Surviving a Financial Disaster
Every night the new reports the bleak outlook on the state of our nation's economy, as well as the world's economy. When will we recover? As it stands now, thousands of people are unemployed, this in turn, results in the loss of their homes. In addition, personal investments such as retirement accounts are drastically dropping in value. The outlook of financial future is dim.
Surviving this financial crisis is not easy but if you have a PLAN of ACTION your chance of recovery is greater...an ounce of prevention!
Financial Survival Plan of Action:
DON'T PANIC - panic never pays!
Spend less than you earn
Invest your money wisely - make it work for you
Plan for the unexpected
DO NOT rely on credit
Decrease Debt
Be aggressive about lowering your debt - with little to no debt you can weather the storm
- Spend less than you earn!!!!
- Prepare for the unexpected
- Create a budget
- Create a monthly spreadsheet to track income vs. expenses
- Include monthly saving in your budget
- Be realistic
- Be disciplined to stay within your budget
- Simplify - What expenses you can lower or eliminate?
- Save for the "rainy days" - you never know when illness, job loss, etc. will strike
- Put aside a set amount for monthly savings
- Conserve Cash - keep cash on hand in the event of an emergency
- Create an EMERGENCY SAVING ACCOUNT - you should have a reserve of 3 to 6 months living expenses in the bank.
- Be thrifty - clip coupons
- Create a shopping list prior to going to the store - apply coupons
- Cut back on dining out
Live Within Your Means
- Be realistic
- Don't count on home equity loans for extra/emergency cash
- SPEND LESS than budgeted & SAVE MORE
Protect Yourself
Society deteriorates and crime levels increases when financial crisis strikes.
Plan to protect yourself and your family in the event that things get very bad.
Acquire Additional Job Skills
Enhance your marketability by learning additional skills – healthcare is always a good field to persue.
Stock Up
Pre-packaged or canned food has a long shelf life & doesn't require preparation .
Review/Reevaluate Insurance Coverage
Review all policies and determine where you can cut the cost.
CREATE a "What If Plan"
- Create an updated resume.
- Be aware of other employment opportunities.
- Consider part time employment in addition to your primary career - in the even that you lose your primary job you will still have minimal income.
Prepare
Step 1: Get a Kit
-
Get an
Emergency Supply Kit
, which includes items like non-perishable food, water, a battery-powered or hand-crank radio,
extra flashlights and batteries.
-
Make sure you have a
"to-go bag"
ready in case you need to evacuate.
Step 2: Make a Plan
Step 3: Be Informed
-
Listen to Local Officials -
Learn about the emergency plans that have been established in your area by your
state and local government
. In any emergency, always listen to the instructions given by local emergency management
officials.