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Financial planning: Just as Elon Musk took over Twitter he fired almost half of the staff of the company, both local and overseas. Subsequently, other big names like Meta and Amazon followed the suit. Now, as there are unofficial reports about impending recession and job cuts, one has to be prepared just in case it stares into our faces. We got to be prepared for any eventuality, just in case! So, we share with you a few tips on how to plan and strategize finances. The purpose is not to scare you but rather to prepare you so that you don’t find yourself wanting.
So here we go:
We prepare monthly budgets even during the usual times. But it is a different budget that we are talking about. Here you have to be frugal. Don’t spend money on stuff that you don’t want or that is not a necessity. Keep your money safe for only the necessary things.
It’s an extension of the previous one and here we explain it a bit. You don’t have to keep up with your regular outings and excursions. Unless absolutely necessary, avoid outside food, both online and offline. Movies, theatre, and stage shows, etc. can be enjoyed later when things improve.
Same thing here. Shop only what is absolutely necessary and try to do it with what you already have. The things you see on the teleshopping networks can wait. So, keep your urges under control, and the same thing for the family, including kids. Don’t fall for tantrums and emotional atyachar.
Private jet, space trip, oh, just kidding. By big products, we mean TV sets, phones, cars, bikes, refrigerators, microwaves, and anything whose price is on the higher side. If you can arrange these under the budget, then it’s ok. But still, try to hold your horses till the time is conducive to letting them loose.
It is self-explanatory. Use the emergency fund for only emergency purposes like god forbids an illness, injury, etc. An ideal duration could be from six months to a year. But it is always better to go for the long run. Use your acumen and circumstances.
If you are planning for either, drop the idea. You might get some amount to last for a few days but you have to return it with interest which is going to tighten you further. Same with using credit cards. The bottom line here is not to spend a single extra penny on loans and interest.
These are a few broader points to deliberate. And of course, you are the best person to plan according to your needs and financial condition. There is some good stuff to learn about money management from your friends, colleagues, and acquaintances.
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