4 Ways to Survive Hard Economic Times

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Everything in your day-to-day was perfect. Work, home, friends, family in complete balance. However, the situation takes a turn and you suddenly find yourself in the middle of the hurricane. The costs increase and you cannot meet your financial commitments, the employment situation is no longer as stable; friends and relatives becoming increasingly distant. What to do when this happens?

1. Real Budget Analysis

After the scare, the best thing to do is coldly analyze your budget. Put it its actual revenue, if they have one, and all monthly expenses. List here not only water bills, electricity, telephone, mobile phone etc., but also the cost of purchases for the home, clothing, food and medicines. Take everything into consideration.

At this time you may be surprised how was already accumulating higher expenses than your gain, a standard beyond the ideal, leading your family to a difficult situation like this.

 

2. Cut expenses

Aiming at your wellbeing and that of your family, do not be afraid to cut some expenses for real. There are many items in our day-to-day that can be dispensed in such a situation. You will feel a drop in their standard of living, but on the other hand, you can pay your bills and that’s the main thing.

Avoid the temptation to borrow to pay off debts. Choosing this path only if there is no alternative. Remember, a debt leads to another. The safest in this case is that you negotiate the disputes and cut costs as much as possible.

 

3. Family support

If you have children and spouse, try to involve them in the situation. Of course you will not pass your children a huge concern that should be yours, but it’s always healthy to maintain transparency, making collaborate in the home economy by reducing the duration of a conversation on the phone, thinking twice before take the bath, finally, waging a real battle against the costs.

As your partner, or companion, the ideal is that they are more united than ever, sharing decisions and responsibilities.

 

4. Alternative Sources of income

If the financial crisis occurs, even you being employed, it may be interesting to analyze their professional situation. Is your salary is compatible to what you do? No chance of negotiation? If this is not possible, look, creatively, seek alternative sources of income.

If your wife does not work, it may be time to start exercising an activity which guarantees a return. The same goes for your children if they are old enough to fund their studies, for example. To do this, you have to change your mindset. Do not feel powerless or failure of a situation. On the contrary, feel that you have a family really structured to overcome difficult situations.