How is it better prepared in the event of a financial crisis?

How do you prepare for a financial crisis when you can’t anticipate it? Difficult to say. However, for several years it is announced that we will enter a financial crisis, but since we have not heard our effects on a personal level, each of us has been seen. Since we are in a context in which there is a lot of talk about a possible financial crisis triggered by the Coronavirus, it is good to start training for such a scenario.

How can we prepare ourselves for a following or triggered financial crisis?

Even if we cannot anticipate a financial crisis, it is good to educate us economically and aim to make a lifestyle. If you can understand what kind of spent you are and you will juggle in this aspect, you will be able to give your benefits or protection you need long -term.

Precisely because it is not known when a crisis can be activated, it is advisable to actively prepare, so you know how to organize your resources for the longest stability. Such an economic formation and an understanding of financial activity helps you at least to reconfigure your well -being when critical situations seriously change the economic context in a short time. And in any financial crisis, there are always some actions that prepare us.

Make a list of revenue and expenses

In order to set financial compromises or implement economic control, it is very important to know what your income is happening. Knowing your lifestyle, it will be clear to you at any time and you have to give up what you don’t, even when you don’t necessarily propose to limit your purchases. It is also a preparatory phase for crisis situations.

Reconfigure your expenses based on priorities

Now that you have discovered what your money is going, divide your list in priority (food, invoices, rent, monthly maintenance supplies) and secondary needs (tabbies, hobbies, holidays, etc.). You didn’t cut anything, because you will be able to transform your personal needs into goals. For example, if we discuss the holidays, the purchase of a car or other important things for you in the medium term, you will know what is the ideal time to move them to the list of priorities or you will be able to create a financial regime.

Minimize short -term, medium and long -term costs

Now that you have the list of monthly priorities that you are impossible to lose, try to reduce as much as the cost for each of them. Set your optimal consumer behavior and economically use the resources you need to live. Suitable your shopping list to what you need, try to create a food program and not to waste food, minimize invoices for electricity and gas as much as possible,

You can try to give up the monthly subscriptions that complete only your lifestyle, do not define it (netflix, games, applications, sa).

This behavior creates a habit that in the long term and makes you more selective in the purchase process.

Save. Make a budget and keep it

Now that you know exactly how much you have to cover the necessary expenses, the difference is your new economy you are doing. Try to fall monthly in the budget that came out of the lists above and the other part puts it aside. In this way you will always know, in the case of a personal financial crisis (e.g. the lack of a longer term job) or of a different nature, provided that you allow you to live as close economies. Or, with their help, you can make a financial plan for new purchases or secondary needs in the list of objectives.

Respect your payment terms

Failure to comply with the payment terms for debt makes you even more difficult to overcome a period of crisis. Whether we are discussing invoices, rent or banking rate, it is better that you try to be a little more drastic when you minimize the costs for other expenses and remain constantly with the payment of these debts.

Pay attention to the benefits received by potential suppliers

Now it’s time to remember or follow all offers. Whether we are discussing discounts or loyalty cards to the supermarket, new offers to the necessary current subscriptions (TV, network, etc.) it is good to enjoy it. Look at them as a heap of benefits, not only concerning the equivalent of each. Little wherever it can be significant for the total saved.

Invest in professional stability

Since all expenses, regardless of the list in which they are located, are incurred by the stability of your revenue, is ideal for being outside of any danger to work. Continuously develop your skills to become indispensable in current or future work. And if you feel you can do more, choose extra projects that can offer you an extra income and give yourself an alternative, if you think the work is no longer what you want.

It is very important for each of us to prepare for a financial crisis. Whether it’s constant behavior and becomes a lifestyle or it is only a periodic exercise we do, it is certain that it allows us to recover and an adaptation to critical situations in both personal and social life. Even if we cannot anticipate, this does not mean that we cannot prepare ourselves.