14 years have passed since the famous crisis of 2008 and the world has changed a lot since then. Today, we are surrounded by technologies that make our lives easier and we can rely on them to get ahead.
At present, there is much talk that another great crisis could come. What can we do if this happens? We give you 10 strategies to help you be prepared.
10 Strategies to Prepare for a Potential Financial Crisis
Contents
Some experts speak of a major financial crisis by the end of 2022, after the summer, and the beginning of 2023.
With inflation in two figures, although many families do not notice it directly, they do see that they make less than they did before with the same money. So, in the long run, they could see that they are not able to save anything and that the situation becomes unsustainable.
1. In 2008 there was no , now there is 🙂
To successfully overcome the approaching crisis, it is now easier than in 2008, precisely because you can make free use of the tool.
Simply connect your accounts and take a look at your FinScore to assess your financial health. In this way, you will be able to know what situation you start from and make better decisions.
In addition, you can set a spending limit per category and find out in which category you spend more each time, so you can get an idea of where your money is going. Without realizing it, you will be saving and you will have more liquidity for contingencies.
2. Personal Finance Program: Education
To have a better financial education, we recommend our personal finance program. It is a pleasant and entertaining program that will help you lay a good financial foundation and manage your money better, so that you can have a good mattress, invest well and feel comfortable.
3. card: control of expenses
To better manage a possible crisis, you also need to have a free debit card that allows you to control expenses correctly. At you can request a free debit card, without small print and that costs you nothing, to make your purchases online and in physical establishments. In this way, you enter an amount each month and spend from there.
It is ideal if you want to reduce your expenses and limit yourself to only one budget every month. In addition, you can win up to 1,000 euros in prizes with the roulette spins for each operation.
4. Make a table and know your monthly fixed expenses (essential)
Another strategy that will help you better deal with a possible crisis is to know exactly your fixed expenses every month. That is:
- Rent or Mortgage
- Supplies (water, electricity, gas…)
- Internet at home and on mobile
- Food
You can also add a minimum for leisure or unforeseen expenses, because you will have them.
With you will be able to know what your essential and dispensable monthly fixed expenses are, so that you can quickly get an idea of everything you can save and the real savings you need to be calm for a few months in case one of the reverse comes.
5. Try to have liquidity to live 3 or 6 months
Knowing the essential expenses you have each month, it is important that you calculate the savings you need to live at least 6 months in peace. It is an amount that may seem very large but is considered necessary in case “one of the reverse” comes to us.
If, for example, you determine that for all the above expenses you need about 600 euros per month, it is important that you have at least six months’ savings. That is, 3600 euros. If you find it impossible to save that much money, try to have at least savings for 3 months1800 euros.
Keep in mind that if you stop receiving income, you will have to continue to face the expenses classified as essential (rent or mortgage, food, supplies…), while you will have to reduce or eliminate the optional ones completely.
What if I already have liquidity for 6 months? What do I do with the money that I have left? In that case, you can continue saving, set a goal or invest it. For example, you can set yourself the goal of saving X euros for the down payment on a home. In the event that you are not interested in buying anything, you can always invest “the money you have left over”.
6. Invest your money to fight inflation
Although it is true that there is a lot of uncertainty and most users prefer to have the money in the bank. Still money, however, is losing value. Specifically, if you had 10,000 euros saved, now it is equivalent to 9,000 euros.
That is why it is important to invest in financial products that help you fight inflation. If you look prepared, it is the best thing you can do to protect yourself from the fearsome inflation. They may be real estate products, index fund portfolios, gold, etc.
Housing and gold are two great refuge values par excellence. If you have liquidity “to spare” (remember to have savings for at least 6 months), you can consider it and you can make investments based on your capital.
The ideal is to diversify your portfolio And don’t put all your eggs in one basket. That is, dedicate small percentages to different plans; be it precious metals, cryptocurrencies, index funds, stocks, etc.
7. Do not allocate more than 30% of your income to paying debts
To stay stable during the crisis, it is important that you do not borrow more than 30% of your salary. That is, if you earn 2,000 euros, try not to get more than 600 euros in debt per month, counting mortgage, credits, etc. In the event that it is too late for it, you can always try to balance the balance by increasing your income or paying off some debts.
8. Try to save 20% of your salary
We are aware that life is two days and saving may not be attractive, especially since there are many things we can spend our money on; travel, brand clothing, technology products, etc. But it is important that you try to protect yourself from the next crisis by saving 20% of what you earn each month.
At we have already given you many tips to help you save. The Kakebo method is one of the favorites of our users, but there are also others that can work for you, such as the 50/20/30 rule. Take a look at them and follow your favorite method.
9. Compare prices
In the 2008 crisis, buying online was not as common as it is today. Today it is easier to compare prices and you have many more options to buy everything you need and at the best price. To do this, in times of crisis, always remember to see where the same thing is cheaper; a trick that will help you earn extra money every month.
10. Try to buy only what you need
In times of crisis, it is important be careful when letting go and not indulge in excessive whims that imply living from day to day. It is better to be a little more conservative and go more loose, since these are difficult times and it is better to be prepared with more savings than less, for what may happen.
We hope that these tips will help you protect yourself from a possible crisis! If you have doubts, remember that we can give you a cable 🙂
