Economic recession seems under control but, not steady as expected. Governments working hard to identify and provide right solutions to stabilize their economies. But, results of the recession was painful. Recession left the public life all over the world miserable due to growing unemployment and related situations. Investors around the world have lost considerable investment from stock market crashes due to panic. Companies filed bankruptcy and thus put employees as well as customers in panic. Present economic recession teaching us an important requirements of valuating our professional and personal life before and after recessions, to take required actions to meet any similar situations. In this context, a focused study about our life after recession and some tips to fulfill the safety requirements, have enough importance to prepare our self to meet any such situations confidently.
1. Professional life solutions to meet dangerous situations like above.
We have heard number of suicide news on daily basis in the newspapers due to personal financial crises. Instead of just read and leave such, one should turn to their own life to valuate self to know how safe he is, to meet such burdens. I have found such incidents happened due to job lose or debt related issues. These findings pointing to the requirements of securing our job. Here are some tested, well advised tips:
– Develop your contacts to the next level. Build a network of right people who may able to help you to find a job at the earliest, once if you lose your job.
– Enlighten your skills. Learn new skills as a backup to your core skills. This will make you able to search job with multiple sectors at a time, than your core focused area. This idea work better to get a job as early as possible to engage yourself and give enough time to find a right job.
-Always refresh your core skills. Not only for the recession time but, doing such will improve your value to your employer.
– Identify a possible second income stream – Finding a second income stream to add with your main income help you to have enough money to meet emergencies. As a best example, most of the famous personal finance bloggers have full time job but, blogging is their source to get a second income.- Be an employer favorite employee always. Work hard and meet the goals in time. Produce results little more than what your employer is expecting. This will secure your job to a great extend.
2. Personal and family life solutions to meet financial burdens
Family life and responsibilites force a person to take enough precautions to protect from possible financial crises happening from various situations. Below are some best tips for families to secure their financial position from any affecting situations like economic recessions:- Have proper budget. To do this, a person must identify the cost of living. Budgeting have important role to any family to understand the inflow and outflow of money in each month. Once you are feel good with your exact money requirements for a month, you can easily draw a plan for your finance.- Identifying the areas where you required unexpected cash requirements: Illness to self, parents and kids, deprecations of any items in your house and machineries, fire and burglary related loses are some, falling to this category. If you are well aware about such, you can draw your plan for insurance protections to meet such situations and thus secure your finance to a great extend.
– Building of an emergency fund – Creation of an emergency fund is a must for families and the right solution to meet all the unexpected money requirements happening from issues like losing lobs. Emergency fund creation and budgeting have direct relations. One who NOT aware about the exact money requirement of a family, will not be able to create a well working emergency fund.
3. Thoughts to protect your Investments from huge loses.
Present economic recession teach us the requirement of having a well planned investment strategy to protect from possible, immediate loses. Below are some best ideas to go with fail proof investments.
– Investing to well diversified companies, that meet all the value investing criterias, would be your best option when selecting direct stock to invest. Identifying and investing on eminent companies which have monopolistic positions in the market and ability to survive any situations like economic recessions, are your best friend for investments.- Diversifying your investment is the best solution to beat recessions or simila situations. For an example, at the peack of present economic recession, gold prices was going up steadly and those who have invested on gold, received handsome income. If you had planned your investment through a well qualified investment counselor, you would have benefited from such.- Creating investment portfolio with right mix of well secure debt instruments, is a must to survive with such situations. Park a right percentage of your money to govt secured instruments such as bank FD’s etc are the best solutions for this.In the best of my thoughts, professional life, family finance and investing are the major three areas of a person, probably affecting badly by factors like economic recessions. We have experienced the same now and which must lead us to the requirements of having right strategy to build a plan to protect us from any similar situations in the future. Above are some of the possible tips but not limited to.Your thoughts on this article are most welcome. Feel free to share your thoughts by commenting to this articles. If you have any queries on this article, also feel free to inform me.