to a rise in mortgage rates, reducing disposable income.

How then can you get through tough financial times?

Don’t panic.

The first thing you should do is to avoid panicking as it will lead you to make hasty financial decisions that will cost you. An example would be if you have invested in the stock market, acting too fast and withdrawing your funds immediately could lead to you losing all your money.

On the flip side, taking your time and not withdrawing your money could also lead to you losing all your money. The best thing in this situation is to speak to your financial advisor and ask them for the right course of action for you. There will be instances where they will tell you to hold and in other situations, they will tell you to cash out. So be informed and ask for professional advice before making any hasty decisions. Some tips that will help you avoid being in a state of worry and panic are.

• Avoid looking at the macroeconomic news. Instead, look at the news that directly affects you. After all, you cannot control what is going on in the world, but there is something you can do for yourself. Take time out from the news when you feel overwhelmed. Detaching from what’s happening can also help ease anxiety. Take some time out of the news and limit the time you spend watching the news.
• Meeting with a financial advisor will help you understand your financial position and ways you can overcome tough financial times. According to Northwestern Mutual’s 2022 Planning & Progress Study, some 54% of U.S. adults said they are or very anxious about their finances, according to the survey, conducted with Harris Poll Feb. 8-17 and based on a sample of nearly 2,500 people. However, that percentage drops to 46% for people who work with a financial advisor and 47% for those who self-identify as disciplined planners. Maybe this is the sign you needed to meet with a financial advisor.

Maintain your emergency fund.

If you don’t have an emergency fund, then this should be a sign for you to get one. After all, what will you fall back on when you experience a crisis? The goal is to save up at least 3 months of your monthly expenses. And as you do so, also ensure that your emergency fund is in liquid cash so that you can easily access it when you need it.

The savings account you choose to stash your emergency fund should also be easily accessible and you should consider things like the minimum balance and the withdrawal fee. You should also consider the number of times you can withdraw. To learn more about emergency funds, consider checking out my blog a complete guide on emergency funds for Christian millennials.

Again, you should also realize that you cannot over-stash your emergency fund. You will be hindering yourself from other investment opportunities that would yield a higher return.

Stick to a budget

Having a budget is also very essential in times of crisis. Of course, having one before any crisis should be the goal. After all, how can you know your financial position if you don’t have a budget? How will you track your financial obligations and expenses if you don’t have a structure? In order to get through tough times, you will need a crisis budget. Simply put, this is a budget that is stricter than a normal budget. This kind of budget separates the essentials from the non-essentials and helps you prioritize what you need to spend on and what you don’t. Some questions you need to ask yourself when creating a crisis budget are;

• What are some things you can do without? Expensive phone data bills, eating out, and the monthly unnecessary Amazon spending needs to go. Remember these are tough financial times so you cannot act as if everything is normal.

• What subscriptions can you downgrade or cut out completely? Do you need to have more than one music subscription? Cut one and leave one. Making these small lifestyle changes will help you in the long run. For example, spending $10 monthly might not seem as much. But in a year that translates to $120. Having 8 of these $10 monthly bills means you spend $960 yearly. Hope this helps you see the importance of a budget.

• What expenses can I not live without? These will then be your essentials. Groceries, rent, transport, and other utilities fall in this category.

Separating your needs and wants will help you create an effective crisis budget to help you navigate tough financial times. To learn more about budgeting, check out the blog A complete guide to budgeting for Christians millennials.

Plan for the unthinkable.

Having these scenarios of what you will do when the worst happens will also help you be fully prepared for tough times. So let’s say you lose your source of income, what will you do? How will you navigate the tough times? Yes, you have the emergency fund, what will you do when the funds run out? Having a backup plan is essential as it will help you bounce back after a financial crisis. Some ways you can do this is.

• Getting a part-time job. This can save you should your company or industry experience a shaking that forces layoffs. What skill can you offer to the world? Using the skills from your 9-5 to get a part-time job will go a long way. Remember, the goal is to ensure that your cup does not run dry in turbulent times. And again this part-time job could help you fund that business idea which brings me to my second point.
• What side hustle can you start that can eventually replace your full-time job? After all, companies are always laying off people so you can never be safe. Find a gap in the market and find ways to bridge that gap. You could consider teaching your skills to others that need them. You can even turn your hobby into a full-time job. Whatever you can do, find ways to create additional sources of income. Diversification is key. And those who are well-diversified succeed during tough financial times.
• Consider up-Skilling. Finding courses that you can take to position yourself well in this ever-changing world will place you well in the corporate world. Find those highly marketable skills that complement your current skills and learn them. The goal is to ensure that you always have an edge above the rest to ensure that during layoffs, you are not the first to get cut.

Think long-term.

The best time to find lucrative investments is during turbulent times. Ever heard of the covid millionaires? If you have some excess funds from your saving, you could consider opportunities that you could invest in. Remember to ask your financial advisor about the best opportunities that you can invest in. They will give you the best advice based on your financial position and your obligations. Don’t be afraid to invest in turbulent financial times. Remember Isaac? He sowed during famine and reaped a harvest that took him from rich to wealthy. In famine, invest.

Scriptures that will anchor you during tough financial times.

Philippians 4:19 NIV
And my God will supply every need of yours according to his riches in glory in Christ Jesus. 

Matthew 6:25-32 ESV
“Therefore I tell you, do not be anxious about your life, what you will eat or what you will drink, nor about your body, what you will put on. Is not life more than food, and the body more than clothing? Look at the birds of the air: they neither sow nor reap nor gather into barns, and yet your heavenly Father feeds them. Are you not of more value than they? And which of you by being anxious can add a single hour to his span of life? And why are you anxious about clothing? Consider the lilies of the field, how they grow: they neither toil nor spin, yet I tell you, even Solomon in all his glory was not arrayed like one of these.

Deuteronomy 15:6 NIV
For the Lord your God will bless you as he has promised, and you will lend to many nations but will borrow from none. You will rule over many nations but none will rule over you.

Malachi 3:10 ESV
Bring the full tithe into the storehouse, that there may be food in my house. And thereby put me to the test, says the Lord of hosts, if I will not open the windows of heaven for you and pour down for you a blessing until there is no more need. I will rebuke the devourer for you, so that it will not destroy the fruits of your soil, and your vine in the field shall not fail to bear, says the Lord of hosts.

Read also: The financial truths Christians should know.

Psalm 37:21-24

The wicked borrow and do not repay, but the righteous give generously; those the Lord blesses will inherit the land, but those he curses will be destroyed. The Lord makes firm the steps of the one who delights in him; though he may stumble, he will not fall, for the Lord upholds him with his hand.

• Proven ways of finding yourself after a crisis
• A Complete Guide On Emergency Fund For Christian Millennials.
• The 6 biggest financial mistakes Christian millennials should avoid now!
• 3 Reasons Christian Millennials Are Struggling With Budgeting.
• A Complete Guide on How to Budget for Christian Millennials.

Conclusion

It is possible for you to get through tough financial times. The goal is to be wise. God promises to order your steps because you are righteous and His child. So commit all your plans to Him and He will direct your path.

Also, remember that God is the one who gives you the ability to create wealth. You should therefore ask Him to help you by giving you a strategy that will get you through and even help you thrive in turbulent financial times. You are not doing life alone. And the God who sees the end from the beginning wants to help you every step of the way. After all, He is the source of wealth.