At different points in our lives, we will face financial challenges. Some of these will be so severe as to reach crisis level. We might not know where the financial crisis will come from or how long it will last—but one will come, and we will have to deal with it. We can be ready!
Personal financial planning for a crisis is simply preparing to meet future uncertainties. The crisis could be caused by war; natural disasters like volcanic eruptions, bushfires and cyclones; famine; or disease, like COVID-19. Or, it could be more personal, like sickness, loss of employment, or family matters.
As human beings, we cannot see the future (see Ecclesiastes 8:7). Even listening to talking heads on TV or reading opinion pieces from various economists and journalists is unlikely to give us reliable insight. This should not stop us preparing to meet the uncertainties of the future for the sake of ourselves and our families.
Wise King Solomon stated, “A prudent person foresees danger and takes precaution while the simpleton goes blindly on and suffers the consequences” (Proverbs 22:3).
As Christians, we also receive special wisdom from God about how to deal with crises. We know a financial crisis could be just around the corner; because of this we should develop a financial plan