How to survive a Financial Crisis

Financial problems are detrimental to both the economy and the small business industry. Most countries have experienced the wrath of the "global economic depression," and that's why governments are trying to find ways and strategies to combat this economic downtrend.

For the most part, let's talk about how an ordinary person can avoid suffering from the effect of this global crisis.

Here are some effective and time-tested ways to avoid a financial crisis:

1. SAVE your money - It is easier said than done, and it takes a lot of self-constraint. But we all have to be practical and wise at times like this, and it is better to have some cash stashed for economic downtimes.  If you're working, at least save a bit of money from your monthly paycheck and deposit it in the bank.

2. Try using PUBLIC TRANSPORT - Gas prices are fluctuating right now, and this idea probably crossed your mind at one point. If you plan to buy a car, opt for one that is fuel-efficient. It would also do you good to consider walking over short distances. That would be good for your health and the environment – it’s just like hitting two birds with one stone.

3. Focus on buying NECESSITIES – This is where being practically hits hardest. Just buy necessities that you are constantly in need of, like a carton of milk, bread, eggs etc, and if possible buy that in bulk.

4. Educate your family about the economic crisis and how they can help ease financial burdens - This can be fun, and you can be surprised by your children’s reaction. It would be like a team effort.

5. Learn to simplify your life - Cut or reduce the use of credit cards, if you have any. Credit cards can tempt you to buy things you do not need, and even one can drain your income.

6.  Educate your children about the value of money - Inculcating good values in children at an early age can help them practice good financial management when they get older.

There is no reason for anyone to suffer financial problems. But in the face of the economic crisis, it's high time to become wiser in making financial decisions. These are just some ways to avoid falling into a financial crisis. Terry Powell, IFA, CFE Founder and CEO of FranchisEsource Brands International, has a lot of ideas regarding financial management. He is one of the experts in economic and financial control, and his ideas can be beneficial for small business owners out there.