The economy is like a roller coaster. It goes up and then dips down with all its might. The thing about this roller coaster is that it takes it with you whether it is taking you sky high heights or to the bottom of the abyss. If you are in the sky, then no problem and congrats! But when economies fail and collapse on itself, it takes you with it to the rock bottom.
We have seen many economies go into recession and so many people are put out of jobs. It is not an unprecedented sight to behold. This may be caused due to poor planning of the financial policies of the government or due to huge debts. We sometimes cannot predict when this apocalypse may come knocking at our door.
What can be done when you are dwelling in the abyss of the financial crisis? You just cannot welcome this unruly change. Fortunately, there are various ways by which you can survive this apocalypse without it even affecting you. Hence, I have jotted down a few points which will help in a lot of ways to plan for any financial collapse you may expect in the near future and prepare for it according. So without wasting any time lets dive into it.
- Personal Finance
The first step whenever you get a job is to manage your personal finances efficiently. You have to be impeccable in managing your finances. You have to jot down points where you actually need to spend money and where the expense can be avoided. There is no shame in living a humble life away from buying unnecessary things that advertisements have us convinced that we need them immediately otherwise our life is worthless. Understanding this concept is the first step towards a better life and learning where to spend your hard-earned money.
This is a by-product of the point above. If you start spending wisely you’ll notice that you have suddenly started to save a lot. Your savings account has suddenly started showing you significant amounts. It goes without saying that saving is absolutely necessary which will help you when there is a financial collapse and the economy is not just running smoothly. You should make it your habit to save ample amount of your salary to a savings account no matter what, and that money should not be touched at all costs.
- Creating a Budget
You have to create a strict budget for your living. If you are single, this step should be easy. All you would need to do is fight your cravings for eating out and buying unnecessary stuff. A budget will guide you through the month and will strengthen your financial abilities. Moreover, you would be able to monitor how you spend your money throughout the month and where you need to cut down your expenses. It would provide a full analysis of your spending habits. Money once spent is sure to never return back to you ever again. So, all you can do is spend it wisely and hopefully save enough for a rainy day.
According to me, debt is your biggest enemy. It often brings people down to their knees and takes everything away from them. What your goal in your life should be is to remain debt free at all times. Similarly, you should learn to live a credit card free life. Suppose you have a lot of outstanding debt and then a financial collapse hit you. Now, you have to pay your debts with outrageous interests from your savings account. Do you see how screwed are you? Even if you have a few debts, your mission in life should be to pay them off as soon as possible, because debts and scams are your worst enemy and they won’t think twice before completely destroying you.
- Creating a passive income
Passive income is a flow of income where a minimal amount of work is required. You have your full-time day job, great! But also start working on getting a passive income. There are a lot of ways by which you can earn passive income. If you are good in software, you can freelance or you can teach coding. If you have good writing skills, write articles for a blog in your free time. Create a fixed deposit and enjoy its returns. The ideas don’t cease to exist. Adopt one which you are comfortable in.
Any financial collapse of any kind cannot touch you if you prepare for it beforehand. People almost never think of their future and do not create a consolidated financial plan. So, when economies dip, they also dip down with it. But you can be ahead of the curve if you follow these tips and take control of your financial responsibilities. Nothing can stop you from living your life on your own terms, not even collapses of trillion dollar economies.
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