You will have heard about the alarm for a possible economic crisis, due in large part to the rise in inflation, the evolution of the labor market or the possible cut off in the gas supply to Germany, which could be crucial for the future of the economy. It seems increasingly clear that we are at the gates of a new economic crisis. The different events that the world has experienced in recent months have significantly changed the economic outlook.
However, now is not the time to panic, but rather to prepare for the uncertain future that will happen to us if this crisis occurs, and for this it is important that companies carry out contingency plans.
These contingency plans are a set of measures of an organizational, technical and human nature whose main purpose is the continuation of the business or establishing how to act when extraordinary situations occur and/or where there is some type of risk. The measures of the plans can be several types:
preventive
Aimed at reducing adverse effects
Aimed at restoring the situation to the state prior to the occurrence of the contingency
As we have commented, the arrival of a financial crisis is an event that can squander hopes about your personal finances, therefore, if proper planning is not carried out, it is very likely that your financial health will be diminished by the effects of a recession. . Of course, the reality is that measures can be taken beforehand so that there are no special economic problems when the global situation is adverse.
Below, you can see some possibilities that you can carry out to be prepared before the arrival of a financial crisis:
Reduce debts as much as possible. A clean-up of the accounts is key, in such a way that there is a minimum of leverage that provides room for maneuver if bad economic times come, since, in negative scenarios, banks usually close the financing tap. Navigating at a critical moment with extremely high indebtedness is not a positive thing, so what wealth advisors always recommend is that you pay off your debts as soon as possible and that you do not take on more loans. At least until the background scenario is clarified.
Prepare a budget. Elaboration can help you improve your personal finances. In addition, you can also create a savings plan if you have all your finances in order. We plan, in such a way, a better use of money.
Control your capital. This prior action will protect your finances in the face of a possible economic crisis, establishing control mechanisms over your money. That is, you have to know the money that comes in and goes out each month.
Reduce expenses to the maximum. On many occasions you spend more money than you owe on concepts that are absolutely dispensable. You have to visualize what you are allocating your assets to adjust your reduction capacity.
Creation of emergency fund. It is necessary to have an emergency fund that covers between 3 and 6 months of basic monthly expenses. You have to be methodical and do it from now on, to have room for action and thus rebuild your finances.
From the FEDA Investment Support Service, we have a specialized team that can carry out all this planning and prevention for what is to come. In addition, you will have our support and support at all times. If you want to get personalized advice, fill out this questionnaire.
