Poverty and recession have adversely affected so many people in almost all countries. No economy is exempt from poverty and recession, and both government and non-government organizations are doing what they can to alleviate the situation in their respective countries.
These large-scale phenomena affect even you. A lot of people have lost their employment on which they heavily depend for basic sustenance. The companies they work for have suffered financially because of a tight economy and had no choice but to lay-off a big portion of their workforce. Like the many others who have gone bankrupt, lost their jobs, and have taken pay-cuts just to keep their jobs to still support the family, everyone has to do what it takes to thrive and live well and comfortably in a tight economy. The following are things that you can do to accomplish this.
- Understand your cash flow. In order to properly manage your finances, you have to know the situation of your finances. Know how much you make – even after taxes – then determine how much you spend. Be specific and identify the exact items you spend your money on, down to the last cent. Be sure to paint an accurate picture of your finances.
- Budget and cut costs. Since times have changed, together with your disposable income, so should your expenses. After identifying what you spend for, identify areas where you can cut back. If you have received a pay-cut of 20%, then try and cut your expense by at least 20%. Focus cutting on unnecessary expenditures. Be practical and firm with your decision-making when you cut down on expenditures.
- Be transparent. If you and your family are accustomed to spending extravagantly on things, foods and places, you simply have to make changes. Communicate with your family about your situation and your plans, and ask them for each and everyone’s individual and collective help. If you are to survive a tight economy, you have to be willing to make sacrifices and work as a team.
- Enjoy simple things. You and your family can still enjoy life even without excess cash to dispose of. There are tons of things that you can do to have a fun and get some quality time with your family. Even better, these are either cheap, or free! No matter what the situation is, you have to prioritize family time together. This will ensure less tension within the family through fun, understanding and loving cooperation.
- Save. This is the most basic of advices yet it is the hardest to do. Tough times call for tougher remedies and you have to make it a point to survive through a bad economy. Make intelligent and practical savings plans and arrangements so that you can have a buffer zone and available funds for any unforeseen events. One of the wisest things you can do is to save what you can for the rainy days until the sun shines brighter once again.
It will not be easy to live through these trying times, but with the will and determination to live and make the most out of living, surviving a tight economy is possible.