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Navigating an economic crisis can be a daunting challenge, but there are essential strategies to help individuals and businesses weather the storm.
Economic Crisis can be seen as a period of economic or financial slowdown characterised by declining productivity and devaluing of financial institutions.
In face of present economic realities, one would need more than “common sense” to survive and navigate through.
The experience gotten from some past economic crisis could be a life teacher and lesson to become better, stronger and brighter.
As such, as the economy of our dear nation and indeed, the world gets tougher, we must not let the hope for a better tomorrow deprive us of learning from the economic crisis we are faced with.
Empty pockets can teach you a million things in life but full pockets can spoil you in a million ways
When you are faced with economic, career, relationship and other forms of crisis, you have three(3) choices. You can either:
- Let it define you
- Let it destroy you
- Let it strengthen you
The economic crisis is something we definitely do not pray for. The mere thought of being hit with a major negative event that could affect our finances can be very disturbing.
However, the prospect of something expensive and beyond your control happening becomes less threatening if you’re properly prepared.
To survive the current economic crisis, these tested, trusted, reliable and highly recommended steps will be very helpful.
8 HIGHLY RECOMMENDED WAYS TO SURVIVE ECONOMIC CRISIS
An additional source of income
It is simply wisdom to create an additional source of income during an economic crisis. This is because the sector you currently operate may be worst hit…
And even if it’s not, an additional source of income will offer additional financial resources to fund expenses during this period.
More so, it can be quite dangerous when one has a streamlined source of income because anything can happen at any time.
The money you earn from these activities may seem insignificant compared to what you earn at your primary job, but even small amounts can add up to something meaningful over time.
So always try to have other means or sources of income
Avoid unnecessary financial commitment
You have to learn to distinguish what is necessary and what is not especially during this period.
You come to realize that a lot of financial commitments are pretty much not necessary. Don’t get involved in unnecessary financial commitment at this time.
Avoid activities and projects that may have a negative impact on your finances. Minimize social and entertainment costs.
Make a Budget
If you don’t know exactly how much money you have coming in and going out each month, you won’t know how much money you need for your emergency fund.
And if you aren’t keeping a budget, you also have no idea whether you’re currently living below your means or overextending yourself.
A budget is not a parent—it can’t and won’t force you to change your behaviour—but it is a useful tool that can help you decide if you’re happy with where your money is going and where you stand financially.
Do a budget cut
After you’ve gone over your budget, next thing to do is a budget cut. If your budget contains items that are “luxurious”, try to cut down such items.
Instead of making a budget for idle and unnecessary wants, divert such funds for investment. You can do without certain luxuries until things get better.
If you buy things you don’t need, soon you would have to sell the things you need. Learn to cut your coat according to your size.
Save for investment
You may not be able to save as much as you think is enough but ensure you save something for future investment.
Do not save what is left after spending but rather spend what is left after saving.
Learn to negotiate
Always look for ways to get discounts and concessions when you negotiate for any product or services.
Cash discounts can help you secure extra cash for other expenses this period.
This might seem trivial but it is actually very important and goes a long way.
Stock the things you need
When prices of items increase in the market, bulk purchase for storage will save you the extra cash you may spend buying in a piece. Then again, you could learn to stock during certain periods like before festive periods.
Right now can be a good example as Christmas is fast approaching. This is often beneficial because things tend to become more expensive during these periods.
Invest in Affordable Assets
During an economic crisis, some persons may be in dire need of cash, hence, may want to sell certain assets at “Give-away” prices, just to meet urgent concerns.
Take advantage of such investment opportunities but be sure to properly engage necessary legal procedures to protect yourself from scam.
Every economic crisis serves as a period of “SIFT”; to take some persons up and brings others down. Whether you go up or down is yours to choose.