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Prepare for Economic Downturn

It’s been years since the market crash happened in Jan 2008. After it ended the positive news kept airing and there is a sign of hope. The updates of increasing stocks rate being told again and again. It’s not a secret that most consumers are feeling relieve with the latest updates and some people back to their old habit of spending money without planning.

And who knows – in a mean of time, suddenly the market has crashed again and we have to face the economic downturn again. Most of our savings could be pulled down and we have to cut the budget. For people who has prepared with the emergency fund, they can maintain their daily lifestyle as they got backup but it will be a terrible nightmare for those who never prepare for the downturn. Some of them might have to do extra jobs for money as they never prepare however they have to feel grateful if they get the job – it’s better than nothing!

The slowing economy which began with the collapse of the market price and deals, result in things get worse before we are able to think how to solve them. If the gross domestic product decreases for two or more consecutive quarters, we will have to face the recession, the budget have to be cut and we have to forget about living in a prosperous life for a while – or even at all. These budget-cutting absolutely is never interesting and it could change your life into the terrible one if you can’t handle it rationally.

I meet some people who hate to talk or think about the bad things such as economic downturn, poverty and recession as they say it could be a way to become pessimistic. However I don’t agree with this opinion as always prepare for the future is a wise act to do and when the time comes, that is not the time to feel regret. So thinking of the future is an essential step in maintaining your financial management in all time.

So what should we do now? The best thing is to make saving money as a habit. Try to save enough money to cover about 3-6 months of your expenses. Losing your job is possible in this era so get prepare for that. Sit, think and consider all of the things that could change in your life when something terrible such as downturn and recession happens. Predict the results on your finance and plan what you want to do, now and when the time comes. The next thing is to implement your plan according to what you had decided.

Cut your spending now and start saving some money – you could avoid feeling regret in the future!

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Filed Under: Personal

A big part of financial freedom is having your heart and mind free from worry about the what-ifs of life.
15 comments… add one
  • philippine business 17 July 2010, 9:10 am

    It is too early to say that the global recession is now past behind us. One economic think thank of the New York Times argued that the second wave of economic downturn is yet to come. The forecast may shatter the hope of those who are optimistic of this year’s economic health. Be that as it may, we should continue to strive to be more productive citizens of our respective countries.

    Reply
    • Nasrul Hanis 17 August 2010, 3:19 pm

      Yeah, we should prepare before it’s too late to feel regret.

      Reply
  • meble apteczne 22 July 2010, 4:22 pm

    Very good point of view; thanks for sharing your thoughts

    Reply
  • Wills 25 July 2010, 9:49 pm

    I think the bank stress tests will be a good indicator of whether we are on the mend. With interest rates at such low levels and inflation rising, there is little incentive to save.

    Reply
    • Nasrul Hanis 17 August 2010, 3:21 pm

      Yes, the indicator can give us the clear information about what situation we’re facing now. So we know what we should do and how much we should save.

      Reply
  • Business Ideas 29 July 2010, 12:48 pm

    Good article, its good to get reminded to watch your finances. Its easy to forget how volatile the economy is at the moment.

    Reply
  • false alarms 12 August 2010, 11:24 pm

    it is a important part of any business after getting a stage the business going to come down. so we have to be prepare for such a condition…

    Reply
  • Small Businesses News 14 August 2010, 10:02 am

    I agree with saving religiously. Nowadays anything could happen and having an emergency fund is a must especially if you have kids that needs financial support.

    Reply
    • Nasrul Hanis 17 August 2010, 3:25 pm

      Yes, you’re right and talking about kids, I think they should be approached with financial education earlier so it’s easier for them to prepare for the financial situation in the future.

      Reply
  • investment banking 19 August 2010, 6:30 am

    thanks for sharing this knowledgeable stuff

    Reply
  • investment banking 29 August 2010, 2:42 am

    great post thanks for sharing,With interest rates at such low levels and inflation rising, there is little incentive to save.

    Reply
  • Website Design 1 September 2010, 7:41 pm

    Thanks for the information provided. I find it really useful and worth reading!

    Reply
  • Market Researcher 4 September 2010, 1:13 am

    economic downturn means when any bussiness come down and inflation rising .

    Reply
  • Spousal Visa 15 October 2010, 2:51 am

    wow….! Very nice and informative article. Your way of explanation is beautiful. I learn a lot of things from your article. The stuff you are using that is very useful and helpful. Thanks for sharing a very informative article. Keep writing.

    Reply
  • neilly 22 November 2010, 10:04 pm

    even though i do not totally agree with you on many of your views, i did like reading this, many thanks

    Reply

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