Financial crises is a rather confusing time for everyone as no one knows what to expect. This can make people panic and start behaving in an illogical way. Here you will find more information about common mistakes made by people during a financial crises which are certainly have to be avoided.
Using a credit card
For many people a credit card seems to be the most reliable source of additional money during an unstable financial situations. There are individuals who would like to feel safety choosing a credit card especially since there are so many attractive offers today.
Yet, a financial crises is definitely not a good time to get into any loans offered by official institutions. If it happens there is a crises and you do not have any money saved for a rainy day, you should first try to borrow money from your acquaintances.
Purchasing any goods in order to save money
One of the major fears during severe financial crises is the possibility of currency losing its value dramatically. Unfortunately, such a fear makes many people behave in an illogical way and purchasing any goods available on the market in order to use the money is one of such behaviours.
One of the most popular types of good purchased by people scared by a financial crises is electronic devices. Making storage of groceries at home is also a popular mistake made by panicked people.
In such a situation, the best way is to keep your saving instead of trying to get rid of them. The minimum recommended amount of savings to keep for a rainy day is the sum which will be enough for your family to live through three months without decreasing expenses. It will be even better if such an amount of money will be equal to the money needed for life during six months.
If you rush to spend it on electronics, you are literally risking to absolutely waste this money. That is so since purchasing random goods during a crises means you do not actually need them so they might not be even used by your family. At the same time, the prices for devices are decreasing rather fast, so in all likelihood, you will also not be able to sell them for an adequate price.
At the same time, purchasing various nutritional products in large amounts is also senseless as the majority of them especially the ones produced inside the country will not stop being produced. They will also not change their price significantly unless everyone starts buying them at the same time and in huge amounts.
Selling a land during a crises
Some people are feeling a likelihood of getting into a financial trouble during a crises, so they decide to get rid of the land they are not using in case they own a piece of it. Certainly, this is done in order to get some extra money.
Financial experts are not recommending doing it as the your land might be very useful for getting your own harvest which might be a way more helpful than selling a piece of land urgently which can make you to a financial loss in a long term.
I was wondering when is the best time to sell land? During the crisis, land prices rise incredibly so you can get a good price.