Finance can prove tricky, especially in times of uncertain economic stability. For many reasons, anyone can fall victim to a financial crisis they may have not anticipated, and surely havent prepared for. While we can never predict the future, here are a few ways to help prevent you from falling victim to a personal financial crisis.

1) Invest in Liquid Savings

When you find yourself in a financial pinch, theres nothing more comforting that having readily available cash at your disposal that makes purchases of needed good and unexpected costs something that wont drown you in worry. By investing a sum of your monthly income into a checking or savings account, or a certificate of deposit, you can have a ready source of money when needed while earning some interest in the process.

2) Budget Accordingly

Knowing how much you and your family spend each month on regular living costs can help you manage you routine expenses relatively easy. By managing your income against the cost of living, saving money becomes a tangible concept you can practice in anticipation of a true emergency that may require you to cover costs. Once this practice becomes more natural to your routine, adding your savings to your monthly expenses can allow you to save more efficiently.

3) Reduce as Applicable

If youre not struggling to meet your financial obligations each month, reducing your monthly bills may not arise as something you need to consider. It may be something that could ease a financial burden in the future however. Aside from the direct cost of living such as mortgages and utility bills, investigate other areas of expense where you make regular payments. For example, many banks charge hidden fees on customer accounts for standard services. Though some of these fees are small in amount, they can add up quickly with other unneeded expenses that can detract from your efforts to save and allocate your funds appropriately. Make sure youre not duped into paying for things unnecessarily.

4) Manage Your Bills

By mismanaging your bills, you wind up with extra expenses in the form of late fees or charges for reconnection and maintenance. You wouldve otherwise avoided these additional costs had you been more attentive of your bills each month. Credit card issuers and utility companies make a small fortune off customers who fail to pay their bills promptly, forcing many to suffer overdraft fees from their banks in an attempt to catch up. By carving out a day or two per month to handle bills and their payments before they are due, you can avoid unwanted expenses and stick to your budget each month.

5) Become Aware of Your Assets

While reducing your costs and increasing your savings can help to make sure you stay as close to solvent as possible, you should continue to curb costs in any way you can. This could be in the form of taking advantage of sharecropping in your area to cut food costs per month, utilizing gift cards on entertainment purchases rather than pay out of pocket, and taking advantage of reward programs offered by your bank or credit card provider that often come in the form of travel stipends. The goal here should be to never spend cash on things you dont need to.

6) Eliminate Debt

For many, the idea of living debt-free seems an unattainable dream. And while there are some debts that may require years to pay off, others are simpler. Credit card debt, which is one of the most common kinds, can be paid off through monthly installments that you can factor into your monthly budget. Faber Inc reminds us that by eliminating this kind of debt, which collectors often hound people over, you can refocus, in time, to building a robust savings.

7) Increase Your Income

We can all use more money. Whether this may come in the form of selling unneeded items in your home, taking on freelance work, or renting space on your property, adding income not only helps you better manage present monetary commitments, but can provide cushioning for future expenses.

While its impossible to prepare for all possibilities, taking these recommendations to heart can better prepare you to deal with emergencies without them leading to financial ruin.