Friday, 13 May 2011

5 Important Tips For Coping With Financial Crisis

There is no denying that we are
going through a very serious
economic turmoil, the likes of
which we have never seen in our
lifetime. The world and our
society are experiencing
significant changes that will
certainly reshape many
industries and this will
undeniably trickle down and
affect us in our daily life. So I
think it would be logical and
smart to discuss how we can all
cope with this crisis. Here are
some tips that can help you
weather the financial storm:
1- Stay under control
Now is no time to panic.
Certainly, these are serious
conditions, but freaking out and
running around like a chicken
without its head will do
absolutely no good. When faced
with adversity, you must remain
in complete control. This is why
it is crucial to remain calm. Only
under such circumstances can
you make sound decisions and
rationalize what is happening
with logic. Keep in mind that this
crisis is affecting all of us. We are
all in the same boat, so there is
no need to let things get out of
hands. We do not have much
control over what happens in
these financial markets, but we
do have full control over
ourselves, so this is what we
should focus on controlling.
Great leadership is conveyed
through calm and peace during
difficult times, and what we need
right now from everyone around
us is good leadership.
2- Keep informed
It is extremely important to
remain in the loop to know what
is actually happening in these
troubled markets. If there was
ever one topic that people
definitely need to pay attention
to, it is this one. The more
knowledgeable you are about
this, the better decisions you can
make. I highly recommend that
you get your news and
information from various
sources, as well as discussing it
with your friends. We need to
share perspectives and opinions
so that we can carve out the best
possible plan for ourselves. Also,
try not to saturate yourself with
too much news from the media.
It can be very easy to get
discouraged when exposed to so
much negativity. While it is very
important to stay informed, you
do not want to overdo it to the
point where you think this is the
end of the world and can ’t sleep
at night anymore.
3- Reassess your financial
With the information that you
have gathered, you need to start
asking yourself some important
questions. Is my job or business
affected by this? For example,
the auto industry is in shambles.
Do you or your company have
links to this industry? What
about your investments? Do you
have alot invested in companies
that are on the brink of a
financial collapse? This is why
you need to stay informed, so
that you can perhaps rearrange
your investments into a more
appropriate solution. For
example, gold is currently a
skyrocketing investment. Can
you afford your mortgage even if
the interest rates go up? All
these pertinent questions will
raise your level of awareness and
have you start thinking about
serious & logical answers.
4- Have a back up plan
I am the type of person that
always has a plan B, C, or D. This
has helped me achieve a great
amount of success in my life. The
worst thing that can happen is to
be slapped with a surprise event
that forces us to change our
path, but not knowing which
path to now take. This is why
you absolutely need a back up
plan. What will you do if you lose
your job? You need an answer
to this in case it happens. What
happens if your mortgage
payments inflate significantly?
How do you react if the value of
your investment portfolio is
dwindling down at an alarming
rate? Having such a plan in place
will not only save yourself many
sleepless nights, but it can help
save you some valuable time,
energy, and probably money,
simply by having had a rapid, yet
smart answer to help you guide
you into a new direction.
5- Change your spending habits
When there comes a time of
recession or depression, you
need to become extremely
careful with money. Spending on
unnecessary items & keeping
expensive habits will only put
you in the hole deeper if you end
up losing your job or your
interest rates go up. You have to
be smart about how to go about
this. Being preemptive in case
things get worse can make a
huge difference in your life.
Instead of taking an extravagant
vacation, perhaps a more
economical one is the best way
to go at this time. Maybe go a
little easier with the Christmas
gifts this year. Even if the oil
prices are currently dropping,
perhaps you can keep your
driving habits that you changed
to save you money when the
prices were through the roof.
Anything that can help keep
more money in your pocket is a
good thing during these
challenging times. Now is not
the time to rack up more debts,
so living within your means is
key to getting yourself through
this crisis.
While it is a serious situation, it is
not necessary to let this crisis
take over your entire life. Keep a
positive attitude about this,
continue to enjoy your life, and
make plans for your future. We
will certainly get through this.
We will ride this wave and there
will be much easier days ahead.
Just be ready. Prepare yourself
just in case. It ’s like wearing a
seatbelt in your car. You do not
want nor expect to be in an
accident, but just in case you are,
at least you are protected. Have
this same attitude with your
finances. Put your financial
seatbelt on, because the ride may
indeed be quite rocky!

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