The current state of the economy has been bad for many people. People lost their jobs as companies are forced to downsize, even take dramatic steps to stay operational.
If this financial crisis we are currently experiencing is beginning to affect you, what can you do to protect yourself? Here are some tips to consider:
Start a personal savings account.
By regularly
contributing to different accounts at different banks, you can start saving money in case of financial hardship. Take a percentage from your earnings and deposit them regularly to your personal savings accounts.
Risky investments should be avoided.
If you want to do build up your finances, investing in stocks or business is a good way to go. You must be careful because one wrong decision can lead to bankruptcy. For those that are unprepared or have made poor decisions, they can be left with nothing. Always look at the positive and negative aspects and do your research before signing any contract.
Always pay your bills on time.
Avoid late penalty fees by always paying on time. Automatic payments are a great option for people that tend to forget when payments are due.
Make sure that your debts are extremely low.
If you have credit cards, try not to maximize your credit limit. By paying off your monthly balance, you can avoid interest rate fees that increase each and every month.
Always watch out for income opportunities.
You might want to consider taking on a part-time job, or starting a home business, to earn extra cash. Many people have items in their home that they simply do not use. Advertise them on auction sites to sell them or have a garage sale to earn some extra money.
Stick with your monthly budget.
Depending upon your current financial situation, you should do your best to budget your money. Avoid unnecessary expenses and always keep track of your monthly expenses, all the while adhering to a financial plan of action. Things like entertainment costs, transportation, and the cost of food are things you need to consider. Do you pay for Internet, cable, electricity and other utility bills? Do you have personal expenses? Take all of that into consideration along with debt repayment and savings plan. Create a budget based on them.
You should have an emergency fund.
Open up a savings account that is separate from your regular savings for emergency situations that may arise later on.
Create a retirement fund.
Always take advantage of funding options like 401(k) plans being offered by your employer to prepare for your future.
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This was a very interesting post. I’m one of those people who believes that since Peter Schiff have been correct about the sub-prime mortgage failure and the last couple of economic meltdowns his prediction that were are in for a bigger collapse is likely to happen I am researching everything I can find on surviving the coming economic crisis. You have some good points, thanks!
Everything here is super sound advice, but especially the suggestion to have an emergency fund. I didn’t have and of course needed to deal with an emergency. Preparing for financial crisis aside, I now know that whether working with a savings plan, investment plan or trying to reestablish credit, one’s first priority should be to establish an emergency fund. Without having cash on hand, an emergency can knock you to your knees financially. Great advice like this make yours a fantastic website.
I am finally getting decent hours at work, which was not the case from 2008/9 on. I have to hand it to my employer that cutting hours to keep everyone working was noble, but it just made 100% of workers have a tough time rather than having maybe 10 to 15% jobless. I had to get a part time job to make ends meet, which I intend to keep. It was my wakeup call. So now I am learning all I can about saving and preparing for the next big financial disaster that is supposed to hit before Obama leaves office. I hope the prediction is wrong, but knowing what I will have to live through again I will be as prepared as I can be this time just, in case.
I found this entire website an interesting source of information, and yes I read everything. I especially found this post interesting because what you lay out as a plan to follow for financial crisis management is actually what people should be following. If everyone had of taken the cautions you raise to heart, the economy would be a lot better off right now. The incompetent and crooked bankers and immoral money managers in our financial sector would still have destroyed the economy, but recovery would have already be well underway if consumers, as a whole, had not been as reckless with their personal savings as banks, insurance companies and brokerages were with other peoples’ money.
Hi Stephen,
Saving is really a good thing. It’s good to set aside cash for savings, although a lot of people find it hard to do but it is recommended to save for rainy days.
Good Luck!
Shelly
Hi Keith,
Thanks for considering this post as one of your resources on your research.
Thanks,
Shelly
Hi Brook,
I’m glad you like our site. It’s is really good to have a savings or emergency fund, especially these days that we can’t tell what will happen tomorrow.
Thanks,
Shelly
Hi John,
I’m glad you liked our site. It’s really good to be prepared to financial crisis at anytime. Just in case things might not go well by tomorrow, it is better to be armed with ideas on how to face it.
Thanks,
Shelly