An Economic crisis is a term used to describe a situation in which the economy of a country, company or organization or individual experiences a downward turn. It is a difficult situation that arises in the operation of a financial system of a country, organization or individual and affects the running of its affairs in a significantly negative manner. To put simply an economic crisis is a condition of not having enough cash flow or as much as was previously obtainable to meet up with the demands of running a country, organization or in the case of individuals the home front.
An economic crisis can be caused by many factors:
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Stock market crash
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Devaluation of a currency
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Poor economic policies
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Decreasing trade or productivity
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Political instability
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Natural disasters
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Job loss or loss of a source of livelihood for individuals
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Pandemics or epidemics
Whether as individuals or collectively There is always a threat of an economic crisis. Sometimes even the economic experts do not see it coming. When this happens what can you do? How can you stay afloat?
Dealing with an economic crisis
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To successfully deal with a period of economic crisis you need to before anything else assess your current financial position. You should do an appraisal of where you are financially and what your prospects of improvement are in the weeks and months to come. This would help you to properly take the next step.
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Arrange your expenses in order of priority and make a budget. Making a budget helps you properly differentiate your needs from your ones and helps you stick with what is truly important. Making a budget is what prepares you for the next step
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Minimize your bills and expenditure; simplify your lifestyle. opt for two-course meals rather than three or four, walk or cycle rather than ordering an Uber.
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Evaluate your situation. What are your chances of getting a new or a better job? Do you have enough funds to set up a business that would not take time before yielding profit? If you live in Nigeria, here's a list of such fast moving businesses. https ://smartsmssolutions.com/blog/80-news/1379-businesses-that-move-fast-in-nigeria If your answer to both questions is yes, then it is about time you took action. If you still have a job, try getting a second one, if possible, to earn more cash.
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To keep an organization running during an economic crisis, you can choose to lay off staff depending on the gravity of the crisis. The crisis may cause some employees to be redundant and there is no point in retaining them. In other cases, a cut in their pay would be the way out. There is also the option of asking employees to work remotely and save the cost incurred in keeping a physical work location open.
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The morale of your employees is likely to drop during such a crisis. Channel some attention towards maintaining a positive attitude and high morale. A decreased morale would put even more strain on an already struggling organization. To do this you need to be transparent with your employees. Let them know exactly what is going on, how it affects them and what plants are in motion to make things better.
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Keep the lines of communication open between yourself and your employees. Use text messages to reach out to them regularly, to keep them up to date and motivated SmartSMSSolutions offers amazing bulk SMS services at a fair price and would be beneficial to you even during an economic crisis.
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Prepare yourself mentally for a worst-case scenario.
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As a preventive measure, set up an emergency fund.
Fraud is one thing that could cause an economic cruise, there are ways to prevent your business from fraud.
Going through an economic crisis can be mentally exhausting and physically draining. Be determined to not give in to despair or give up as doing so would sap your strength.
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