But, whether it's a medical emergency, a job loss, a natural disaster, or... let's face it, some crisis we haven't even imagined yet, it's easy to lose sight of our other goals in life - and this may exacerbate our financial difficulties.
Maintaining financial management is critical, especially during a crisis. An overdraft fee here, a late payment there, and your initial problem is now exacerbated by a financial impact that can follow you for years.
If knowledge is power, then having all of your financial information on hand might be the difference between a one-time tragedy and a long-term financial disaster.
Use digital applications for your banks and lenders to start safeguarding your money.
How to Use Phone Apps to Protect Your Finances
Downloading applications from your various financial institutions might be beneficial during a crisis, but only if you have access to everything you require. Here's how you can do it in 15 minutes.
1. Make a Comprehensive List
Begin by making a list of your monthly, quarterly, and annual invoices, as well as the firms to which you submit payments. Don't rely on your analog brain to recall them all.
Instead, check your budget or bank and credit card statements from the preceding year to refresh your memory on recurring but non-monthly costs such as vehicle registration renewal or credit card membership fees.
List your banks as well as all of your credit cards, including those you don't use on a regular basis. In a crisis, you may need access to a credit line you don't normally use, so have the account details ready.
2. Download the Official Apps
Whether it's your student loan servicer or your mortgage lender, utilizing the company's official app gives you more quick access to your information and help in the event of a crisis.
Most lenders have included simple buttons that allow you to apply for debt relief programs if you are having difficulty paying your payments. This minor convenience spares you from having to browse the company's website for a customer support number.
You'll also have simple access to your account details if you download the app. This might be useful if a catastrophe unexpectedly places you in the hospital or requires you to leave and you need to call a lender.
Saving a few minutes of stress by keeping the information on hand might make the difference between connecting with financial hardship support and allowing invoices to go unpaid. The latter might ruin your money for a long time after the crisis has passed.
3. Use App Features to Keep Your Money Safe
If you haven't already, set up automatic payments for monthly bills like your mortgage and mobile phone bill before the next disaster strikes. You don't want the power shut off during an emergency just because you forgot what day it is.
You may also set up spending alerts and restrictions for your bank accounts and credit cards, which can help you avoid those pesky overdraft penalties.
Examine the applications for other capabilities you may not have considered, such as the option to check your credit score. If you check your score on a regular basis and it suddenly lowers, you'll be able to pinpoint the issue immediately.
Most major credit card applications also allow you to freeze your account and replace your card if it is lost or stolen while you are in the midst of a crisis.
You may not be able to avoid a crisis, but you can manage how you prepare for one so that you and your assets escape unscathed.
Tiffany Wendeln Connors works as a writer and editor for The Penny Hoarder.
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