Overcoming Financial Crisis

Financial crisis is a stage in which you sometimes find yourself passing through. A stage in which you experience financial difficulties and have to live lower than your standards. Financial crisis can be caused by unexpected events but in most cases it is due to ignorance. Failing to do what needs to be done at the expected time can result to financial crisis.

Fortunately, passing through financial crisis is not the end of the road for you (Read 3 tips for dealing with trials in life). Financial crisis can be overcome by sincerely applying the principles below.

Management

Poor management  is usually the cause of most financial crisis most times. People complain about how insufficient their income is. They say it is insufficient to cater for their needs. When crisis comes their way, they are not prepared and get into financial crisis.

Manage the resources you have. Even if it looks small, mange it. It is proper management that leads to increase. No matter the income you earn, develop the habit of saving part of it. Even in crisis, you must still save. Saving gives you leverage and also affects you mentally by giving you confidence when carrying out your transactions. You must learn to prepare for war in the time of peace by saving. The main reason you might not have been saving is because you can't differentiate your needs from your wants. Spend sometime thinking before making purchases. Don't just pile them up in the store or warehouse.

Flexibility

You might have been using a strategy that previously worked but is not more working; why not change your approach. Trends come and go with time. It is up to you to adjust to the new trend by changing your strategy. You might have made money in the past using "strategy A'' and now your are loosing money. Why not try "strategy B".

Take a look back at some of your favorite companies that have closed their business. What do you think caused most of them to close-up? The main reason is due to their inflexibility. They failed to change their strategy while others adventurously changed theirs.

Financial Mentor

They say a problem shared is a problem half solved. Do I believe? Yes I do.  But I believe a problem shared with the right person is a problem half solved.

Due to pride people don't like sharing their problems with others. They think about what the person will say. Am not saying it is bad because if some certain people actually know you are having a financial crisis, it can damage your reputation especially if you run a company. This is when a financial mentor comes in. You should have a financial mentor, someone who you have previously reviewed and has been through similar situation in the past. They can give you insights on things you are not aware of. Along the way you can discover how to solve the crisis and how to prevent it from future happenings.

People

Never underestimate anybody. You can never know if the person next to you is the solution. Because the person next to you doesn't drive the latest car or live in the best place in town doesn't mean that they don't deserve to be heard or to be respected.

You might say that the reason you are in this crisis is because you trusted someone. That doesn't mean you shouldn't trust again. It is through someone you will get out. Crisis come to test us. It is up to us to pass or fail the test. You can never grow beyond your pain capacity (Read Leadership Capacity- Grow it).

Your Turn

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