Despite a significant decline in market indices across the world, it is essential for every business and individual to not lose hope. There are some remarkable areas where they can display cuts that can help them protect their current income and proceed onwards besides personal savings and fixed deposits that can provide them some additional financial assistance. Though the global economy has come to a halt and many have been put on unpaid leave or asked to go home due to closure, there are still some savings that can be made.
Economies across the globe have been responding to this ongoing recession in various ways. Some governments have announced massive bailouts for the public and also especially for their big businesses. But being a concerned citizen you will want to know how to save more and spend less to get prepared for a gloomy economy. Below are some ways to manage your finances during the crisis.
1. Always Have An Adequate Emergency Fund
An adequate emergency fund is an important requirement especially for large families with children. Though it is not an overnight option to save a significant amount of money, it is definitely a step in the right direction. Talking to people all over the world; the general consensus is that the economy is leading the way for a trend of saving and preparing for the worst. It is highly recommended to open a high dividend paying investment account that will consider this as its primary purpose and help you save much more than a regular standard bank savings account.
When the going gets tough, the tough go cheap! This is the philosophy that many are following during a recession. It is the smart way ahead towards reducing unnecessary expenses and fulfilling your financial obligations. There are some basic and very obvious areas of your expenses that you can curb; such as cutting down on the cost of utility bills, usage of cars, expensive clothes, eating out and even donations.
It is almost a necessity to have insurance especially for those who have families and are looking for a long term financial solution. Never lapse on paying your premiums or else your family will not be as protected as they should be. There are many financial advisors who can guide you through the process to identify the right type of insurance cover and the various options available to you. Further ensure your family has optimal medical insurance coverage and have arrangements for their education.
4. Focus Hard On Maintaining Your Current Investments
The stock market is indeed a volatile place where you need to have nerves of steel and be able to keep your cool. It is during this time that you can see your portfolio being affected by a state of panic, but this is also the right time for taking advantage of these bargain shares and investing in them. Make sure you have made a full consultation with your financial advisor so that your money is not being placed in the wrong hands and because someone says so.
SIPs or systematic investment plans are promotions offered by many brokers and promoter banks and they are worth having a look into. The idea behind an SIP is to document a systematic deposit of a specific amount of money on a daily, weekly or monthly basis into a stocks or mutual funds SIPs withdraw your money based on the impact of market performance.
Though this might seem far fetched, it is an option you will have to consider if your financial situation has worsened. There are great deals available from small or even large banks. You can take loans that will be of any suitable duration and with very flexible conditions. Banks are more than willing to open new loans during such times as they are looking to generate some further opportunities to recover the losses and make some additional profit. One can always receive a no credit check loan; while you can also find other loans available that have a guarantee. Both these covering options are also loans that one can use to their advantage.
Though there are many ways to invest your money and manage your finances during the crisis, it is always better to take the advice of a financial advisor who is well versed in the economic situation globally. Many of the online financial advisors know the current trends and suggest the best options available to their clients.
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