When multinationals get bankrupt, we, the general masses don’t stand a chance. Thousands were left without a job and many fled the country to avoid paying long due bills. Even though there are signs of the worst of the recession being over, one must not forget the hard impact it had on everyone across the globe. The occurrence of it has made the proper evaluation of personal finances a necessity at all times. One can never be sure when the hard times would return again to haunt us.
Here are some of the Do’s and the Don’ts that should be kept in mind while dealing with personal finance.
Emergencies should be prepared for: Emergency is something that can always come without giving a prior warning. One should always keep some extra cash to meet such times. These, better known as savings should not only be with the various firms or in banks but at home for easy and fast disposal. Failure from keeping this safety precaution could mean troubled times whereas, if prepared, one can easily forego the problems by cashing in with the reserves.
Multiple Policies and Accounts: Being stuck with one policy or one firm is not recommended. One can never be sure if the company that you trust the most would not go bankrupt overnight. Many have been left homeless by trusting only one. BY having multiple options open, you can bank upon the 2nd policy if the 1st backfires. Also, if you really do plan to invest, participate in all the options offered by the investment companies thereby reducing the risks to the minimum.
SAVE! SAVE! SAVE! : This, although mentioned at number 3, should be the top priority, if possible. Savings can only be done by reducing the per capita costs of your household. It is essential that the family members understand the ill effects of lavish spending. Remember, every drop of water is important for a thirsty man, similarly, every penny saved will add up to save your day someday.
Continue the long term plans: Any long term plans that are underway should not be stopped but continued. Sometimes, it is better to look though the short term goals and look at the longer ones. What might look and sound unimportant and a waste may repay your debts with interests in the future. Another important aspect is to prevent oneself from taking any drastic measures by reaching a state of panic. A step taking under stress generally does no good to the already shaken situation.
Don’t Experiment: If you don’t know ABC of something, reserve yourself from it. It is not brave but stupid to experiment in troubled times. The time to experiment should be limited to healthy and wealthy periods. When everything seems sliding down the slope, trying to pull out an upward stunt is risky and uncalled for.
The aforesaid points, if followed with care wouldn’t guarantee an upward trend in your condition but would sure guarantee to keep troubled times at bay. Risks may or may not payoff wherein, one stands a chance of hitting the rooftop or getting a big blow to all the future plans. Make you pick with care and due consideration to the effects that may come with the choice.