How to survive the crisis: tips + experience
An economic or financial crisis is not easy both for the population and for each person individually. The events taking place in the world make us think about the possible onset of a crisis in the near future. But how to survive the crisis?
Not everyone knows that the standard economic cycle lasts an average of 10-12 years. This means that the upcoming financial difficulties that global financiers predict may not correlate with the current price increase, changes in the exchange rate, prolonged quarantine, lack of stability and confidence in the future. Given the fact that the last economic crisis dates back to 2008, it must be said that the financial difficulties that are occurring now and then are expected.
Experts advise not to panic, not to worry ahead of time. The main thing now is to properly prepare for the predicted crisis, learn how to behave accordingly, analyze current financial behavior and make adjustments if necessary. Under the "distribution" of the deterioration of the global economy, everyone will fall – both state-owned enterprises and private firms with a large number of employees, production cycle, product sales, and ordinary families with mortgages, children, weekly sections and pet food. Therefore, it makes sense to divide advice into several categories – general ones, which are recommended for every person, regardless of his position and status in society, for owners of their own business, for the family.
However, before following any advice, it is necessary to analyze exactly how the crisis can affect you. Here you should consider only your situation in the current conditions, because it works individually.
Analysis of own pre-crisis situation
So, having calmed down and distracted from the surrounding frightening news, you need to understand that the financial crisis is an integral part of the global economy. Their offensive is a natural process, both locally and globally. Yes, the ongoing economic storm is destroying everything in its path. However, people who are able to see in this not only dangers, but also opportunities, are reborn with renewed vigor and often become leaders in their industry, overtaking failed competitors.
An analysis of your own pre-crisis situation should include:
The answer to the question “How will the crisis affect me personally?"
You need to turn off all emotions, panic and write on paper point by point what has already happened, what can happen, how what is happening will affect your personal and work life. Do not be afraid to write in the last paragraph the worst consequences for you, but only real ones.
The return of consciousness and thoughts of a person to the "here and now"
It is here and now that a person exists, as well as his business, family, knowledge, experience, and the opportunity to act. If you waste your energy on emotions and panic, these resources will not be used correctly. It is necessary to accept the situation as it is and learn to apply what is offered to you today.
Elaboration of several working options for overcoming the crisis
Financiers recommend rationalizing the business as much as possible. Namely, to form a financial cushion, to study the segments of your business, to eliminate unnecessary expense items. It is also worth abandoning risky investments, developing new strategies, and implementing improved developments. It will be useful to reassess priorities in a crisis situation, analyze current goals, and possibly change them. Learning from the experience of other companies that successfully emerged from the crisis is good advice for business owners.
Changing your attitude to the situation
Eliminate the position of the victim – it will not bring any benefit. If it is impossible to change reality, you need to quickly change your own attitude towards it. Let the crisis be the good jolt you’ve been missing to focus on other opportunities. The time for change is coming, but such is it for those who have managed to focus not on negative experiences, but on the search for opportunities.
A crisis is a big stress for a person. It must be remembered that life goes on, despite the ongoing changes in the world. In addition to work, business, the development of new ideas, you should give yourself a break and relax. This will help sports, going to the cinema, meditation. Also, long walks in the fresh air, adherence to the basics of proper nutrition, drinking regimen.
How to survive a crisis: general tips
Tips on how to survive the financial crisis that every person should follow in order to improve their own situation:
- Close existing loans ahead of schedule, refuse to issue new loans. People with large loan debts are in the riskiest group. Alternatively, you can refer to the function of restructuring loans. You should also try to close loans ahead of schedule, and bet on reducing the amount of the monthly payment, and not the term. However, here you need to act carefully – it is wrong to allocate all the money only for this item of expenditure.
- Form a "financial safety cushion". Its size must be at least six monthly incomes of a person. This money is enough to survive the most difficult time, find a new job or a way out of the current situation.
- Clear grocery shelves. Even with a small wage, many people are used to filling the refrigerator so that all the shelves are completely occupied. It is not easy to control the consumption of products, but you should try to pay attention to everything that is thrown away, spoiled. According to the data, the average article throws away about 10 kg of food every month, which in monetary terms seems to be a rather big amount. It is recommended that you pay attention to learning how to plan your menu in advance and purchase products based on it. When shopping in stores, you should always be guided by a list of necessary products and items prepared in advance. This will positively affect the thickness of the wallet and the amount of waste.
- To save money. This will help you keep track of your income and expenses. By recording purchases and other expenses, it will be possible to track where the money goes. After this list should be analyzed, to identify items that are not mandatory and without them it is quite possible to live in a crisis period. It is also worth revisiting your own spending behavior. Buy things and shoes on sales, use discount coupons and cards, compare prices in different stores and choose more profitable options.
- Find an additional source of income. Today, anyone can find an additional source of income. This can be work at home for writing texts to order, creating websites (if you have the appropriate knowledge), doing handmade for the purpose of selling, performing any services for money, and more. It is also worth reviewing your belongings (clothes, shoes, items) and selling unnecessary ones through online platforms. Nowadays, all roads are open to mankind – you just have to want.
- Be positive about what is happening, but take into account the possible consequences. Do not spend a lot of time and energy thinking that everything will be bad, panic. It is better to direct these same resources to the development of a further plan of action.
Following the above tips, in a year a person will secure an increase in income, a decrease in expenses, closing debts and a nest egg. Nobody says that the crisis will come tomorrow, so we still have some time. And experts strongly recommend using it to strengthen their own positions.
How to Survive the Financial Crisis: Tips for Entrepreneurs
Tips on how to survive the financial crisis for entrepreneurs are presented below:
- Focus on economy class. In a crisis, the entire middle class will descend here, and this is about 70% of consumers from the total market. It is important for an entrepreneur to make it clear to potential customers that only he can satisfy their needs in the most profitable way.
- Saving. In difficult times for business, there should be savings. As an option, moving to another more budgetary office, reducing the cost of official transport. It is necessary to save on production, but not on the quality of products and services. Reducing production costs is possible with the refusal of a particular service, reducing the volume of materials.
- Identification and elimination of excess. It is necessary to carefully review the company’s expense items, to determine without which of them the production and business as a whole will continue to work. Expert tip: never stop advertising! It should always be, but it is not forbidden to consider its budget options.
- Legal and economic protection. In the first case, an example would be an indication in a long-term contract of a clause on price changes against the background of rate fluctuations. In the second, the transfer of the company’s assets into reliable savings (securities, foreign currency, precious metals).
- Using the crisis to your advantage. Against the backdrop of a difficult economic situation, this or that company, with the right actions of the management, can become successful and developing. Creating new services for potential customers, using a cheaper labor force, improving the quality of service – all these are options for how a crisis can be useful for a company’s development.
The tips presented on how to behave in a crisis, if you are an entrepreneur, will help you survive difficult times, accumulate your own strength and means to reach a higher level than before the economic discord.
Financial crisis in the family
The family is a fortress and strength, but even here difficult situations happen. Stability can be broken by job loss, economic changes in the world and others. But it is important to cope with them together, supporting and helping each other. Because otherwise, the already difficult period will worsen even more.
First of all, a married couple should set two important goals for themselves – this is maintaining a respectful, trusting and warm relationship, as well as improving the financial situation. Based on this, an action plan is developed, which must be followed by both partners. Otherwise, a “catamaran effect” is formed – this is when success is achieved on the condition that both partners are rowing. If there is only one rowing, then the catamaran will circle endlessly in one place.
How to properly survive the financial crisis in the family, in order to maintain a relationship with a partner, below.
How to act in a financial crisis for a family to maintain relationships with each other:
Refraining from reproaches
Any person in such a situation feels bad, he needs moral support, outside help. If the difficulties are associated with the loss of a permanent job, then you can try to help the unemployed with the search for suitable vacancies, preparing for upcoming interviews. You can look for a new job not only in newspapers, but also through the Internet, relatives, acquaintances or neighbors. A person who really wants to find a job finds it – it’s a matter of time.
The problem is already there, the situation cannot be fixed
So you don’t have to talk about it all the time. It is better to spend this energy, time and attitude on finding options for solving it. In addition, do not forget about each other – you can spend an evening together watching a movie, cooking a delicious dinner or an evening walk. Alternatively, you can find a common hobby that will help take your mind off financial problems.
Fighting in loneliness
You don’t need to swear at each other – this will not have a positive effect either on relationships or on the family budget. Psychologists also do not recommend restraining oneself in emotions – there must be a way out. The utterance can take place in another room, in a pillow, when no one is at home.
We cry if the soul requires it
After that, it becomes easier, so you should not deny yourself such pleasure. Again, alone.
You can do this with a girlfriend, boyfriend, or someone you can trust. We listen to their words – valuable advice is often hidden in them.
Doing the exercise "Thoughts on paper"
We take a blank sheet of paper and write here everything that has accumulated inside – all emotions, feelings, thoughts, ideas. It also helps to relax well and relieve tension.
We talk to each other
About how the day went, what you want to eat, the work done over the past day. Topics for conversation can be anything. It is known how difficult it is for a woman to observe the silence and indifference of her husband in family problems. It is important for the partner to show that he is also worried, looking for ways to resolve the situation. There is no need to be afraid to touch on this topic with your spouse – it should be considered and analyzed by you. However, referring to point number 2, you should not talk about it all the time.
These tips will help partners understand each other, maintain respect and love among themselves.
The following collection of tips for couples is focused on changing the situation in the family, getting out of the financial crisis and securing a financially independent future.
What should spouses do during a financial crisis?
Learn family budgeting
This requires controlling the expenses and incomes of all family members.
Build a financial cushion
In a period of financial instability, this is not easy to do. Ideally, if the couple thought about it long before the difficulties occurred. But if not, then you should start setting aside 10% of any family income as a financial cushion.
Its presence will allow you to feel more confident in the future. It is important not only to start saving money, but also to ensure their integrity. This can be done by opening a bank account and transferring money to it in the specified amount. The account should not provide for the function of early withdrawal of funds – this is important.
Go shopping with a list
Train yourself to only go shopping with a list made at home. In the store, such delicious cakes, sweets and drinks are always “looking” at us from the shelves.
But whether this is a matter of prime necessity is worth considering. The list will help you not be tempted and save money in the family budget. By the way, the amount of money in the wallet should correspond to the approximate amount in the list. This is an additional way to protect yourself from unexpected expenses.
Rank your planned future purchases in order of importance. For example, in the "Delay until better times" list, include all major durable purchases (real estate, vehicles, jewelry, household appliances).
It also includes expensive acquisitions that require additional costs.
Don’t go on adventures
Beware of financial instruments that promise to increase your investment in a short time. At all times, scammers continue to work, and their methods of deception are improving every day.
The main thing is the family budget
Learn how to make purchases that are profitable for the family budget, compare prices and purchase the necessary item or service where it is cheaper. It has never been shameful, and especially during the financial crisis.
Seasonal, pre-holiday sales allow you to buy branded items at a reduced cost and thereby save. But when choosing clothes, you should give preference to the basic things of the wardrobe.
It is better to wait a little with bright shades and non-standard cut, because such things should be complemented by appropriate accessories, shoes, jewelry. These are additional costs.
3 extra tips
- Girls should abandon experiments with their appearance in favor of the usual set of tools. But now is not the best time to buy an advertised cream or hair dye, because the purchased products may not be suitable. Then you can’t get away from unnecessary senseless expenses.
- Increase investment. The most valuable thing that every person has is health. Investments in it should always be, regardless of the financial condition of the family or the country’s economy. Second is education. Personal development will help you find an additional source of income, and valuable employees are needed everywhere.
- Start looking for your favorite activity. Sometimes it’s hard to find time to just read a book. But here it is important to set this goal and give it at least 1 hour every day. During the crisis, there is a reduction in jobs, a decrease in wages, which is fraught with despondency and depression for a person. You can distract yourself from negative thoughts by finding a favorite activity. The result may pleasantly surprise you, and in the future provide a stable high income. This can be the creation of interior items, design, cooking desserts, sewing or knitting. A person who is in search should try himself in everything, even if something is categorically unusual for him. Not everyone is destined to “find a job they love so that they don’t have to work a single day later.” But everyone should do their best and try to do it.
By listening to the advice presented above, a person in a crisis will be able to withstand difficulties, regardless of whether he is an entrepreneur, an employee, or even unemployed.
The main rules of conduct during the economic crisis are savings, the search for additional income, the rational use of funds, self-development and a positive attitude. Even if the crisis does not come, following the mentioned points will in any case have a positive impact on your financial situation, teach you how to properly manage the budget with its further increase.