Facing Economic Depression

Facing an economic crisis needs a lot of mental preparation and emotional strength.  Here are some tips that will help you face an economic crisis.  Though you may develop the fortitude to face financial loss, it is prudent to take steps to minimize the adverse consequences.

Ensure an Income

If you already hold a job then look for opportunities that will make you stand out as sincere and persevering by

1. Showing willingness for a transfer to places that are not sought after but need manpower

2. Completing assignments on time and doing them well

3. Opt for overtime  hours to earn more

If you are running your own business then

1. Reduce costs of production when the sales start falling

2. Analyze the cost of running your business with great care to see where the cuts can take place.

3. Look into options for starting an ancillary unit that is low cost and low risk

Frugal Measures

Identify all aspects of expenditure that can be safely be done without, like going to the movies, eating out, and so on.  Luxury items (like a yacht or an extra car) that you may have invested in earlier can be disposed of off now to help you face the financial crunch better.  Make a list of all household expenditures and look for ways to cut down especially those that may be impossible to cut down later.

Avoid stocking food. Buy just what you need for the next few days/weeks.  This helps cut down the grocery bill satisfactorily.

If you live in rented accommodation, move to one that costs less.  If you have more than one car dispose of one of them.  When you want to buy another car then buy a used one rather than a brand new car.

Job Security

If you feel that the present job may not be secure enough, explore the job market for suitable work, in the face of losing the present job.  Keep ready a few options for the same.  Try and earn some extra money by taking music and academic tuitions, taking up job typing assignments, or offering to do odd jobs in the neighborhood.

Safety in Saving

Whatever your income, develop the excellent habit of saving money for a really rainy day rather than for a holiday or for a luxury trip.  Always bear in mind how much money you really have and spend accordingly.  Consider the credit card as a big challenge.   Take care not to overspend with it.  To manage this problem, develop the practice of paying by cash or check rather than by a credit card.

Awareness

In order to successfully face a declining economic situation, you have to be aware of the impending crisis so that you can plan for it in advance and manage it better.  Bear in mind to save whenever possible and cut down unnecessary expenditure and wastage.  You can also consult family members for inputs on how to face the economic challenge with equanimity.

Economic depression brings in a lot of mental stress to all.  Being aware of its existence and planning ahead for facing the depression with equanimity, is important.  There are several ways you can fight the crisis by managing your finances and life.  Saving money and avoiding wastage go a long way to help cut down expenditure.