If there is one thing that we got out of the recession, it is the realization that good financial habits can save your future. When things go bad and the economy in general is on a downward spiral, proper financial management can keep you from going down with it.
Here are some of the financial habits that a lot of us learned out of the recent economic crisis.
Value of a supplemental income. This does not only mean a second job. Working two jobs when you don’t have to can be tiring and no one wants that. However, you need to understand that you need more and one source of income. That means you should save up so you can set up a passive income generator.
Savings go a long way. This is where a lot of people are having trouble applying. They would rather enjoy the extra money that they earn. While you have every right to do so, you should be wiser to put aside money for the rainy day. There are two things that you should save up for. One is your emergency fund. This is the money that you will strictly keep your hands off and use only for emergencies. The other savings is the one that you can use for big purchases. If you want to buy a new appliance, save up for it. That is a lot better than using your credit card and putting yourself further into debt.
Finding cheaper alternatives. When most of us found our extra money diverted into our debt payments, we lost our ability to spend for our usual entertainment activities. Despite that, we found ways to enjoy life despite the lack of finances. We learned how to make use of the free facilities in our community centers. We also found better alternatives that will allow us to socialize without spending as much as we used to. For instance, a backyard barbeque is a great option to keep seeing friends.
In essence, frugality gained a renewed importance after the recession. It used to be something that we stay away from because we wanted to enjoy life. Now, we view it differently because we realized how this lifestyle can save us from another economic crisis.
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