The world is unsettled

Your finances don't have to be

One of the presenters at the Fincon Expo last month was Elaine Miranda, who runs a business called Plata con Plática, which translates to Money Talk. It’s a financial planning and education company based in Nicaragua, a nation that has seen its share of poverty and political upheaval. Miranda spoke on managing money in a crisis, and her advice is sound even for people living in what is one of the world’s richest and most stable nations.

Believe it or not, American readers. If you’re struggling, then think how much worse it is for people almost everywhere that isn’t Sweden.

A financial crisis may be caused by hurricane or governmental overthrow, or it may be because of a job loss or devastating diagnosis. Miranda says that the first step is to acknowledge that things are bad. Pretending that everything is fine won’t solve a problem and may take up valuable energy. Accepting the situation doesn’t mean being resigned to it, however. It means realizing that there is a problem so that you can look for ways to solve it.

The next step, she says, is to find ways to buy time by calling creditors, filing for unemployment, or other things you can do to alleviate the financial pressures of your situation.

All of this is easier if you have the basics in place: an emergency fund, a budget that you more or less stick to, insurance, and a diversified portfolio. One of Miranda’s points, given her audience, is that it’s easy to talk to clients about these basics in a time of crisis, and that people can make small improvements in their financial situation even when surrounded by chaos.

And so, if you are feeling uncertain about the state of the world or about your place right now, look at the money basics.

• Emergency fund

• Budget

• Insurance

• Diversification

Then, take one step toward improving one thing. It will make you feel a little more prepared to deal with whatever may happen.

After you do that, make a charitable donation. Share the love. It can be as simple as cleaning out your closet and giving old coats to a coat drive, buying one can of soup to put in a food pantry donation bin, or fixing a peanut butter sandwich and giving it to a homeless person. I find that even very simple acts of sharing make me feel better while also helping to repair the damage in the world around me.