It is certain that the crisis is there to stay and that is no news to anyone that it will last long enough to exceed. This reality drives the urgency of protecting your finances from the crisis by adopting simple strategies and changing behaviors and habits.
Although there are indicators that make us dream of a potential economic inversion, for example, those that we talked about in our article on Investing in national actions, the truth is that, from one moment to the other, the paradigm changes and influences any future perspective.
This instability and uncertainty is evident in the economy and ends up “infecting” the finances of any family that increasingly needs to protect their finances from the crisis. Here are some tips to help you with this task.
Protect Your Personal Finance
Nothing better than being prepared for the unexpected. An extraordinary expense that was not in your accounts when it happened can put your whole financial organization to the ground. The best way to protect yourself against the unexpected is to create an emergency fund, that is, a stocking with total liquidity and no movement penalties to put there at least 6 times your monthly income or 6 months of all compulsory fixed expenses and mandatory variables that it possesses.
Track and Optimize Your Monthly Budget
If you do not already have a monthly budget, know that you are missing out on a good opportunity to get to know your personal finances thoroughly and to determine what your savings and consumption habits are over time. To budget is to plan is to protect from the future and to simulate unexpected situations. Knowing what your expenses are and what your revenues are the first step towards optimization.
Discover Money Saving Alternatives
Sometimes, everything we know and the beliefs we possess contaminate our creativity. Saving money does not mean effort or sacrifice, because saving money is about simplicity and changing habits. Keeping your tastes and desires is possible, just look for ways to satisfy them without spending money. The tips are immense, such as family outings, outdoor activities, among others.
Take Your Credits
If you are experiencing difficulties in meeting your claims then know that there is legislation that protects you and facilitates negotiation for better conditions. Question your bank or the financial ones for that purpose. It is true that any change in your credit will not translate into savings in the cost of money, but a reduction in financial weight. However, there is no credit settlement strategy that does not go through a restructuring of the same.
Seek to Start Investing
It is certainly not advisable to start investing while your personal finances are not prepared for the crisis, but at least do not delay investing knowledge. Begin to notice how the markets and their assets vary. Learn how to invest in stocks, mutual funds, bonds and even time deposits.