5 Tips to Avoid Financial Meltdown
In a few articles I've recently mentioned that now is the time to take you finances to "Defcon 4". What I really mean by this is that people are facing financial difficulties must be prepared to shave off all the fat from their life in order to return leaner and fitter when the economy gets back into gear. Here is how I would react if I felt that my family's finances were heading fro choppy waters.
Sell all possessions that aren't nailed down - after reading "Your money or your life" I realised that I had been hoarding useless junk for the best part of a decade. When I realised that I had no use for any of this "stuff" I began to list them on EBay and, predominantly, Amazon. Over the course of a year I have raised 500+ with no detriment at all to my lifestyle.
Take on a second job - when the going gets tough, the tough get a second job. There are numerous places which are always looking for part time staff no matter what the nationwide financial climate. I'm talking about bars, restaurants, supermarkets, cinemas, bingo halls, department stores, fast food outlets etc. By paying attention to your local classifieds you'll soon come across an opportunity. 8 hours a week at minimum wage may not sound much, but it is an extra 2000 a year towards household bills.
Sell your car - Britain is currently littered with cars left near busy junctions displaying "For Sale" notices. This is because many people have come to realise that a big car is now a millstone more than a status symbol. By either selling your car and either going without or downsizing to a cheap run-around it could be possible to free up thousands as well as enjoying the ongoing benefits of no longer worrying about road tax, fuel costs, MOTs and repairs and car insurance.
Look around at the possessions you haven't sold in step 1; then sell them! - take an inventory of all your possessions and consider selling them all. Start with the electrical items: hairdryers, dishwashers, toasters, kettles, washing machines, microwaves and fridges, can all be replaced for free or next to nothing. Next look at your "communications" for want of a better word. Consider jettisoning the TV, CD players, radios, broadband (free at your local library), and yes, there is life without your mobile phone!
Finally, sell your home....... But do it cleverly - make a shortlist of all the cheapest properties in your town. Call the estate agents involved and ask them to find out if the vendors of those properties would consider buying your place. If any come back with a positive response then arrange to sell your house to them so long as they agree to buy yours. It's a sort of house swap.
These 5 steps should ensure that even the worse financial situation is being dealt with. Bankruptcy and other more drastic options should only ever be considered once all the above have been attempted.
GMAC seeks bailout - CNNMoney.com
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UPDATE 1-Latvia joins queue for IMF, EU financial help - Reuters
Washington Times UPDATE 1-Latvia joins queue for IMF, EU financial help Reuters - He said the money was needed to reduce the impact of the global financial crisis on Latvia, to boost the economy and to ensure the stability of the ... Latvia Prepares For Possible Foreign Financial Assistance Latvia seeks bailout funds from EU, IMF Estonia, Lithuania say no need for IMF aid