Be smart about money; turn crisis-proof

Surviving a financial crisis is not complicated if you are prepared

13:02 18 November 2014

Who can foresee a crisis? No one can. It could be on anything. Further, it could have an effect upon your financial situation. From bad health to unemployment to a crash in an international stock market, there are a number of factors that can bring about a financial crisis. However, there is no need to worry a lot. Stay focused, and you will be ready for every situation. 

 

Here is how you can be better prepared.

 

Reduce Expenses

 

Try to cut down unnecessary expenses. Why pay for an expensive cup of coffee when you can make a cup at home? Even £2 can make a difference. You can actually save anywhere between £60 and £70 a month and £720 and £840 a year. Similarly, consider other options such as carpooling with friends and try service like Netflix UK especially if you are a constant goer to movies. 

 

Start Saving

 

Your savings will come in handy when you are in a financial bind. Start now, and let your savings pot grow. You now have something to count on when your income dries up.

Compare Isas and do a comparison of all the options available in the market. Usually saving accounts, which are hard to access, serve you well. It is better to have two types of saving accounts, one for short-term goals and another for long-term objectives. 

 

Tip: Aim for stashing 10% of your income without fail. Fall back on this account to save you from the financial rut you will be in should your earnings decline. 

 

Pay off Your Debts before It is Late

 

If your debt is getting out of control, it is high time you thought about paying this off. Debts are one of the things that make challenging periods even difficult. Try to make sure that you pay off your minimum payment before it is due. There are several different techniques of paying financial debt off, choose the one that works for you.