Personal finance before the conflicts.

We are in the year 2022 and the advice remains the same, buy while you can buy, really difficult times are coming, if you thought I was joking you will have realized that it is not. I prefer to capture your attention without sugarcoating the words or disguising the facts, do not run out at the last minute wanting to learn and do everything you could to avoid reaching a summons that you do not want to be.

Without an emergency fund your family is unprotected, not having enough financial resources to meet important needs when times are relatively good and the economy appears strong is difficult, but it is even more difficult when the financial system is in a contraction and your need and opportunity to feed and protect your family are exhausted.

One of the most important things for someone who wants to be prepared for the future is to plan to get out of debt and manage their money effectively now.

I will now present you two scenarios, you will decide which of the two you are in at this moment:

The Confident: Carlos lost his job today, a month ago he had talked to his boss precisely for this reason, several people were being fired in other companies and the same thing was happening in his, his boss had guaranteed him his position only a month ago, his mind now he is flooded with anxiety the loss of his job means for his family a mountain of bills and debts contracted time before, they will join with new debts for having to ask friends and family so that his family environment has to eat, pay electricity and other services. All that security and lifestyle depended on his job. The one who prepares: Francisco lost his job today, while driving home he wondered if his boss was telling the truth when he told him a month ago that his position in the company was secure, he would tell his wife over dinner tonight, she he would worry and to be honest he too, finding a job to be able to cover the expenses of the house and his family would be very difficult, however he was glad that he had the ability to be a bit demanding since he and his wife had created a fund emergencies through savings and strict budgeting. He would have six months to find something to meet his and his family's basic financial needs.

These are not zombie, war or crisis scenarios, nor doomsday scenarios, these are two scenarios that are playing out on all sides, every day families have to deal with the realities of job loss.

With scarce jobs and lean times, those who plan and prepare ahead will have much more choice and sanity if they have to navigate tough economic times.

The reasons why you might need access to an emergency fund are as varied as the news headlines, there are many different disasters that can arise and almost all of them will require you to have some additional funds on hand, the world in turmoil is simply showing you that you must be prepared. It is vitally important not to rely on credit cards, drafts and lines of credit for these unexpected events, these things will cost you much more, the interest is in the long term; credit cards are not an emergency fund an emergency fund is the money you have on hand that will not cost you any interest, don't make your personal disaster worse than it is by paying increasing interest for the next two years .

You can sell items that you don't use, make some of the various options that the world of cryptocurrencies has, take a part-time job, among other things that you can do, it will help you a lot to increase your savings but you should hold on to some items that could be much more helpful if things get a little worse. Do not get rid of, for example, jewelry such as gold and silver that will increase its value. To be successful your finances need a budget, and to prepare your finances you must have a starting point, that starting point is your budget and creating a budget is not difficult, but it does take a little time to put together. Every penny you save will help you pay off the debt you have to seriously start building an emergency fund, I'm not saying that you choose to pay off your debts instead of creating your emergency reserve, because if this is your case, family comes first , understanding with this that you should privilege above all to provide resources for your loved ones, but if you have debts you should look for ways to increase your income to break the chains of indebtedness to be free to build that precious emergency fund more quickly.