It’s been said that money makes the world go ‘round. But when a financial crisis strikes, your life doesn’t have to stop in its tracks. You just need to be responsible with your finances in order to survive in the event of an economic depression.
In a financial crisis, the key to survival is to save. Start a savings and investment account and put money into it regularly. When you get your paycheck, set aside the amount needed for your daily expenses and deposit the rest to your account. If you get a bonus, rather than blowing it all off, save at least half of it for your account. Even keeping a piggy bank at home can be useful. Collect the change that you have each day and drop them into the piggy bank, and then you can take all the change that you’ve collected in a month and deposit them to your savings. As they say, every little bit helps.
Unemployment is one of the major problems that you might encounter during times of economic turmoil. In such an event, it is good to have an emergency fund saved up to live on should you happen to lose your job. Ideally, you should have 3 months worth of your income set aside. If you cut down on your expenditures, you should be able to survive on this much money for about 4 to 6 months until you can get back on your feet. However, it is advisable that you don’t put this fund into a single investment vehicle. As the saying goes, don’t put all your eggs in one basket. Placing money in several types of investment vehicles exposes you to various ways of investing, allowing you to understand which ones yield low and high interest rates. It is also advisable to save or invest in different financial institutions as there are institutions that shut down during a financial crisis.
No comments:
Post a Comment