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How To Stay Calm in a Financial Crisis

I know that I’ve said it before and by now many people are probably tired of me alluding to the global financial crisis. But last week at a pension planning seminar at work, we were reminded that 2012 is going to be very tough in the business environment and things will probably be like that or worse for another two or three years.

My first thought was to freak out silently on the inside and I could feel my stomach churning. My second thought was to have a good cry – instead of keeping it inside, I should let it out. It’s not a good feeling being told that things will be tough, when you know that you’re in a tight financial position where you can’t do much to make things better. What should you do?

  1. “Panic is not the answer, having a plan is.” – A little while ago, I wrote about some tips that I received from Valerie Coleman Morris at a seminar held in Barbados. This particular quote is extremely beneficial especially in a case like this. What you should do is to sit down and create a plan of what you are going to do.
  2. Don’t let your emotions get the better of you – This is the hardest thing to do especially if you’ve already started to panic. Feelings of depression, anger, hopelessness and failure can consume you and convince you that you are doing something wrong. Instead, use the situation as a motivator to push harder towards achieving your goals.
  3. Do something about it now- Whether it means cutting back even more or finding a second job, do not wait until you are in a horrible position to do something. This could be as simple as adding a couple dollars to your emergency fund every month or making the decision to take the bus to work to save on gas money.

There will always be ups and downs in the financial world. The idea is to be prepared. When things are good, you can enjoy your money, but also plan and save for a rainy day. When things go bad, at least you will have something to fall back on.