Financial crisis happens to even the most wealthy and careful of people. Maybe it’s a downturn in the economy, an unforeseen problem in your business, or maybe you broke up from a partner. Whatever it is it’s important to have measures in place in case you can’t keep you wealth and current lifestyle. These 6 tips should come in handy.
1.Make sure you bank account is insured with the Canada Deposit Insurance Corporation. They protect you up to $100,000 for all financial services offered by chartered Canadian banks.
2.If you need to remortgage your home, so be it. If it keeps you from going under in the short term you have time to map out your financial situation and hopefully get back on track. You may be able to lock in a better rate.
3.Budget. Pride is a counterproductive emotion when it comes to finances. So what if you can’t eat at the fanciest restaurants for a few months, it’s better than getting in to irreparable debt and not being able to eat at them ever again. Go for a cheaper bank account, reassess your car and home insurance options; even do the little things like turning off standby on electronic equipment.
4.Act sooner rather than later. The world economy doesn’t look too bright. It can only go up from hear right? Wrong, it might hit rock bottom first. Sort out debt before it is too late. Security comes before luxury. A good way to keep yourself afloat is to stop using credit cards and use debit cards. Then you can only ever be in the positive.
5.Save! Take a percentage of your income and put it aside EVERY month. You’ll eventually get in to the mindset that the percentage isn’t disposable income anymore. You’ll eventually have a nice nest egg for unforeseen circumstances. Make sure you use a high interest bank account with easy access. There are many online savings accounts that have no restrictions but good rates.
6.Spend less than you earn. Sounds simple right? But many people live on credit or spend before their wage comes in.
A lot of this is common sense and there are many other techniques you can use to keep yourself secure. Just because you traditionally earn a lot doesn’t mean you have to spend a lot.
