4 Tips To Take Care Of Your Personal Finances In Times Of Crisis
We know, it is a scary time to be a responsible adult with debts, responsibilities, and of course, ambitions.
The finances of the entire world are reeling and we are all in crisis, but don’t panic. Stop stressing your common sense.
Even now it is possible to protect your money from the economic crisis.
Let’s get serious, but don’t break your head: we will leave you some tips to keep your finances healthy.
Four Tips To Take Care Of Your Personal Finances In Times Of Crisis
Spend Less Than You Earn
Yes, I know that is easy to suggest, but much more difficult to make happen. But don’t worry, three words: Expense tracking. It can be in an application, an Excel document or even in a notebook.
- Write your expenses daily
- Save your receipts to help you
- Be aware of how much cash you leave home with and how much you bring when you return.
This with the aim of generating a psychological effect to make you spend less.
At first, it can be normal for you to feel limited and frustrated; But as time goes by, you will get used to spending less and you will have a savings mattress that can help you in emergencies.
Do Not Generate More Debt
In times of lean cows you have to be more strict than normal, and generating debt that is not absolutely necessary, is a terrible step.
This is not the time to buy anything for payments, or to make that big purchase you have hoped for, even if prices have apparently not moved.
Many people rush to buy imported items during crises in the face of the threat of inflation, and consequently run into debt that then suffocates them. Be smart about your spending.
One way to organize your expenses is to have several envelopes labeled with a name and a fixed amount of money. For instance:
Drinking water $ 300
Light $ 1,200
Rent $ 5,500
Internet $ 700
This helps to have your expenses controlled and monitor that your money does not go to unnecessary things, and generates the need to acquire debt.
Have a Savings “Cushion”
We mentioned it to you at the beginning, in times of crisis it is essential that you cover yourself with a savings mattress just in case.
In fact, it is not only during times of crisis! Saving is a healthy habit for anyone no matter how flattering or solid the economic outlook, and it shouldn’t be limited to “I keep what is left over”, but should be done with discipline.
This does not change even in times of crisis, save and amass capital! And when did you already make a lot of money? There we go to the next tip.
Invert Part Of The “Mattress”
We know! Thinking about investing in times of crisis can be scary, and if you’ve been paying attention throughout the insurance article, you might ask yourself, Wasn’t it a rule not to incur debt? But the fact is that an investment is very different from a debt:
- An investment is a smart financial move that has the potential to multiply your purchasing power.
- A debt is an expense, a liability that drains money and does not have the potential to multiply your purchasing power.
Putting your money to work by investing a safe amount in strong assets can make the difference between just surviving the crisis and emerging victorious from it.
Remember that you are the one who knows what works or not within your system, but it never hurts to evaluate our financial habits to improve, especially in difficult times.
We can summarize it as: try not to get into debt, and try to generate more money by investing part of your savings.
If you still have questions you can contact us, send us a message by using our contact form. We will know how to advise you so that you can protect your money.