Surviving the financial crisis requires a plan, good-timing and an accurate knowledge of one’s finances. Although a financial-crisis can be a devastating situation, an individual can endure it.
In a financial-crisis, one needs to determine what his priorities are to help him create a plan. He needs to list all his bills & expenses, and then put them in order based-on-priority. He should put the items with lowest-priority at the top of his-list. Upon the crisis getting bad enough that he needs to commence considering cutting back on expenditure or even postponing settling of certain bills, then his priority list is where he begins. For instance, if he feels that having a cellular phone is a low priority in a financial crisis, he should put it at the top of his priority list. The cellular phone will be the first item to go when he begins cutting back on expenditure.
If one is an employee, he/she should carefully consider his/her work-security. When-the-looming financial-collapse happens, the least-tenured employees will-be-the ones to go 1st and if one is the least-experienced in his department, he should begin creating a plan B. He/she may begin thinking of a home-based-job that can help-augment his family’s needs or consider switching careers so he gets a higher-pay & better security in his work place.
Write it out
The initial shock of a financial crisis is what makes it disastrous. Rather than concentrating on the short-term implications of the crisis, endeavor to put it into a long term perspective by writing the problem down on a piece of paper prior to collecting data to utilize in solving the solution. For instance, a job loss can seem catastrophic. But when one writes down his bills, he should be sure to find ways to cut back on his expenditure prior to comparing his expenses to what he actually has available in savings along with the unemployment he’ll receive. He may find that he is able to sustain himself for months while looking for a new job.
Whenever one has debt, the respective lending company, bank or financial company is bound to control his financial-future. He therefore needs to plan-on important-ways to stop-accumulating extra-debt as plans-to-reduce his current debt. For instance, overpaying mortgages monthly might find him extra-couple-of months off his debt. What’s more, consolidating loans ensures efficiency in payment & greatly minimizes the risk-of-missing payments. Furthermore, an individual may use-automatic-debit from his bank account to avoid worrying about-missed-payments in future.
Simplify life choices
Learning how to lead a simple life deters one from accumulating extra debt and helps one save. For instance, in lieu of-eating-out or shopping, one can-cut-down on these-activities so as to save money. An individual can switch-to-more productive & free hobbies like gardening, reading, etc.
One can also indulge his family-in-eating simpler but nutritious meals e.g. choose home-grown-vegetables & fruits to substitute eating out.
Aforementioned tips can help one in Surviving The Financial Crisis. All it takes is a bit of creativity, motivation & determination to make it happen.