How to Survive in a Tough Economic Climate

Kimberly Watson, Editor in Chief
April 09, 2012 /

Managing personal finance for the average person has always been a hard task, but never more so, than today, when every day is like an episode of “Survivor”. The difference is that this one is a real life scenario.

However, whether you are earning a regular wage or among the increasing numbers of the self-employed, it is critical that you know what your financial situation is. This could be your means of being a successful financial survivor.

If you do not have a budget at present, it is a usual mistake made by many and one that could lead to aggravate a poor personal finance condition. If you do not know how much money you have to pay your bills then you are a financial accident waiting to happen. Make it a priority in your life, to have at least a basic record, showing a true reflection of your income and expenses.  This could start you on the road to a secure financial future.

As with any stage of your life, setting goals can help you achieve. Make a plan and set your personal financel goals for short, medium and the long term. Do not believe it is going to be easy, because the truth is that anything worth achieving is never a short-cut. However, make your goals attainable, no matter what the prize you aim for is. The principle is to direct your budget to achieve success. Visualize the pride and satisfaction when you achieve that first goal!

Emergencies happen to everyone and the only way to cater for them is to be prepared. Set aside a determined amount in your budget and ensure it is maintained on a regular basis. Look on it as an investment in your future! This also applies to preparation for your retirement. There are many people who have not prepared for their retirement, which unfortunately happens to us all. Again, set that goal and work the plan, as to what you want to do when that day arrives.

An accident or a family illness could put strain on your emergency fund, or force you into a heavy debt. Be prepared and plan for it with the best value health insurance you can find.

A credit card always seems to be the ultimate personal finance solution for those with budgeting problems. Just reading from the many news reports, the credit disease caused by borrowing money and being unable to repay it, has created disastrous consequences for many families, business and even corporations. This could destroy your positive budgeting plans and the crucial goals you have set. If you must use a credit facility, make sure it is affordable and you repay the amount on time.

The money you pay in taxes is your contribution and you should at least have a basic knowledge of filing them. Another person, no matter who it is, will not be as concerned about your money as you are. Therefore, instead of placing the full responsibility with someone else, get involved and be able to recognize any mistakes that are made.

One big criterion with maintaining your budget and your goals is self discipline. Before you consider buying anything you do not really need, think of your budget and how that money makes life a little easier for you and your family. If it involves seemingly great investment potential, research any opportunity carefully and get professional advice.

Be aware of the cost of items and groceries and even how you use services such as electricity and water. You could be pleasantly surprised at the differences you will experience, after just a short time in operating your budgeting plan.

 

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