7 Golden Tips to Help You Survive Any Economic Crisis

Published on: Mon, Jul 13, 2009

Classified as: Credit Repair, Debt Consolidation, Loans, Personal Finance, Tips & Advice

The recent economic crisis may be the worst time for many of us, but it may be an opportunity for us to look back at history and learn how the previous generations have dealt with such situations and apply the same rules.

The current downfall may be exactly like the Great Depression that occurred long time back and thus taking some tips from the grandparents or great grandparents that went through it, we can gain perspective on our own situations and make things better. Here are some of the steps to help us fight in this time of crisis. seven golden tips

The 7 Golden Tips of Survival

1. Quit going on credit.

One of the first lessons learned by people who survived the Great Depression was to never borrow money unless you have a clear plan for how you’re going to pay it back. And when layoffs are a reality, expecting to pay for it with your Christmas bonus or your next paycheck is not a sound plan.

If you don’t have the cash to make a purchase, then don’t buy it. If you have credit cards, make sure to pay the balance off every month. If you can’t pay off the balance, then cut up the credit card(s) and work on paying down what you owe.

2. Build good relationships with family and friends.

Be honest with your family and friends about your financial difficulties. They will see you through difficult times. Try to find out ways to help each other and discover new ways to barter. Families that stick together in difficult times develop stronger bonding by cherishing the simple pleasures of life.

Having fun doesn’t necessarily mean spending a lot. People still had fun during the Great Depression. Teenagers had dance competitions; people played monopoly, did puzzles, read books and listened to the radio. It did take some effort but they had fun without hanging out at the mall and so can you. Talk to you children about the financial crisis and get the adult kids to put in their share. This way the whole family will feel connected and the hard times won’t be so difficult to pass.

3. Do it yourself.

Learn to fix and maintain everything you use in your home. When you’re short of money you basically don’t have a choice. Either you do it yourself or it does not get done. There are many things that you can do yourself and save huge amounts of money, such as:

Learn to sew. This way you can mend your clothes, stitch new ones and recycle old clothes into new handy things
Learn to fix broken things in your home
Try to barter. Fix something for your neighbor and in return the neighbor can do a job for you.

4. See frugality as a virtue.

A frugal person makes the most of what they have; a cheap person is just focused on not spending money. During the Great Depression, frugality was seen as a positive trait. During hard times, it’ll help you get by, but when things get better, maintaining those habits will help you build wealth.

5. Treat food with respect.

When you through really tough times, you will learn to appreciate the food on your table. Make a resolution to never waste any food. Try to make food from the scratch. Try to grow your own food, keep livestock, gather wild edibles, and whatever it is that you have for food, never throw it in the garbage unless there’s a very good reason to do so.

Learn to cook yourself and try to make up with whatever’s around. Buy preserved (canned, dried, etc.) foods in bulk whenever the cost is lower than buying a smaller size. Avoid buying ‘convenience’ foods as they are expensive and less healthy. Instead you can save a lot by cooking your own food instead of ordering a home delivery or take away.

6. Reuse.

Try to reuse every possible thing your have. Get the children involved and think twice before throwing anything out. Try to utilize your old clothes, tins, shower curtains, socks whatever you think can be reused in some other way and do it.

7. Be thankful.

Be thankful for what you have and be optimistic. As one Great Depression survivor said, “I never thought a cloud was so dark that I couldn’t find a silver lining” (Betty Davison).