The recent covid pandemic has taught all of us a good lesson. It taught us how to save money and spend it more strategically.
Let’s have a look at some of the ways to survive the next financial crisis.
1. Reduce your debts
Your debts are your biggest enemy and it would be better for you as soon as you get rid of them. Reducing your debts will reduce your unnecessary expense and you could use that money for something better. In a financial crisis, you will have to pay your debts even if your sources of income have been reduced. So make sure to pay for debts as soon as possible.
2. Learn to differentiate between your creditors
Learn to differentiate between your creditors because it is going to help a long way. Some creditors might be important for you while some must be just sucking away your money. Make sure to have a look at such things.
3. Differentiate between your assets
You need to know which asset is safe for you and which one is not going to benefit you in the future. Have a look at the assets that are not exempted. Things like these just get unnoticed and you end up spending a lot of money on them.
4. Maximize your liquidity
As much as it is important to keep on investing at important places, it is also very important to have a good amount of liquid savings with you. The situation can change anytime and as we all know, cash is the king. To survive in a situation like a financial crisis, this liquidity is only going to help you.
5. Learn skills so you don’t need to outsource
Learning some of the basic skills that you are paying others to do is going to save you a lot of money. Things like fixing a bulb or a tap in your home are some of the skills that you should be knowing instead of outsourcing. It is going to help you in your money-saving process.
6. Start living more frugally
Ditch the fancy way of living just to show it off to other people. You are living for yourself, not for others. Changing your lifestyle and shifting to a simpler way is something that will always benefit you. It will help you during a financial crisis and you will be helping the planet by living more sustainably without much wastage.
7. Have multiple income streams
Having multiple sources of income is a must. Do not always run after making money. Let your money do the job for you and see yourself getting rich with the use of your brain. It is very important to have multiple sources of income and it is going to ease your life.
8. Invest in crypto
According to a report, up to 2030, more than 200 million people will be using digital money instead of going the traditional way. People like Elon Musk and Jack Dorsey believe that crypto is far more valuable and is going to only flourish in the near future.
9. Don’t neglect routine maintenance
Neglecting your routine maintenance to avoid petty expenses will do no good for you. It is always better to solve the problem before it becomes something major. Things like dental checkups, routine body check-ups, etc., should never be avoided. It is only going to cost you extra money and nothing else.
10. Start growing your own produce
By adopting this habit, you are not only going to help yourself but also going to help the planet. Things like growing your own vegetables, recycling water, rainwater harvesting, upcycling things, solar panels, etc., are going to save you a lot of money.
11. Develop a habit of sharing
If you are doing well today, then good for you. Start helping others with anything you can do. It doesn’t only have to be in monetary terms. You can help people by doing anything such as cooking a meal for them, looking after their kids, watering their plants, etc. Just be open with the idea of helping people without expecting anything in return. Trust me, good deeds always payback. That person will be ready to help you in future whenever you want.