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Monday, 4 June 2018

How to safeguard your family from economic crisis and protect financial freedom?

Protection from economic crisis
Recession, financial crunch, layoffs, bankruptcy are the buzzwords rattling our life frequently. As it is unavoidable in today’s World, are we prepared to survive these effects? What precautions we took in our daily life to face these crises? Are we simply blaming our leaders and sit without taking any actions in our lifestyle? What differential thought we brought to survive in these turbulent times? Remember, this is a cyclic effect which happens once in every 10 – 25 years around the World. It is our responsibility to take actions to ensure early financial freedom in life.

I believe, people those who have the habit of saving at least 10% of their paychecks can easily get rid of these crisis. The only challenge for them is how they are going to stick their jobs to meet the daily expenses. These are the people who have no mortgage / car / personal loans, liability in credit cards etc. Just they need to live on with their sliced out income due to the economic impact without much impact on their early financial freedom plan. But for others, this is really a difficult time. I hope the below tips helps to pass through the crisis times.

Stick on to your current job: This depends on how you are making yourself more valuable in your office. Share more workloads and create an impression that you can be employable in one or other ways. Simply, you need to market yourself in such a way that you are the last one to wipe out from your office during extreme difficult times.

Look for extra income: Even though you have a job, look for a part-time job. This will help you to pay back your debt in fast track and it will help you as a prime source of income if you lose your primary full time job. Learn new skills especially any technical / language skills. Remember, this is the one makes you always employable.

Discuss with spouse: Speak to your partner and make her / him to find a suitable job if they currently don’t. This will ease your burden at difficult times. As a thumb rule, both of you won’t lose the jobs at the same time unless otherwise you are both employed in the same office and it gone for bankruptcy. Both should work, but at the same time learn to live with one’s income.

Spend less, save more: This is the key word to have better and consistent life style all the times. Plan your finance and find ways to cut down the cost. Learn to invest and reap the benefits at right time. The early planning helps to achieve financial freedom in your life before retirement.

Shop in discount stores: Find out discount stores in your area and try to buy everything at discounted price. You can get the items at cheaper rate if you buy bulk in these stores. Start using prize coupons wherever possible. Don’t shy away going to crowded malls to buy the items at cheaper price.

Track down your spending: This is the simple way to cut down your unnecessary bills. Avoid using credit cards, new loans etc. Remember, if you buy things you don’t need, you will soon sell things you need.

Sell if you don't need: Clean-up your home and list out the items you never used in the last one year. Bring them into your living room and take the stocks. You will get amazed, how much things you bought without any use. Sell them immediately and pay-off your debts. Yes, if you haven’t used for the last one year then you never going to use it in future.

Develop a reading habit: Cultivate the habits of reading / listening news everyday. This will help you to know what’s happening around the World and you can take timely action. Get involved in group gatherings in your area and start building good networks to discuss financial planning. Learn to use internet for networking. Who knows, the help you need might come from anyone.

Most importantly, don’t get panic and get into stress. Be confident, plan ahead and execute well, I’m sure you will survive and surpass any kind of economic crisis in life.

8 comments:

  1. Hello, these are all wonderful tips. Tracking spending and sticking to a budget, is one thing we do. Enjoy your Monday and new week ahead.

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  2. And be aware that sometimes things will happen which are outside your control.
    Try not to stress about it.

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  3. In the Netherlands we say "an apple for the thirst" ...
    Very good advice!

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  4. Thanks for sharing this information.

    All the best Jan

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  5. Great advice... We (as retirees on a limited budget) are very careful with our money... We still SAVE each month.. We do use credit cards --but pay them OFF every single month... There's nothing worse than paying all of that interest... Our home is paid for and so is our car... We seldom shop except for what we need. We have a budget and we follow it carefully.

    Hugs,
    Betsy

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