The current economic scenario is surely pinching on your pockets and almost everyone is feeling it now. If you are one of those, then may be it is time that you evaluate your finances (both business and personal) to improve them or at least keep them unstrained.

So how do you think you can survive the credit crunch?
Well, an easy yet tough method would be to be extremely disciplined with your finances in times like this. You may benefit from the few tips on surviving the credit crunch:

  • Prepare a budget: This is the very first step. You can save your business as well as personal finances by drawing up a budget and more importantly sticking to it. In times like this, it will be dangerous for a business to go beyond its finances. This holds true for personal finances too. By preparing a budget you can manage your finances better so that you can pay off your debts.
  • Gather your money : If your customers owe you money, brush up your collection skills and ensure that you approach the customers before other creditors do. If you slacken you may not recover the debts people owe you and hence will eventually lead to a drop in your income.
  • Rid yourself of debt: Rid yourself of as much debt as you possibly can. Pay off your debt keeping it as high priority. You would want your business to be in debt and this is surely not the time when you can afford to be more in debt. If you do have to buy something essential and have to go into debt for that, do your calculations well. Ask yourself if you can afford to go further into debt to buy this?
  • Save money: Save some amount of money forcefully. Put some money elsewhere and think it never existed. This is a good time to save. Develop your saving habit now if you haven’t already.
  • Plan for the future: Do not touch your planned savings to rid yourself from short term financial troubles. Remember, if you have your own business, you are your only provider and it is your savings from your business that you will use in your old days when you can’t earn anymore. It is also not sensible to spend all of tomorrow’s money today. Plan ahead and see how you can manage your finances even after paying off your debts.

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