BEST TIPS ON HOW TO AVOID FINANCIAL CRISIS
Guidelines On How To Avoid Financial Crisis
The global financial crisis was a period of general economic stagnation and reduced business investment, starting in the United States in 2007 and spreading to other countries. The crisis has caused the total cost of the crisis to exceed $25 trillion as of 2018, with the global unemployment rate standing at about 10%.
Financial crisis is also any of a board variety of situations in which some financial assets suddenly lose a large part of their normal value.
Effects OF FINANCIAL CRISIS;
Increased asymmetric information
Reduces the amount of funds channeled from investors to entrepreneurs
Straved of external finance
Business cut back production
Decreasing aggregate economic activity
Initiation of financial crisis
Here Are The Best Tips To Avoid Financial Crisis
Maximize your liquid savings.
Make a budget.
Minimize your monthly bills.
Closely manage your bills.
Pay down credit card debt.
Get a better credit card deal.
Earn extra cash.
Keep up with routine maintenance.
Maximize your liquid savings
Cash accounts like checking, savings and money market accounts are very important, knowing how use them is essential. You will want to turn these resources first because their value doesn’t fluctuate with market conditions, unlike Stocks.
Make a budget
In a case whereby you do not know how much money is coming in and going out each month, one day you will be in a situation that requires money and because you do not know how much money your spending to tend to over spend.Budget helps save money and with a budget plan, there is a possibility of you having extra cash to spend when it comes to emergencies.
Minimize your monthly bills
Minimizing your bills is important. Knowing how much money you make is also important but knowing how to spend it is very important.Minimizing will help reduce the money you spend leaving you will extra cash in your pocket.
Closely manage your bills
Managing your bills is essential. If it is not managed well, you will be left with debits. Know the things you need at that moment and things you will need later once you master this, you will understand the need to manage what you have.
Pay down credit card debit
If you have credit card debit, the interest charges you are paying every month takes up a huge portion of your monthly budget.If you make it a habit to pay down credit card debit, you will reduce your monthly financial obligations and in the process, you are making it easy for yourself, that is you can face the more important things.
Get a better credit card deal
If currently you are carrying a balance, transfer it to another card with a lower rate. Paying less interest means that you can pay off your total debt faster and gain a breathing room in your monthly budget.
Earn extra cash
Find a way to a earn extra cash so as to support your monthly budget. That extra cash can go a long way, especially if your earning less in your work or the pay is low.
Keep up with your routine maintenance
That is follow up with your maintenance routine that is car maintenance and home maintenance. Always keep them in a good condition, they are small and avoid expensive repairs and medical bills later.
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