Sometimes, things do not go as well as we would like. Economic downturns are common in any family. Situations like being unemployed, a bad investment or suffer a major breakdown of the car can turn upside down a domestic economy. If solutions are not provided to this problem, the consequences can be dramatic and the economic slump may last longer than expected.
Luckily, you can survive these bad times. To achieve this, emotions have to be annulled, heads must be settled and economic techniques have been applied to drastically reduce household expenses. These are the fundamental steps you must take to get through an economic downturn.
Getting out of an economic slump is possible if you know how to do it
1º. Cold mind.
Leave fears aside and keep your head cool. A bad economic streak is not going to end your life ruined and with your family living under a bridge. Do not think about the worst that could happen. Leave the dramas for the movies and activate your wit. The time has come to leave the comfort zone and start doing new things.
2º. Calculate your financial independence.
The next step is to calculate what your financial independence is . Explained in a simple way, financial independence is the number of months you could survive with the savings you have , with zero income. To calculate it, you only have to divide what you have saved between your monthly expenses.
Nothing better than an example to understand it. If you have savings of 6,000 euros and on average each month you spend 1,000 euros, your financial independence is 6 months (6,000 / 1,000 = 6 months). Ideally, this period should be much higher. And if possible, more than a year, although this is something we can no longer influence.
3º. Make a war budget.
The time has come to put the scissors without any kind of contemplation. You have to prepare a war budget, that is, a budget that allows you to subsist for as long as possible, reducing expenses to its minimum expression.
For example, we must put an end to weekend leisure activities (or replace them with free entertainment), cancel the most unnecessary and unnecessary subscriptions (the gym, Netflix …), cancel the package of fiber + mobile + television and replace it with a cheaper one, etc …
Do not take it as a punishment. In an exceptional situation (your economic slump) you have to take exceptional measures (which are only temporary). How much more happy your expenses, before you will end this situation so unpleasant.
4th Look for extraordinary and urgent income.
Activate your ingenuity and make the light bulb in your brain light up. Think coldly, what do you know how to do better than anyone? Maybe you are very good at languages and you could earn some money by giving private classes online. Or maybe your thing is web design and you could offer to create a web page for some self-employed person who is starting his business.
Do not block yourself and think a bit because there are always formulas to earn extra money. Take care of kids? Take the neighborhood dogs for a walk? Do the purchase of the neighbors? If with activities of this type you can generate 150 euros extra per month, that which you take. It is in moments of need when the wit is most acute.
And most important of all, be clear that the economic slump will pass. But while it lasts, avoid going to a bank to borrow money, unless it is strictly necessary. If it’s just a specific emergency, at Vivus we can lend you a cable with our quick and free loans. Check them out and ask us any questions you have.