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  “How to Increase CIBIL Score Fast " Factor Weightage Payment history 35% Credit utilization 30% Credit history length 15% Credit mix (secured + unsecured) 10% Credit inquiries 10% To increase score fast, we focus on the highest-impact factors. 1. Pay All EMIs & Credit Card Dues Before Due Date Late payments are the No.1 reason scores drop.  Best trick to increase score fast: Set auto-pay for EMIs & credit cards Pay credit card bill 5 days before due date Even paying minimum due on time protects score from damage  Never delay payments — even 1 delay stays in report for 2 years. Improvement Timeline: 30–60 days 2. Reduce Credit Card Utilization Below 30% High usage = score drop even if you pay on time. Example: If your credit limit = ₹1,00,000 Never use more than ₹30,000 per month ✔ Maintain < 10% if possible (fastest score boost) Improvement Timeline: 45–60 days 3. Clear Small Outstanding Du...
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How to build a financial crisis plan

 



Creating a detailed financial crisis plan is essential for protecting yourself and your family from sudden income loss, unexpected expenses, or economic downturns. A strong plan ensures you remain financially resilient and prepared for any storm.

Here’s a step-by-step detailed guide to building your financial crisis plan:

 1. 

Understand What a Financial Crisis Looks Like

Before planning, define what a “crisis” means for you. Examples:

  • Job loss or income reduction
  • Medical emergency
  • Natural disaster damage
  • Recession or market crash
  • Unexpected major expenses (e.g., legal trouble, car breakdown)

 Why this matters: Each type of crisis may affect your finances differently and may require unique planning. 

2. 

Assess Your Current Financial Health

Start with a financial check-up.

a. 

List all sources of income

  • Salary or business income
  • Rental income
  • Side gigs/freelance
  • Investments (dividends, interest)

b. 

Document your monthly expenses

  • Fixed: Rent/EMI, insurance, school fees
  • Variable: Groceries, transport, entertainment
  • Use expense trackers like YNAB, Mint, or Excel

c. 

Calculate your net worth

Net worth = Total Assets – Total Liabilities

Include:

  • Assets: Cash, savings, property, investments
  • Liabilities: Loans, credit card debt, EMIs

 3. 

Build an Emergency Fund

An emergency fund is the cornerstone of your crisis plan.

How much to save:

  • Minimum: 3 months of basic expenses
  • Ideal: 6–12 months for greater security

Where to keep it:

  • High liquidity: Savings account, liquid mutual fund, or fixed deposits with premature withdrawal
  • Avoid investing emergency funds in stocks or real estate

How to build it:

  • Automate savings (SIPs or scheduled transfers)
  • Use micro-saving apps like Scripbox, Jar, Niyo, or Fi

Why it matters: This fund helps you cover bills and essential needs without borrowing or panic.

4. 

Prepare a Crisis Budget (Bare-Bones Budget)

Create a simplified version of your budget focused only on survival.

Essential categories:

  • Rent/home loan
  • Utilities (electricity, water, mobile)
  • Basic groceries and healthcare
  • Transportation
  • EMI payments (or minimum dues)

Reduce or eliminate:

  • Eating out, streaming subscriptions, shopping
  • Travel, gym memberships, luxury purchases

Action step: Make two versions — your regular budget and your crisis mode budget.

5. 

Eliminate or Minimize High-Interest Debt

Debt becomes toxic during a crisis.

Strategies:

  • List all debts with interest rates
  • Prioritize credit cards and personal loans
  • Use avalanche method (high-interest first) or snowball method (smallest first)
  • Avoid taking on new debt unless absolutely necessary

 Tip: Try negotiating with banks or using a debt consolidation loan if overwhelmed.

 6. 

Review and Strengthen Insurance Coverage

Insurance protects your savings during emergencies.

Must-haves:

  • Health Insurance: For you and family (check coverage amount, network hospitals)
  • Term Life Insurance: If you have dependents
  • Disability insurance (if available): Protects income if you can’t work
  • Vehicle/home insurance: For accidents, damage, or theft

Tip: Review policies annually and keep digital & physical copies handy.

 7. 

Organize Critical Documents

Make sure key financial and legal documents are accessible in case of an emergency.

What to include:

  • Identity proofs (PAN, Aadhaar, passport)
  • Bank statements, investment details
  • Insurance policies
  • Property documents
  • Loan agreements
  • Emergency contact list (family, doctor, advisor)

Tip: Use secure cloud storage (Google Drive, Dropbox) + a physical folder.

8. 

Diversify and Plan for Alternate Income

Don’t rely on one income source, especially during uncertain times.

Ideas for diversification:

  • Freelancing, consulting, online tutoring
  • Monetizing hobbies (writing, art, music)
  • Renting out assets (car, extra room)
  • Creating digital content or courses
  • Building passive income (dividends, affiliate marketing, YouTube)

 Action step: Start small but consistently—build this before the crisis hits.

 9. 

Monitor, Review & Adjust Your Plan

Life changes—so should your financial plan.

Schedule a check-in every 6 months:

  • Update budget and net worth
  • Reassess expenses and income
  • Check emergency fund balance
  • Rebalance insurance and investment portfolio

 Tip: Involve your family or spouse. Everyone should understand the plan.

 10. 

Focus on Mental & Emotional Preparedness

A financial crisis is stressful. Be mentally ready to:

  • Cut back on lifestyle temporarily
  • Communicate with family about money
  • Seek help (counseling, advisor, community support)
  • Stay calm in volatile markets—don’t panic-sell investments
Source of image: Google 

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