Financial Management in Recession 2017 wealth insurance tips
At some point we all go through financial difficulties that lead us to make some drastic adjustments to our living pattern. The need to reduce our cost of living is our best bet to avoid bankruptcy, But “How do we reduce the cost of living and maintain a healthy financial lifestyle”.
Having some good tips on Financial Management become very vital if you don’t have a ‘BA in business or financial management certificate already.
During a business seminar I attended some months ago this question was asked by one of the attendee’s—WHAT IS THE BEST METHOD TO MANAGE COST OF LIVING IN TIMES OF FINANCIAL CRISIS AS SALARY EARNERS? Hmm😒😒! to be very frank with you this question really got us thinking very deep as many were already battling with a financial crisis at this time, though many suggestions were raised by some of the instructors. But the fact remains financial management is not a very easy task to handle.
So in an attempt to help you maintain a healthy financial lifestyle, i have put together this piece I titled: “Financial Management in Recession”. Learning some extra tips on how to manage resources would really go a long way to help you maintain a healthy financial lifestyle. Though there are over a million ways to manage finance and cost of living. For this post we would just consider a few but relevant tips to reduce cost of living and maintain a healthy financial lifestyle.
Below are my most recommended tips to maintain a healthy financial lifestyle;
Plan your Spending: Do you want to reduce your expenses? You have to put yourself on a budget to achieve this. You can either make it daily, weekly or monthly. Have a close watch on your finances for it will keep you financially stable. Some of the world billionaires have experts who they pay to help them regulate their expenses and finances. You are not a billionaire, yet to think you don’t need to place yourself on a budget. How would you become a billionaire? The ball is in your court.
While creating a budget, you will have to make room for unforeseen expenses, the amount you want to save among others. You have to stick to your budget strictly!
Avoid Unnecessary Holiday trips: It is true we all love to travel, but an attempt to cut down the cost of living. You would need to consider carefully why you need to make such trip and where you intend to travel to as well as the financial implication of your trip on your weekly, monthly, annual budget.
Travel when it necessary and financially convenient. Do not travel for the sake of exploring new cities but if you have to it is good for you to consider travel packages from travel agencies as this will help you reduce cost.
Reduce Fast food patronage: It’s high time you stop eating out and start making your meals. This will certainly save you a lot of money. Recently a report from the University Hospital blog showed very high statistics of over 50 million American’s who prefer fast food (from McDonald, Starbucks, Dunkin Donuts, Burger King etc.) to home-cooked meals.
When you consider how much you spend on buying junks and eating out only then you would have no choice than to quit. Most that can’t do without eating out are advised to reduce it by any means possible. Taking your lunch with you to work is a good habit you have to cultivate.
Reduce Shopping Rate: In times of financial recession it is very important to check your shopping rate. Buying new clothes each time you are going for an event is not really the best as it is a very wasteful act.
You should plan your shopping, create a budget but if you ran int an item, not on your budget and you really would love to have such item in time financial recession the best advisable thing to do is to add it to your next shopping budget and not dismantling your budget just because of such items. Many people know this but still go-ahead to break the rule. Don’t exceed your budget.
Sell Unused Items: Now that you have discovered ways in which you can reduce your cost of living. You might want to sell some of your unused items that consume almost half of your monthly income. You have 3 cars, why not sell one? You don’t like to sell your stuff, give it out to someone who needs it. There is no point in you acquiring liabilities you don’t make use of. To reduce your cost of living, you have to be in control of your expenses.
Increase savings: After all is done it is best to adopt a saving plan to keep some extra cash somewhere safe for the rainy days. Yes! you should never ignore this fact that there is always going to be a rainy day, get prepared for it. Amazingly this is the most prominent method a lot of people tend to employ in Financial Management.
Invest: Lastly, you might want to consider investing some funds. Really? Yes I said invest, hold on, I know you are already wondering how this relate to financial management or cutting cost. Now, while saving some cash you should also consider investing in some in a profitable business that can guarantee good returns.
Thus this may be how far I can go on this topic Financial Management in Recession. If you have explored other method you might want to share with us and 3000 readers from across the globe via the comment section.