Do you hear that?! The sirens! They’re wailing all across the city.
It’s an economic collapse! Grab your kids, grandmothers, and cats then head for the hills. There’s no telling when this one will end. We’ll need a monetary sacrifice to the gods of finance to save the world.
I sure hope you’re prepared for the impending doom. Maybe you’re feeling a sharp pain in your chest because you realized you have no idea what to do during this upcoming financial disaster. No sweat! Check out these 4 tips to prepare yourself.
1. Set up an emergency fund
As the stock market plunges and the economy takes a deep dive into the toilet be sure that you have money set aside in your emergency fund. At the very least you’ll want to have enough money to sustain you for 6 months. More is always better.
Additionally, it’s a terrific idea to move money into more liquid assets. What the hell does that mean? Basically, make sure whatever you have can be converted into cash quickly. Adjust your portfolio accordingly. Typically people will transition their holdings into certificates of deposit or treasuries. There’s nothing worse than needing money in an emergency and having to wait days to get access to it. Don’t get caught in that trap!
During any financial crisis, it’s best to be nimble.
2. Continue to invest in yourself and your business
The aftermath of 2008 brought Uber and Airbnb to the world. That’s proof that it’s possible to flourish even in tough times. So, don’t stop working on yourself or your business!
Leadership skills will always be in demand irrespective of market conditions. Don’t just think because the market is being slammed into oblivion that it’s pointless to learn new things. It’s especially useful to become well versed in finance during market drops.
Remember, just because the economy is floundering and losing value doesn’t mean you have to.
3. Be Frugal
It’s time to stop buying name brand potatoes and designer mustard. It was a good run while it lasted, but it’s time to tighten the budget. In some cases, it’s time to create the budget.
As with all things, the economy is unpredictable. The value of the currency could vary wildly depending on a slew of factors. That’s why it’s good to be thrifty. Look at stuff on the clearance rack or at the secondhand store.
Perhaps your business suffers a shock from the economic climate. Being a cheapo will certainly help! Be money conscious and account for every cent.
4. Pay off your debts
Just do it already! Get the credit card companies off your back and rid yourself of that disgusting monthly payment. Come on, you feel bummed out when you make the payments anyway!
Financial instability is a nightmare. Imagine that your company fails, or your main income stream dries up. Unfortunately, you still have loans that require a monthly payment. By paying them off as soon as possible you free yourself from this frightening chore.
In general, debt isn’t fun either. I’ve never met anyone excited to make a payment on any of their loans. So, get rid of it as quickly as you can. Save yourself from the gut-wrenching agony of having to figure out how to make a payment without an active income stream.
I think you’re going to make it to the other side of this collapse. I believe in you. Financial upheavals are excellent times to build new things. Study the companies and millionaires that were made during recessions and depressions. You’ll see that it’s not a time to survive, rather it’s a time to thrive. Be the minority that looks forward to the crash.