A financial crisis is by no means an easy thing to deal with mentally. Stress can affect your body too, and whether you’re at work or laid off, you can quickly burn out. Every year thousands of people face some form of financial crisis, but 2020 took it to a whole new level when the pandemic started.
Whatever the case, financial situations should be a topic that more people are discussing and learning how to prevent. Naturally, we can’t predict everything but making sure you can survive when you get dragged into a financial crisis is necessary.
Since they don’t teach that in schools, we’ll try to provide our honest advice for improving your financial mindset (and status). We’ll talk about what you can do to make your situation easier even if you’re not in financial trouble and show you what you can do if you are.
Let’s start!
Emergency fund
Do you think about rainy days and setting aside some money, even if it’s 100 bucks a month? Imagine saving that much over the course of a year. You can have 1200 dollars, which can cover some expenses while you are in survival mode. It’s not much, but if you have almost nothing you’ll be more than willing to take it.
This is the most common reason why people take it for granted and don’t try to create an emergency fund – it seems like nothing. Remember, no matter how much money you put aside, it will come in handy when you least expect it. While emergency funds exist mostly for paying a few unexpected bills, they can be of great help when dealing with a financial crisis.
Make a plan
OK, so you’ve run into a problem, and while it’s inevitable you’ll think about it over and over, you can also take action. If you can’t pay your bills, you have time to consider your options. Can you redo your CV and start looking for jobs online? While there is competition, you need to do whatever you can while you are out of it.
Once you’re done with those thoughts, think about work. Look to teach languages online (native English speakers easily get such jobs), copywriting, become Virtual Assistants. If you’re afraid you don’t know enough, take the time to learn the basics, and then when you get the job, learn as you go.
While it can be a way out of your comfort zone, being in a financial crisis is not a comfort zone either. The side hustle of the house will save you from traveling and spending extra money (you should save it). It will also add to your portfolio, and you will have a new set of skills even if you decide they are not for you once you get out of a dire financial situation.
invest
Despite popular opinion, many are aware of it forex trading can be a good side business if you do the right research. Suppose you are willing to spend a few hours finding a licensed and regulated broker. In this case, there shouldn’t be any issues regarding security and worry if someone can steal your money.
There are regulator websites that keep track of regulated companies, and if you can’t find one you’re interested in on their list, go ahead and look for someone else. It would be better for a broker to check broker reviews as they will give you an insight into which platforms a particular broker offers and their portfolio.
Also read the comments! We mentioned Forex to raise money aside because you can invest as little as 100 dollars and decide to buy stocks for 50 or even 20 dollars. It’s up to you, but make sure to create a trading plan, set your goals, and do all of that with your broker. Make sure to do enough research. Good luck!
