Surviving the Economic Crisis sometimes seems impossible, but there are ways to come out on top. The current economic state looks like it's here to stay for a while at least, so many people think that surviving the economic crisis is a luxury of the very rich. After all, very few of us have or will be unaffected by it. We, or people we know, have been affected by job losses, price increases and uncertainty about the future that the economic crisis has provoked. So we need to be proactive and take steps to help ourselves get through this difficult period. Here are 9 tips for surviving the economic crisis.
1. Maximise Sources of Income
Our parents may have had a job for life, but such a thing doesn't exist any more. So don't rely on one source of income, especially if you are self-employed. Take in a lodger, polish up your skills, get a second job – do whatever you can to have as many income streams as possible. Surviving the economic crisis often depends on thinking outside the box.
2. Reduce Spending
Cutting back on spending is a must during an economic crisis. Look at where you can reduce your outgoings – there are likely to be several ways in which you can save a few dollars. Do that with several things, and even small savings add up.
3. Avoid Credit
Using credit cards to get you through a difficult time may be tempting, but will only lead to more problems as the interest builds up and gets you further into debt. Surviving the economic crisis really depends on ditching the plastic. Avoid buying unnecessary items on credit, even if you think you will be able to pay it off – circumstances may change.
4. Rainy Day Fund
There are going to be many more rainy days while the economic crisis endures. If you don't already have emergency savings tucked away, then start now. Save whatever amount you can, however small. Then if the car breaks down, you won't be wondering how you can pay for the repairs so you can get to work.
5. Shop Smart
Surviving the economic crisis requires you to pick up new habits. Learn to be a savvy shopper. While it doesn't make sense to go miles out of your way to save a few cents, work out how you can get the best value at the supermarket. For example, buy cheaper brands and stock up on special offers that you can store or freeze. Also look for the best deals on items that you need to buy, and avoid buying things that you don't need.
6. Backup Plan
It's wise to plan for the worst, such as you or your partner losing your job. You may not need a backup plan, but it's better to have one and not use it, than not have one and then panic because you don't know what to do.
Any time is a good time to examine your finances, and it's especially smart to do so when it comes to surviving the economic crisis. Look at your income and outgoings, work out where your money goes, and see where you can make savings. Draw up a budget and stick to it.
8. Foresee Changes
Not only should we anticipate possible negative events such as job loss, but also happy events such as pregnancy. If you want to start a family at some point, look into finances and your legal rights, and work out how you would manage if you fell pregnant.
9. Adapt to Circumstances
Adaptation is a vital part of surviving the economic crisis. If you're lucky enough to have a good income, it's tempting to live the corresponding lifestyle. However, with the economic crisis, many people are now finding that they have to take a job well below their qualifications. So if your income drops, adapt accordingly and don't try to keep up a previous lifestyle that you can't afford.
There's no doubt that we're all in for a tough few years, but surviving the economic crisis is not impossible. The economic crisis means that just about every aspect of our lives is affected; surviving the economic crisis also means that every aspect of our lives will be affected. However, the ways for surviving the economic crisis that I have suggested can help us get through this difficult period. Have you discovered any ingenious ways of dealing with the economic crisis?
Top Photo Credit: jasonryanberg