How to Survive Financial Crisis

A number of people have suffered a financial crisis during their lives. This can come in various forms such as facing problems paying back college debt after graduation, getting fired from a job, struggling with big medical bills or some other untoward experience in their life. Nevertheless, it is vital to know and believe that things will eventually get better if you work really hard to sort out your money issues. In times like these, you can always seek help from family members and close friends. Therefore, it is always better to save every now and then so that you can survive a financial crisis in the future.

Instructions

  • 1

    Understand your finances

    The first thing to do is check how much money you have in your checking or savings accounts and retirement plans. This will give you a good idea of your current financial position. Get an estimation of the worth of your home, cars and other properties. After that, check your total debts from credit cards, student loans and mortgages. Then call all of your creditors. Inform them the current situation and ask them for lower monthly payments for some time. Make sure you do not accept a “no” for an answer and try to get in contact with a supervisor or manager. Moreover, token payment amounts can work in your favour as well.

  • 2

    Revise your purchasing and shopping routine

    Devise a new buying and shopping schedule as soon as possible. Annul extra memberships to gyms, DVD rental clubs and other monthly recurring costs. Be sure that you do not end up paying more on cancelling a particular membership. Convince yourself to stop eating from a restaurant until things get better. This will allow you to save more than half on your food budget. Change your grocery shopping habits as well. Go to discount supermarkets instead of upscale markets. It is an effective strategy to go to off brands in order to deal with your financial crisis. Do not go shopping just for the sake of it or unless it is very important.

  • 3

    Cut down transportation costs

    Car pooling is a good alternative or you can use the bus service in order to save extra money. If you are a student share a room and if you have space in your house then look for a renter. Also, try to search odd jobs such as waiting tables, bar tending or babysitting.

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