How to take care of financial crisis

Posted: October 30, 2013 in Finance, financial planning
Tags: , ,

 

Life is very uncertain. At this point in time you may be flourishing, but there can always be an uncertain situation, where you might loose on all your financial support. When your time is bad, you are vulnerable to all the crisis in the world which might bust your present and future. This is the time you know who all espouses you. But this is a very difficult phase of life.

The financial Catastrophe might bring down your self esteem and confidence. And it makes a person feel that he/she has reached a dead end and there is no way out. However, you can always go back in time and figure out, what mistake have you done which led you to this situation. At the same time, what are the future measures to be taken to avoid any further situation like this?

  1. Keep a backup: This is important .Only because there was no backup, you are in this situation. So henceforth, make a point to keep a proper savings and backup for any such crisis. Try to figure out how you can generate more income and how to save the income. There are people who can help you out on this. Take help from financial advisers, and family members.
  2. No more credit cards: Try to avoid using credit cards. Leading a life on credits will not help you on saving, in fact, you will end up spending more, as you are unaware of the credit limits and half of your life will go in vain paying these credit card bills. So, don’t make your life so complicated, lead a simple life.
  3. Curb on your expenses: When you know you have just come out of a major crisis, try to curb on your unnecessary expenses. Try to save more and send less. This is the Mantra for a safe and secured future.
  4.  Don’t put all your eggs in one basket: Which means don’t put all your hard earned money in one bank. Instead distribute your income as saving in different places, like bank, in the form of Gold, some government saving schemes. This way, at the time of crisis, you will not be on the roads, because you at least have backups in different forms.
  5. Try to borrow less and earn more: It’s normal that at your hard times, you try to borrow money from your near and dear once. But, as far as possible try to avoid this, because, it’s like taking a loan which you have to keep paying back. You have not yet come out from the abyss and you will have another pot hole waiting for you. Instead, try to earn more, if possible, do a part time job, and work harder and harder. Your hard work will definitely be fruitful. So be positive.
  6. Change the job if that helps: As mentioned above if you think, you might get a better salary elsewhere; try doing that, because you are in dire need of money.
  7. Evaluate the value of your belongings: I would not suggest you to sell off all your belongings you have. But keeping a track of the value of the same is good for you. And only when you have run out of options, you can take this step.

SO, when a financial crisis occurs, that is not the end of the life and you should not lose hope and faith in God. As they say, May be God has a different plan for you. SO always be positive and come out of this situation even stronger and with greater will power. And you will pass this exam of life with flying colors.

Cheers

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