According to experts, the world is going through a massive crisis. People are comparing the Coronavirus pandemic to a World War kind of a situation. Millions of people are expected to be asked to work remotely or worse be laid off.
In this scenario, it is important that you ensure that your finances keep flowing in. You also need to bear in mind that you might have to prepare for tougher days ahead. Due to this, it is essential that you have enough funds to help you get through the situation.
In this article, Ladder Advisors helps you with five important tips to make your finances recession-proof.
5 Important Tips by Ladder Advisors to make your Personal Finances Recession-Proof
1. Pick up a Second Professional Talent or Skill
Imagine you are a Content Writer who writes SEO based articles. However, you are seeing that you are not getting enough orders. A good strategy would be to start learning how to write copy for Social Media. You can then reach out to brands for social media work.
You are not doing something entirely different from your skillset. You are just picking up a new additional skill that is similar to your own. This will open up newer sources of revenue as well as help you add to your professional resume.
2. Create a Savings Fund for Emergencies
Many people make the mistake of thinking that they will never require savings ever in their lives. We are so complacent in our everyday lives that we feel that no crisis would be great enough to shock us to the core. The Coronavirus pandemic has done precisely that.
If you are earning a steady income, this would be a good time to set aside some funds for your savings. You do not need to invest extravagantly. The idea is to make savings a regular habit of your financial discipline. You can use the amount from your savings during tough times like these.
3. Get Help From a Trusted Financial Advisor
If you are having a tough time managing your personal finances, it is best to take help from a financial advisor. Leading firms like Ladder Advisors are always looking for ways to help their clients come out of financial problems with expert solutions.
From helping you with credit card debts to working out flexible payment plans, you can ask your Financial Advisor for help on different issues. Times like these are a great opportunity for you to start working with a credible financial advisor.
4. Steer Away From Debts At All Costs
During times like the Coronavirus pandemic, it is best to avoid more debt at all costs. This means that you should try to avoid using your credit cards as much as possible. Trust me; you do not want to incur more debts once all this is over.
The money you earn right now should not be going to banks or lenders. It should be directed towards helping you get your bare necessities. Do not spend on unnecessary things during a crisis like situation. If you are generating surplus cash, save it in your emergency fund.
5. Do Not Lend Money During a Crisis Like Situation
There might be friends and relatives, who have been the worst victims of this pandemic. However, it is important that you try to avoid lending money as much as possible. No one knows how long this problem is going to last.
Every penny that you save might help you for another day. If there is not an urgent emergency, put up a brave face and say that you would need the finances for yourself and your family. This is not being mean or rude. You are doing the right thing. If you honestly feel, you have extra, you can lend to help others.
Making poor financial decisions during the COVID 10 pandemic might lead you to emerge poorly from the problems once they are over. By following the above five tips, you can ensure that your finances will be recession-proof.