Preparing for the Coming Economic Crash – Are You Ready?
With the continuous threat of recession, most people are trying to save money for rainy days ahead. However, it can be nearly impossible for some to save back cash as they are either living paycheck to paycheck or keeping their head just above the water. With that in mind, it’s probably a good idea to have a backup plan if a savings account is not something that will fit into an already tight budget.
Connect With a Backup Financial Source
If financial forecasts are correct, the pace of economic recovery will be slow, and if a person doesn’t have a credit card or open-end loan they can count on, they may need to get creative. An option that may be appealing is a short-term loan from a bank. However, if a person’s credit score is as bleak as their emergency fund, this option could be tricky.
An alternative to a bank loan, non-traditional lenders could come in handy when it comes to avoiding a bounced check. The fees can sometimes be higher than with traditional loans, but it’s a better scenario than having to deal with bounced check fees. If this type of loan is required, there are a number of payday lenders out there that may be able to help. Many people have had success in finding a short-term loan even if their credit is less than excellent.
Spend Money Wisely
Being smart with money can make a huge difference when it comes to being prepared for negative changes in the economy1. Although an emergency fund is a good start, it may help to be more frugal with spending. Whether it’s cutting out fast food stops for lunchtime or choosing the great outdoors as opposed to spending cash on eating out and movies, saving here and there can make a big difference in how a family survives in uncertain economic conditions.
Be Prepared for Lost Wages
For most, their earnings are not unlimited. With that limited salary, human nature still insists that they want or need more things, sometimes more than they can afford. It’s crucial, however, that an individual determines which products to purchase, at which amount and the amount of they will spend. If an individual has $10 in their pocket, they have to decide what to do with that money. They can either buy a quick and easy meal out or choose to put that money aside for possible emergency situations in the future. This economic choice plays a huge role in how well a person is prepared when they lose their job or get sick or hospitalized.
Whether a person’s job security is affected by the economy or a sickness, it’s vital that families be prepared for the loss of wages. As mentioned above, a good way to ensure that the bills get paid is to have an emergency funding source set up to cover these expenses. If, however, there is no savings and the mortgage is due, this may be a good time to look into a payday loan advance.
Another good idea is to stock up on staples when the money is coming in at a more comfortable flow. When there is a stockpile, whether food or toiletries, then that is one less expense a person who is without income temporarily will have to worry about. Consider buying in bulk when prices are down.
While a bad economy does have many drawbacks, it may also provide opportunities for change. Additionally, if a person is well-prepared or has access to quick cash when they need it, they’re sure to be better off when payday comes back around. The economy will probably bounce right back, no matter the current or future forecasts. Meanwhile, consumers may want to keep following good economic advice: Spend less than earned, set up access to money for emergencies, and eliminate debt as quickly as possible. More guidance can be found on the finance blog at PersonalMoneyStore.com.