How to Survive a Financial Crisis

The only way to survive this global financial crisis is to be prepared. We must plan in order to survive or at least lessen the casualties.

The worst is yet to come. The only way to survive this global financial crisis is to be prepared. I have always believed that preparedness is the key to winning any battle. We must plan in order to survive or at least lessen the casualties. The extent of this crisis is still unknown and its boundaries are endless. The best way to weather this financial predicament is to follow these tips:

Be positive. Pessimists have no room in this kind of situation. Being positive-minded in difficult situation motivates an individual to find solutions and eventually solve the problem. When the going gets tough, take a deep breath and smile. But remember; do not smile too much as to deny the existence of a problem. Smile, but always put some action power.

Know where you are. Before you design an action plan, try to asses your current situation. If your finances is in red, figure our how much is your total liabilities and work from that amount. Try to develop a personal income statement of your life. You should know your income and how much expenses are deducted from it. If your income is more than your expenses, you will end up with extra savings. The rule is, do not spend beyond your means.

Eliminate unnecessary expenses. With or without crisis, every dollar must be spent wisely. Stop buying products that will end up in your trash bin or stored in your closet. Buy items that you need and avoid buying things that you want but you don’t need.

Find other source of income. In times of crisis, prices of basic commodities are usually high. Leaving you with fewer dollars to spend. In order to boost your purchasing power, you must look for other source of income either by finding a second job or establishing a part-time business.

Stay away from lousy spenders. Avoid hanging-out with people who are not conscious on their budget. Remember, you can catch a cold by being close to a person with the virus. Instead, interact more with smart spenders.

There is a saying that this world will not give us challenges that we cannot handle. I believe that with preparedness and proper attitude, we can weather this crisis.

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