How to save money in times of crisis: Top 5 tips


It is difficult to save and save money during an economic crisis, but real

Banks, Loans and a Financial Pillow: How to Save Money During a Crisis

Today, the picture of the impending crisis is becoming more specific. It is already clear that coronovirus provoked changes that would change the global economy. Even the most developed countries are predicting recession and economic recession, and trade is falling under the watchful eye of financial regulators. No matter how long the recovery of the world economy takes, one must supply individual money, and all have to do with it.

A crisis is always difficult, especially if it is global. But with the right approach, it is realistic to minimize economic losses, while maintaining a portion of income is extremely important, even if the quantity is very small. According to the latest figures, 45% of Ukrainians were not fully prepared for the crisis situation, with many of them not even having a financial cushion in April. Many people prefer to buy a variety of services and goods, rather than accumulating part of the salary, which is fundamentally wrong.

The right approach to money is, first of all, to understand one’s own expenses. By compiling and calculating your personal cost of living (which includes paying bills, transportation, medicines, and a basic food package), you can get an idea of ​​the necessary financial pillow – multiplying the amount you get by four for this Will happen.

Banks, Loans and a Financial Pillow: How to Save Money During a Crisis

After calculating the volume of your airbag, you can cut costs to start accumulating. It is a necessary measure in times of crisis. Another question is how to save in unstable times.

1. Do not keep money in a bank. It is better to divide the available amount by at least two and distribute it to the most reliable institutions. In order not to be mistaken, it is important to pay attention to several indicators: bank’s reputation and rating, interest rates (high rates should alert you), and participation in the deposit guarantee system.

2. Do not buy currency. Especially when it is at the peak of the price. The economic crisis, even globally, is turning the currency into a volatile and suspiciously profitable attraction. Furthermore, it is a time of special excitement around any shopping and especially currency. Even to save money in various currencies, one cannot rely on their purchasing power, although it is a better way to keep the hryvnia under the mattress.

3. Do not buy equipment. Especially when it comes to home appliances and all the popular appliances that people rush to buy at the first sign of crisis. Many are guided by the desire to save money before the rate jump, but in fact, in 99 cases out of 100, technology becomes affordable over time and is a kind of black hole for your money.

4. Follow financial discipline. Shopping should be planned during a crisis, completely abandoning impulsive behavior. Financial discipline does not need to deprive itself of everything, it is not the ability to spend money. This is especially true for food and clothing.

5. Debt denied. Even legislation has been enacted that prohibits financial institutions from levying interest on quarantine and increases interest on loans for consumer needs. Taking a loan during a crisis is not the best solution, given the volatility of the market and economy. This is especially true of foreign currency loans, which can turn into a debt hole during a crisis.

During a crisis, as in any difficult situation, it is most important not to panic first. In matters of security of funds, hasty decisions and rush are the main enemies, by avoiding them, you can control the financial situation independently. And this is the first step in combating the effects of economic unrest.

Read: We optimize spending: Five ways to save money during quarantine.


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