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In bad times, the strongest survives. Financial crisis requires a mobilization of intellectual resources
At this time when financial and economic crisis unfolds at full capacity, you can not stay aside, but you must try to formulate a strategy for conducting and managing your finances and strictly follow it, not yielding to panic and to the majority moods. You should fight for your financial savings and act more vigorously.
On the other hand do not fall into panic and despair in case of a failure. Forget for a time about little things and make an effort to think more scale, it is pointless to worry about received percents less if you will decide, that deposit agreement with a problem bank should be annulled, but in the meantime you shouldn’t rashly sell the actions purchased before for a song.
Do not set yourself a goal to earn money, instead of it you’d better plan how you can save your finances or at least minimize losses and get an experience out of it that will help you in future. In this case it is recommended to keep up with the professionals of financial market, to analyze exchange and macroeconomic information and political news.
Try to analyze not a short-term situation, because in such moments the fluctuations of the market can be substantial during the short interval of time and they can be caused by a number of reasons. Use more long-term intervals for an analysis. The main thing to remember is that crises in history of humanity repeat themselves with a certain order and usually after a crisis an economy begins getting up again.
In such situations it is necessary to just wait and see and to develop the most conservative financial strategy for you. Discussing the problem of crisis with acquaintances and relatives, you can listen to their opinion, but you mustn’t blindly trust such judgments, because these opinions are not professional, be aware of rumors. During a crisis, more than ever, there is a mass of different rumors and speculations, allowing speculators to get large sums of money on panic and misunderstanding of situation by ordinary citizens.
There are some advices which as it seems to us, can help in crisis time:
- You need to remember, that crises do not end after one month, and if a fund market collapses, it means that soon a deceleration will take place in all economy, because a stock exchange is a first-ever indicator of comings problems, because the stock exchange has high liquidity and many professional financiers which estimate profitability of companies and their cost in the future. At the first signs of deceleration of economy, analysts count indexes and lower recommendations right away.
- Concentrate on maintenance of assets, but not on a possibility to earn money, because better times will definitely come, and you shouldn’t hurry.
- If you want to get rid of anxiety you should provide yourself with the greater supply of available funds, than usually.
- Do not forget about diversification so you should balance your financial portfolio and it is also reasonable to distribute risks evenly in the portfolio, for example, to distribute money funds between two-three banks, possibly, also using few currencies. We will repeat once again, in such moment it is not reasonable to earn money and instead it is necessary to think how to save own assets and not to try to get an advantage on the exchange rate or get higher percent on a deposit, do not forget that the basic law of correlation of risk and profitableness in such time will add an additional risk to the loss of your financial assets not bringing an additional benefit.
- It is necessary to plan own budget more weighted and to avoid large expenses, until the situation settles down.
- Try not to use credit resources, if there is possibility to decrease credits, it needs to be done, because probability of presentation of requirement on a credit before the appointed time from a bank increases and in this situation you’ll have to sell immediately the purchased assets at the minimum price or take to an account increasing of interest rates.
- It is necessary to watch TV news, including international, but in this case give preference to large competent companies and TV channels.
- It is necessary to visit your bank and to size up a situation, whether changing of employees did not happen, or working hours did not change.
- It is useful also to track basic economic indicators more attentively, such as exchange rates, interest rates, indexes of leading exchanges of the world, statistical information on growth of GDP.
- Improve your diligence at work, be more self-disciplined and try not to be late, because the percent of unemployment will rise in the conditions of aggravating of economic crisis, and an employee, who is more high-qualified, has more chances to stay in a company.
One shouldn’t forget that crises in a world economy happen with certain regularity and it is an appropriate process of development of society, therefore in such times, the person who shows carefulness and attentiveness acquires invaluable experience and has all chances for the further increase of his capital in the future.
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