The recent slump in the world economy has taken its toll on almost all of the citizens of the world. Soaring prices of commodities and unemployment has caused people to declare bankruptcy and forced them to live on unemployment benefits. As the world gears itself to recover from the latest economic blow, a financial depression is likely to loom its ugly head once again. There is not much individuals can do to stop an oncoming financial depression. Instead, being prepared for an coming onslaught is the best thing that anyone can do at these times. If you are one of millions who are affected by this global crisis, it is very important to know how to survive this situation. Here are some tips to help you. Read on.
- Anticipate. Look for another job if the schedule of your current one permits you to do so. The extra income that you earn on your second, or third job, can supplement your main income and you can be more financially stable when the depression hits. Expect that the depression will hit you hard. This way you can prepare yourself, your family and most importantly your finances.
- Save up. Every dollar must be saved and not splurged on unnecessary things. Open a new account for the sole purpose of using the funds for emergency expenses once the depression hits. You can use the account to withdraw money to pay for things whose prices have gone up.
- Do not invest in real estate. This is not the time to invest your hard-earned money in real estate. Real estate and other forms of properties and investments are also affected by financial depression. If you buy a property now, chances are its value will go down during the depression, and it will be harder to jack up its value.
- Do not bury yourself in debts. Pay in cash as much as possible. Do not rack up bills in your credit cards as you have to pay them off every month. What if the financial depression hits and you are forced out of your job? How will you pay for your debts? The interest and fines add up to your balance and you have to pay more than you owe.
- Cut back on spending. If you go shopping for clothes every month, cut it down to once every two to three months to lessen your expenses. Shop only for those that are essential; like food, school supplies, etc. If you and your family eat out very often, this is the time to cook for your family and have fun just like when you are dining out.
As the financial depression hits everyone, you are prepared ahead of time and you can say that you are a survivor when all these pass. Share your knowledge on how to survive this situation with your family and friends so that they too will not feel the full effect of the depression. Even if there is no forthcoming global or local financial woe, practice the tips above to be more financially stable.