Preparing for financial crisis is mostly overlooked or not looked at at all. I’m not talking about building a bunker and gathering food but some simple precaution steps should be done

When life is good then rarely we think about possible downsides -why should we? But in some areas it is healthy to do so and for family leaders I think it should me a must. To start some basic steps, go through the budget planning I wrote about here. Fill in the values in the budget table to get started and then do some data lookup:

  • what are the financial results for the company You work for -going up or down?
  • is it a big company or small?
  • how are their results influenced by market crash
  • If the interest rate (euribor) of Your loans goes up, how much can You handle? – do some calculations and see how much free income is left after paying off higher rate loans. (euribor is at very low point but does not hurt to calculate anyway)
  • what expenses can You cut? – try this out in real life!
  • how fast can you get rid of the family car(s)?
  • what is the minimum salary You can work with?
  • what jobs are available at that time to provide this?
  • how many months can you survive with no income?

When You take time and go over these points then You will have a better understanding of how tolerate are You to economical ups and downs. Also as I mentioned in family budget topic it is good to start a habit of collecting money for emergency cases or for investing.

Take some time this week to go over the checklist and share Your thoughts on this topic. If You need some help with calculations then send me an email.

I found good article on how to discover if You are already in financial crisis in this blog


  1. More than 20% of your income goes towards loan payments.
  2. You have to borrow money or charge your credit card to pay off current loans or bills.
  3. You cannot pay your basic living expenses with one job.
  4. You have to pay bills late, or choose which bills to pay.
  5. Your emergency fund is nonexistent.
  6. Your credit cards are maxed out.
  7. You pay only the minimum balance on your credit cards.
  8. You’re spending more than your credit card limit.
  9. You consistently take more money of out your checking account than you have.
  10. You don’t have any money left over after paying monthly bills.

Good luck!

By |2016-03-15T16:34:08+02:00March 15th, 2016|Goals and stuff|