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Tips for surviving in a tough economy

Wilson Luna

Economic turbulence has changed the way we think about our finances – especially about the things we used to consider to be ‘safe’ bets. When times are tough, you need to take certain precautionary measures to protect yourself and your family from a potential financial crisis. It may seem easy to just throw your hands up in the air and let the wave of economic turmoil take you where it may, but there is another alternative and it’s not even hard to do – take control and help yourself by steering your financial ship in the direction you want to take instead of just being swept along. To find out more about how to do this, take a look at these tips:

Tip 1: Track your expenses and manage your budget
One of the best ways to manage your finances is to use some sort of accounting software to keep track of where your money is being spent. Once you know where you and your family are spending money it’s easier to come up with a cost-cutting strategy, allowing you to put more of your income into your savings instead of simply frittering it away.

Tip 2: Negotiate better deals on your fixed expenses
There are many fixed expenses that people think can’t be changed, such as service provider charges for things like your phone, mobile, power and internet. The fact is that these days many service providers are willing to negotiate lower charges as they try to retain customers, so a lot of companies will be willing to adjust costs in order to keep your business. Try getting on the phone and simply telling them that you want to pay less for your service and see what happens.

Tip 3: Hang onto your job
Even when times are tough and businesses are looking to lay off staff, many bosses will think twice before letting good employees go. Usually, the best employees will stick with the business to the bitter end. So to increase your job security, become a good employee. Be reliable, be proactive, take on multiple tasks or roles, increase your company or industry knowledge, be willing to up-skill in areas you could improve your knowledge in – in short, become indispensable. If you are able to hold onto your job through the economic downturn chances are you will probably get a promotion when times are good again – after all, you didn’t just weather the storm for yourself, you helped your company weather the storm too.

Tips 4: Review your finance arrangements
When you sign up for a loan or a mortgage there are a number of things you need to consider along with the interest rate. There are ongoing and one-off fees and charges, special terms and conditions and all of that pesky fine print – it’s all important, so you need to make sure you understand it.

Tip 5: Make good purchases
Yes, controlling your expenses is definitely a good idea but you should also be able to make smart purchases. A rough economy can sometimes stop us from seeing good opportunities to make smart purchases on things that are now cheaper than ever before. If you have the financial capability and security, this is the perfect time to look at buying a house, shares, a car and other big-ticket items, because the prices and incentives have never been better, and there’s still room to negotiate a better deal. With some careful consideration and planning you can get exactly what you want for a great price. If you make wise investments now they will serve you well in the future when the economy recovers.

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Author's Biography

Wilson Luna is an author, wealth adviser and founder of Your Family Your Money. Your Family Your Money’s goal is to simplify traditionally complex financial strategies, demystify financial jargon and debunk common financial myths, becoming every family’s first stop for financial advice, information and inspiration.