How to overcome economic crisis

How to overcome economic crisis

Though the money is a dominant factor in our daily life, not only money but also money management is an essential one. The global economic crisis and financial crisis of people in all nations at all times reveals the relevance of money management and economic planning as well as point out the lack of proper control over money. In reality 90% of individuals are under economic crisis. Economic crisis defeats not only nations but also individuals and families. As a result of financial crisis of individual, somebody live like poor, others become lords of debt, and again some others get married suicide in order to avoid the crucial face of economic crisis.The life expenditure of today is very high, but it increases Two times due to our lethargy, increases Three times due to our boasting and increases four times due to our stupidity. But wise people overcome economic crisis through sensible procedures and proper money management. They earn more, save to the future and enjoy every moment of time with out any tension concerning debt and future expenses. How they are achieving economic balance? How they can overcome economic crisis? What are the solutions?

Don’ts

1. Don’t purchase to assets during economic depression and peak of boom, wait to the peak of depression.
2. Don’t purchase consumer durable s by using credit or installment scheme. If you are not able to buy a commodity by ready cash, wait to achieve the economic ability to purchase that good with ready cash and save interest payment.
3. Don’t purchase unwanted consumer durable s and nondurables, buy commodities only in necessity.
4. Don’t depend only one bank for your financial transactions especially saving and investment because diversification always protect you. Many banks collapsed in Indiadue to various reasons. ( Centurian bank of Panjab,Bharat overseas bank, Lord krishna bank, Nedugadi bank, Bank of Madura, etc )
5. Don’t depend only one route for your income, it may block due to any unexpected reasons.Try to start a hobby , that will helps you to make extra bugs.
6. Try to avoid credit cards from your daily life, make use of it only in emergency situations.
7. Don’t permit credit repayment to exceed more than 20% of your annual income.
8. Don’t make use large share of income to illiquid assets ( eg : Real estate, stocks with low trading volume etc ) or activities. Avoid greedy investments. Illiquid assets still have value and, in many cases, very high value, but are simply difficult to sell.
9. Try to avoid highly speculative dealings from your daily life.( Please dont do active in derivative markets/ intraday trading in Equity/Commodity and currency Markets)
10. Try to avoid unwanted subscriptions. Dont run behind offers. Do need analysis before purchase - Save money, time and energy of yourself.
11. Don’t follow the fast food and luxurious dish culture - Save money and your health. Remember ‘you can buy medicines but can’t health’
12. Forget / reduce your drinking habit - Save money and your health.

To Do

1. Do a proper financial planning. Do proper asset allocation as per your financial responsibility. Try to save minimum 40% of your monthly earnings.
2. Select loans which are less interest rates.Before taking any loan, consult with various banks and Non banking finacial companies.
3. Book profits from your investments regularly. Get professional advise for this.
4. When you have decided purchase a product to Evaluate market prices . Understand the Fair Value of the product. Do healthy bargain . For Eg 1 kg Tomoto Rs 20 is fair. current market price is less than Rs 20 purchase for next 10 days, By this way you can control your monthly provision budget. Before going to supermarket Make a Grocery List what all the items you want to buy and stick to this list. Prepare a priority list before all of your purchase.
5. Do not default your loan EMIs. Complete your bank transactions before 10th of each month. It will help you to earn more SB interest and and better credit rating.
6.Try to respect money, get the ability to control your peer pressure and unwanted expenses.
7. Take economic decisions only after critical analysis of all aspect and discussions with experienced professional.
8. Try to set short team and long term goals in your life and meticulously work for this.
9. Try to know secrets of micro and macro economy.Learn, how you can you get benefits from this.
10. Organize and strictly follow personal and family budget.Create an Excel Sheet/ or cash management book to manage your daily income and expenses.
11. Follow the habit of annual auditing of assets and liabilities.
12. Keep One month family running expenses as Cash at Home. Keep 3 moths family running expenses in your SB account.
13. Use debit cards with proper control.
14. Take an additional initiative to reduce your transportation cost by way of reducing number of own vehicles and using public transportation system instead of private vehicle or own vehicle.This way you are supporting for Green and Clean energy.
15. Try to convert time into money.
16. Try to convert concepts into money.
17. Try to earn with hard work and proper channel as well as try to find out new sources of income.
18. Try to completely utilize goods that you have purchased.
21. Recycle or collection and sales of scrap from your home and firm is additional source of income. So try to better utilization of resources.
22. If you have several sources of income, you should properly control them. Get professional advise for this.
Remember!
1.
To earn one more ruppes require an additional hard work. But spending of that one is very very simple.
2.
If money is in under our control we are rich, When money control our self, then we are poor.