Five Secrets to Coping With the Global Financial Crisis

I want to share some thoughts on how we can all survive and in fact thrive during the current global financial crisis or any other financial crisis that may come your way.

First Secret - Know how much you are earning and spending each month

Write down everything you earn, including wages, bonuses, interest and dividend income and rental income if you have an investment property, so that you know precisely how much is coming into your bank account each month.Like a company, this is your total revenue and if you are to survive and thrive you need to be able to live within this income. If not, consider enhancing your income with a home business - there are lots of ways you can earn additional income from home.

Now write down everything you spend during the course of one pay period, be that a week, fortnight or month. Best to do this over a month, so that you pick up less regular expenses. Expenses that you pay quarterly, such as electricity and gas should be divided by 3, and added to your other monthly expenses. Don't forget the insurance on your car, home and contents and on your life, if you have these items covered. You can't take control until you know where you are spending your money.

Second Secret - Set yourself a financial goal

Set yourself at least one financial goal. Big or small, having clear goals will help you decide what's important and give you an incentive. For example, you want to ensure that each month you will spend less than the total household salaries, so that any other income is seen as a buffer.

Third Secret - Develop a budget

Create your budget.

Hmm, you say, that is just too hard. Well, I say, it is critical if you want to take control of your finances and become financially free. How much do you need for your essential living expenses? How much can you set aside as savings and to pay debts? Do you want to invest for the longer term? Do you have a special project you are saving for? Can you allow yourself some 'play' money for longer term investments? Write this all down.

Fourth Secret - Create an Emergency Fund

Set aside a modest 'emergency' fund to pay for any unforeseen expenses. this should be about 3 months salary. If you can't do this immediately, set up a separate savings account to build up your emergency fund over the next 6 months or so. Don't touch this money for any reason. You will sleep better in tough times knowing you have this buffer fund available.

Fifth Secret - Reality Check

Take a reality check. Can you follow the budget without struggling? Is there an area where you can cut back, or save money by for example, buying in bulk?

Article Source: http://EzineArticles.com/?expert=Stuart_Fish

Never Let Money Be an Issue - Financial Crisis and Your Marriage

No matter how financially ready or thrifty you are, it's impossible not to be affected by the on going financial crisis. Nobody is spared from the tremendous outcome of the financial crisis. You never thought that even the most stable businesses could go bankrupt and lay out some employees. If a member of your family is one of the unfortunate employees who got laid off from their job; then you and your family are heading for a monetary crunch. The domino effect of the financial crisis can be quite devastating. It can totally change your life or even break your marriage apart.

On the other hand, financial crisis can be a stepping stone for you and your marriage's growth and maturity. To be able to survive economic struggle your family should work as a team. Being a team means working together in one direction towards a goal. That goal should be specific and attainable. An example of a specific and attainable goal is to save three hundred dollars in a month for emergency money. In order to attain that goal, you should have realistic plans. A realistic plan is cutting back on gas expenses by car pooling or buying groceries twice a month.

One important matter in order to survive financial crisis is to prioritize. Prioritizing will aid you from over spending your money in unnecessary stuff. To be able to do this, all members of your family should discus and make a "needs and wants list". It is a two column list made up of your needs and wants. The "needs" column should be the things you can't do without like food and toiletries. The "wants" column should be the stuff you can do without like perfume or Louise Vuitton bags. Making this list is all about compromising. Compromising is an essential factor in surviving a financial crisis.

Other vital concerns in surviving financial crisis is to ask for manageable payments of your monetary obligations in the banks or credit card companies. Requesting for a moratorium of your loans will protect you from adverse consequences of loan foreclosures. Another way to survive financial crisis is rising above the problem. Avoid blaming each other or yourself. It's difficult to work together if both of you blame each other for a situation you never wanted to be in. Keep in mind that this is nobody's fault. Believe me, pointing a finger at each other will get you nowhere and will only aggravate your situation.

It is imperative that you not only conserve in monetary funds but also your energy. Brainstorming for the right solution can be exhausting therefore focus your mental and physical energy on practical matters. Deal with the current problem constructively. Losing money doesn't mean you're a lesser person. Learn from your mistakes and focus on self improvement can make you decide better for solutions. Your economic struggle is already a major problem to tackle. The least you need is another health or emotional issue to take care of. For that reason taking care of yourself and each other is of the essence.

Your survival- in all aspect depends on how you view and interpret your predicament. If you always view your adversities as an opportunity for growth; then most likely you and your partner will be able to survive the problem and save your marriage all at the same time.

Article Source: http://EzineArticles.com/?expert=Ruth_Purple