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 situation
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!