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How to overcome the Credit Crunch, Part 2

The credit crunch has been an extremely difficult time for most of the population; trying to get bargains, tightening the financial belt and trying to save money in any way possible has been at the front of everyone’s minds. This article gives some tips on how to save money and make the credit crunch that little bit easier.

Methods of finding finance

The people who can find clever ways of raising money are going to be the people who are the big winners in the future.  You have to look at ways to find money.  Over the next couple of years things will get a lot better as banks need to lend money in order to make money and mortgage companies need to grant mortgages in order to thrive.  These products will come back.  However in the meantime, be creative in getting what you can in place to survive or indeed move before anyone else does.  There are many people out there who are lucky to have a lot of money.  Perhaps you can convince them to part with some? Perhaps you can find investors who will invest in what you have to offer.

Control you outgoings

You need to revise your budget.  It is only when you have control of your outgoings that you can be completely confident about your business.  A good place to start is by writing down your sources of income on a monthly basis, and then consider every penny that leaves your account.  Once you have calculated all your budgets, what’s going out? What’s coming in? What’s the balance?  What can you cut back?  What’s your overall final balance?  There are then two key questions to ask:  what can you do to bring the costs down? And how can you finish the project and get an income faster?  Perhaps you should consider renting your property cheaper for now, or selling for less, just to get some money through the door.

Look out for bargains – people who are prepared to get rid of stock at low prices.  A downturn will bring out motivated people who are prepared to work for less money – cheap labour.  It is recommended to get at least 2 or 3 quotes for everything, especially raw materials.  Use your time and energy to save cash, searching for bargains.

Re-evaluate your property portfolio

Review your property portfolio.  It is important to make a review of what you are doing in your property portfolio.  If you can chop up thing that are costing money, then get rid of them.  The most important thing is to recognise that you have got into difficulties and to take action.  Renegotiate with your mortgage company; ask for a payment holiday.

These aren’t the only things you can do of course, but they will hopefully give you a few ideas and help you. Hard times aren’t yet behind us, but taking small steps will benefit you in the long run.

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