The economic crisis can happen anytime. Surely the economic conditions that are in crisis will make many people worried, especially for those who run the business.
This will then make people have to rack my brain about money management so as not to lose when the economic crisis is approaching.
Well, here are some tips that are summarized and can be used to be able to manage finances when the economy is in crisis:
1. Create a Priority Requirement List
The first thing you need to do when the economy is in crisis is to make a list of priority needs.
Determine in advance where the needs are important and main. Do not spend your money on things that are not important.
Under these conditions of crisis, the only proper way is to make savings. What is meant by savings, you must be more careful in spending money for daily needs.
Leave unnecessary desires. Fulfill the needs you put on the priority list.
2. Pay off Debt Immediately Before the Crisis gets worse
Due to the economic conditions that are in crisis, it would be better if you immediately pay off all debts. Especially if the debt is a credit card debt.
If you do not immediately pay off, of course, will make more and more interest. Credit card interest will be greater if not immediately do not pay it off.
3. Allocate Money in the Form of Investment
Another way you can do is to allocate your savings to a form of crisis-resilient investment. Ideally, it would be better if you use the principle of investing without going into one basket. Because it will be very risky.
If you are not good at diversifying funds into some form of investment, of course, will make the investment risk greater.
4. Limit Expenses
Economic conditions that are crisis, it is better to reduce expenditure each month. No need to cut completely, because it is a difficult thing to do.
You just have to reduce your daily expenses. For example, you are subscribed to cable TV. If you feel that this is not necessary, why not try to dismiss your cable TV subscription.
Better to enjoy free TV channels compared to cable TV which is not necessarily too important. You can allocate these costs for savings or other more useful things.
5. Have Much Money in Cash
Although economic conditions are deteriorating, there are many good opportunities that you can take advantage of if you see it. One of them is by increasing the cash.
This is because when conditions are in crisis, some valuable assets are usually sold at a cheaper price because the condition of people who really need money.
That way, it makes a lot of people sell their assets at a sloping price. This opportunity you can use to have productive assets at a low price.
6. Choose the Right Financial Services
When deciding to use the services of a financial institution, you must be careful to anticipate any losses that may occur. The first thing that needs to be ensured is that the financial services company used is really in good health.
What is healthy here is the institution in a state of profit and not experiencing a loss. To know clearly, you can ask information to the Financial Services Authority regarding the financial institutions used.
Apply a Lifestyle Save
When the economy is in crisis, the best way to do is to adopt a frugal lifestyle. Replace your consumptive lifestyle everyday. Do the savings and pruning so that later no loss in the future.