How To Survive Financially
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The economic slowdown has demonstrated just how important it is to be prepared financially.
We all try and tighten our belts when times get harder financially. Sometimes we take on financial committments when times are good without giving considered thought to the distinct possibility that times may change for the worse, putting us under severe financial strain. If we took the time to think ahead however, there are things we can do in the good times, that help in the bad times.
It's easy to get carried away when times are good, but the problem is that we don't consider the possibility that our finacial situation may change for the worse. Peer pressure does not help, many of us like to give the impression to our friends that we are well off; a facade that is difficult to maintain when the icy wind of change starts to blow.
Whilst we like to give others the impression that we are doing well, we cannot kid ourselvs forever. Rather than live on a finacial knife edge, it is sometimes preferable to be prudent if only for peace of mind.
There is a simple rule of thumb that states that if you have six months salary saved in the bank, this gives you enough of a "bridge" to survive should disaster strike in the form of redundancy. Also, if you have money in the bank, the bank is more likely to look favorably on you should you need to borrow money, and given that they are so tight with their lending these days, this is all the m ore reason as to why you should save this money.
Saving money is not something that many people like to do, as the temptation to spend it on the latest gadget or going out clubbing is strong, and at least we have had something to "show" for it, rather than just stashing it away. Even if we do save, when we see a sizeable sum in our savings account there is the temptation not just to spend it all, but also to overspend a little here and there, and by doing this, erode the amount we hold in the bank.
Mental attitude is often what prevents us adopting a safety first approach, in many things in life. However, this can be most common in our attitudes to saving, we see it as something negative, something that when done, has decreased our amount of disposable cash, and is therfore stopping us doing those things we want to do. Particularly in todays "must have" society, the word is spending, not saving. However, with a little bit of mental adjustment this perception can change. Focus on seeing saving as something that provides security. For example, imagine what it would be like to be a street sleeper. Treat saving as a way to avoid that situation. Associate cosy images in your mind with saving - it doesn't happen overnight, but with practice you will find your perception changes.
This way you can develop a powerful mental attitude that will begin to make you see the benefits of budgeting and saving in a new light, one of peace and security, as opposed to some sort of restriction on your life.
Article Source: Articlelogy.com
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