We can never predict what life holds for us! It’s a sort of mystery. Unexpected things happen at the most unexpected time! It’s our duty to be ready anytime for anything, be it good or bad and accept the fact, which makes it easier to live.
Here are few tips, to prepare you for an emergency crisis, anytime:
Keep more of Liquid savings:
This applies to everyone. Savings that can be liquidities soon should be your first option. The long-term saving that has 10 years and 15 years of locking period are your investments. You must have any savings, which can be easily liquidities into cash anytime. Imagine if you have to immediately pay the hospital bill, to get into, how will you arrange? Well, god-forbidden not, but we can never assure that nobody can fall sick one day! Or maybe you invested in a wrong place like the HBSwiss and lost money! The wise man gets prepared for it, rather than cribbing at its arrival.
Stick to a Budget:
Yes, to be on a safer note, you must stick to your budget, no matter what!! It’s not a harsh decision to make, but a wise habit to follow. Unless you stick to your budget and follow it, your cash and savings would never meet. Keep a record of your monthly earnings and monthly expenses, keeping aside your savings too. Do this for a continuous 3 months and see how your perception of savings, spending and earnings change and see the difference in you.
Minimise your monthly bills and expenses:
We don’t ask you to compromise on needs, basic essentials, but cut on those not so worthy expenses. Like example, we go to a mall, for purchasing a dress, but end up adding things like shoes, sandals, and other cosmetics, which you already have, and this adds up to the junk expense. You would actually like the colour of the sandal or bag and thus buy, but you are depriving yourself of the money that would actually grow in a year or 5!
Think logical and practical, do you really want those stuff, which take more space into your cabin and punch a hole in your pocket. Ys it might be just 300$ for a bag, 200$ for shoes and $100 for accessories, but take the count, overall $600 as your unnecessary expense, plus your dress. If you save this $600 each month, for say 3 years, you would get returns that can buy you a luxury item, or take you on an international holiday, once you save them wisely.