We have all heard, experienced and shared instances of the last recession that affected the global economy. You remember it more because that year you did not get your much awaited and deserved yearly appraisal, or that promotion. It is something that you, now, share stories about with others. But you know how the uncertainty of the job, the months of missing salaries had made your life stressful. Apparently, recession or no recession, you still need to pay your bills, pay the rent, shell out to repay loans.
The last one you probably managed to survive, but will you be able to take on the challenge when the next one strikes back. No? Of course not! The world economy is volatile, and no one can predict when the bubble could burst.
Here are some noteworthy steps that you can possibly adopt to manage your money during the uncertain times.
Hold onto your cash
During these times, your emergency cash is what comes in handy. So always remember to stash up at least six months of living expenses while you are in an advantage situation. The plan is to keep doubling your savings, from six months to 12 months, then to 18month of living expenses, and so on so forth. The cash that you have stashed is what helps during the crisis.
Plan a long-term strategy for your cash
You seemed a lot happier when the prices of stocks were high and expected it go higher. Now, that they are behaving in just an opposite manner doesn’t mean all is gone. The rich won’t stress over markets downturn, although it would make them take charge to monitor their savings and investments and see they don’t lose it.
So, what tactics do they adopt to sustain? Here are some notable ways to keep your boat rowing smoothly in the rough weather:
- Observe the downfall of the market closely
- Investing in short-term bond funds
- Keep investing but smaller amounts in safer long sustaining stocks
- Don’t sell your shares until the markets improves.
- Converse with like-minded people who are in same shoes as you are. It will broaden up your thinking extensively, and you will be able to keep ruling the markets no matter how they volatile they are.
Money doesn’t buy Time, but Time Does
Even if the markets getting frothy, your instincts to make right moves for re-investing money will play the trick during arduous times. You should be confident in whatever decisions you take to keep the grass growing. That’s what the millionaires always do.
Monitoring Wealth is Important
Stash your wealth whichever way, you think is suitable, but keep your eyes on it at all times. Keep track of all the investments so that you are aware of the slightest fluctuations in the market. It will also help you in maintaining budgets for future expenses and investments.
‘Money comes to those who have faith in themselves.’ So, restructure your financial portfolio, harmonize with the market’s ups and downs and never give up on your dreams to achieve your financial goals. Rise, awake and stop not until the goal is reached.
“Don’t stay in bed, unless you can make money in bed.” – George Burns
