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Hey Savvy Savages! We have a very important guest post today from Boban over at Finance Utopia. At some point in your life, chances are you will be forced to deal with a financial crisis. Whether it be a death in the family, market crash, or natural disaster knowing how to deal with the financial crisis correctly is important. Enjoy! – T$C
There are a lot of things to be panicking over in the news today – from debts to the roof, to high unemployment rates, to natural catastrophes – a financial crisis can happen in any number of ways.
The family is the most important thing when it comes to dealing with hard times especially financial. We’ve all been in some financial crisis once in our lives and we best know that with the good support we can push through it out and get out of it quickly. The most important thing is knowing and wanting to win this situation. I’ve made some guidelines that will help you get through in a financial crisis. You always need to be strong when these times come.
Having a money related arrangement setup will help you beat any of these worldwide monetary occasions, or events, for example, a layoff or sudden disease or damage. The thought is to put your monetary house in such a position, to the point that you’re ensured paying little attention to the budgetary chaos that may emerge.
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Always have a backup plan
First of all, make a list of your monthly expenses. Be sure to cover the tiniest expense all the way to the mortgage, travel costs or even groceries for your fridge. Next, begin to remove unimportant things like fun, second auto repairs etc. This is the number of things you require every month to survive financially. In the case of lost wage, how will you meet this number? Conceptualize thoughts on your accessible assets and consider different ways you could use resources or make a salary.
Reduce Your Expenses
Investigate your current month to month costs to see where you can reduce waste. If you eat out at cafeterias for lunch every day, start putting together a lunch to bring with you to work. Wipe out your magazine memberships, carpool with co-workers to minimize transportation expenses. With a little effort, you will slowly decrease this cost and have more cash to put into your investment funds or apply to paying off the debt.
Start tracking your monthly expenses using a website like Personal Capital. They make tracking your monthly cash flow and net worth super simple.
Related: 100+ Easy Ways to Save Money Today
Build a second income
I can think of no greater hedge against unemployment than developing a second income stream. Even if your second income is a smaller than your full-time pay, it might be enough to keep your home and keep food on the table in a financial crisis. Low maintenance gigs are a fine approach, however, I urge you to search for chances to develop freelance work. Cut yards in your neighborhood. Figure out how to build fences and decks on the weekends. Start a blog or pursue independently written work side hustles.
A great second income is getting paid for taking surveys. Reputable companies like Survey Junkie, Harris Polls, Inbox Dollars, American Consumer Opinion, Swagbucks, and Pinecone will all pay you cash for just sharing your opinion. Start filling out surveys today and build up your second income.
Worry less, smile more
Money can’t buy happiness, right? Actually, research is conflicting on this point. Money can buy a measure of happiness, says sociologist Glenn Firebaugh of Pennsylvania State University.
Just as you can’t control whether it’s going to rain tomorrow, you can’t control the economy or the job market. The financial situation within the world changes daily, and not something you can control. So instead of stressing over the things you can’t control, focus on what you can control. Your personal finances and goals are easily within your realm of control and they can answer to you if you know how to keep things in perspective. This strategy will enable you to build confidence while reducing stress.
Finding the best solutions for getting through tough financial times will require some determination on your part. Be brave, give your best to find optional funds aside, work hard and hopefully you will be prepared to deal with a financial crisis.
What financial crisis have you had to deal with in life?
How did you overcome it?
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