While everyone lament shortage of money during recession, one sure shot way to be financial comfortable is often not heeded. The way is to reduce the expenses and needless purchases. The expenses may include foreign trips, home makeover or any new gadgets. Any purchase that is not essential and can be put off should be put off for the future when the cash flow is much better.
For most people, these times are trying and hard. The economy is not going to get better anytime soon and in fact, we may see a double dip very soon. So while government does it part to manage economy, we can help ourselves to make our lives tad easier in this downturn economy.
1) Love your Job: First casualties in recession are new jobs. Companies stop hiring new recruits and in fact lay off many jobs. At this time the best job is the job you are holding. So, stay put where you are working right now and work hard. Banish any thoughts of finding job in any other company and cement your position in your current job.
2) Cost Cutting: Cost cutting is just not for corporates. You too should avoid lifestyle purchases like new smart phones, laptops, play station etc.
3) No new Loans: Do not make any purchases which mean new Loans. New cars or house are a strict NO when there is no job guarantee. EMI may mean additional strain on your budget. In a scenario where you can be laid off or you may face salary cuts, this is suicidal.
4) No Risky Investments: This is a time for conserving your resources. Do not invest in risky avenues like equity. Only invest considering your risk appetite. If you are in a business, then hold off your business expansion …