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Tough times call for drastic measures. As economic superpowers like the US and UK struggle to meet the demands of an impending global recession, we can all do our share by getting our personal finances in order. Now, more than ever, it is important to keep debts in check and be extra-cautious when deciding where to put your money on.

Here, some experts share tips on how to insulate ourselves or cushion the impact of the global financial crisis.

First things first, take note of debts, their terms and when they are due. Pay off those that earn the most interest such as credit card debts and unsecured personal loans. Unmanaged debts can cause you to lose your money on interest alone.

It is also advisable to always think long-term when deciding on financial matters. Looking to buy a new house or a new car? Don’t expose yourself to the risk of being trapped in a cumbersome mortgage loan in the event that you get retrenched or suffer a pay cut. The money-savvy investor will want to wait out the crisis until the market is more stable.

The most important expert tip is to always be prepared for any contingency. Imagine the worst that could happen, such as losing your job or suffering a pay cut. Now, think about whether or not, with your present finances, you think you can survive until your next job. If your answer is “No,” then it’s time you plan for the rainy days—and start acting now. Save up by avoiding risky ventures or businesses that require high capital expenditures. Spend only on basic things that you can’t do without. And most of all, no matter how dire the need becomes, don’t give up your insurance because you will need the proceeds when things go from bad to worse.

Tags: Crisis, Finance