How to survive in economic crisis?
Anyone can be kept awake at night by the prospect of being hit by a huge negative event that could damage their money.
When you face such as a job loss, illness, a vehicle accident — or a pandemic. However, if you’re well-prepared, the possibility of something costly and out of your control becomes less frightening. Here are ten steps to dealing with a financial crisis.
A monthly budget is necessary for keeping track of your financial situation.
Examine your bills to determine whether you’re wasting money you don’t have, and make sure you pay them on time.
Make paying off your credit card debt a priority, and hunt for cards with low interest rates.
Maintain everything from your car to your home.
To avoid costly difficulties down the line, return home to your health.
1. Make the Most of Your Liquid Savings
In a crisis, cash accounts such checking, savings, and money market accounts, as well as certificates of deposit (CDs) and short-term government investments, will be the most helpful. You should start with these resources since, unlike stocks, index funds, exchange-traded funds (ETFs), and other financial instruments in which you may have invested, their value does not fluctuate with market conditions.
This means you can take your money out at any time and not lose any money. With the exception of CDs, which normally require you to forfeit some of the interest you’ve earned when you take your money, you won’t suffer early withdrawal penalties or pay tax penalties when you remove your money, unlike retirement accounts.
if you close them early, you will be rewarded.