6 SECRET TIPS ON HOW TO SCALE THROUGH FINANCIAL CRISIS

Most of the time, negative things that affect us financially occur when we least
expect it and it is usually a stage in our lives where we experience a financial
crisis. It could happen to an individual or a family, it could be an accident that is
fatal and lots of money will be spent, it could be an illness, or loss of job. Most
times in the family, sudden death of the family’s breadwinner or loss of job
usually put them in a financial crisis. Well it could be anything at all, but I’m not
here to talk about that. Quickly, let’s talk about the tips that can help us scale
through a financial crisis as an individual or as a family.

1 . Minimize your monthly expenses:

This is one of the things that should first be
done. You will need to cut down your monthly expenses, this means you will need
to cut off the things you can live without. Make sure your monthly expenses are
as low as possible as it will help you spend less every month end. Apart from
cutting out the unnecessary things, if you have the habit of letting your air
conditioner or heater run when you are not home, or leaving the lights on when
you’re not home or not using the room. You will need to start making
adjustments so as to reduce your utilities bill in order to further reduce your
monthly expenses. Also, when you go grocery shopping, try to compare prices
and ensure you get your groceries at the best place. You will also want to
minimize the rate at which you eat outside, it will be wise to eat at home most
times. Making your coffee at home or even packing lunch to work is not a bad
idea. This tip is suitable for individuals and families . Although it will be easier to
adapt to it as an individual.

2. Create a budget:

if you don’t know how to create a budget, this is the time you
would need to learn it. You need to be able to know where your money goes and
budgeting is the best way to know. Also budgeting will help you know where
exactly to spend your money and will help you avoid impulse buying. This is
another great way to manage money, once you are able to create a budget then
you will see areas where you need to spend less and this will enable you to be able
to save as well. Budgeting allows you to spend less on unnecessary things and
direct your focus on more important things, like paying off a loan.

3. Figure out the cause:

this is supposed to be the first thing to do, you need to
know the exact cause of the financial crisis. Figuring out the cause will give you a
better understanding and help you think of ways to resolve the financial crisis.
Finding a permanent solution to it is very important instead of dwelling on the
problem and stress which will worsen the situation. If it is a loss of job, start
applying to other companies to get a new job. Whatever the problem may be,
make sure you find a permanent solution to it.

4. Set financial priorities:

your financial priorities should be focused on how to
get back on track and get out of the financial crisis. Although these priorities
might be a bit tough, it might be paying your mortgage, paying off the credit card
bills, saving up to buy a house or repair your family house. Set financial priorities
that will reduce the liabilities.

5. Have multiple streams of income:

this is one of the best ways to overcome
financial crisis. A stream of income is not enough to get someone out of a
financial crisis, having multiple streams of income means money. You can have
more than one side hustle. In fact, instead of wasting your free time, use it to do
productive things that will fetch you extra cash. There are lots of side hustle you
can do, you’ll just have to find the one that you are okay with. Even when you
check online, you would see so many online jobs that would not take much of
your time but still pays.

6. Set goals on how to overcome the crisis and monitor your progress:

setting
goals will show that you want to get out of such a situation as fast as possible.
Setting goals towards the things that will bring you out of a financial crisis is very
important but monitoring your progress is more important. It is not enough to
just set goals, your goals need to be realistic as well and you need to ensure you
are making progress as well.

Takeaway.
If you feel you have lost control over your finances and you are not sure of what
to do you can as well speak to a financial advisor. The financial advisor will give
options on how to tackle the financial crisis and over it and will also help you
monitor your progress along the line.