Top 10 mistakes we make during a crisis

2024 Author: Malcolm Clapton | [email protected]. Last modified: 2023-12-17 03:44

How not to do something stupid when everyone is talking about the collapse of the ruble.

1. Save money under the mattress

Many believe that the financial crisis is a reason to urgently move savings from deposit accounts under the mattress. The argument is simple: "The bank may close, I will lose everything." However, this decision is wrong.

Participation in the deposit insurance system is mandatory for all Russian banks. Therefore, even if the institution collapses, the depositor will receive compensation. Its maximum amount on accounts and deposits in one bank is 1.4 million rubles.

Experts recommend always investing not in a stock, but in something that brings a regular income. The money under the mattress can be depreciated due to inflation. Your stock will only decrease.

2. Start a credit card for a rainy day

Calls to use a credit card with a huge grace period, cashback and other attractive features are heard from all corners today. But the financial crisis is definitely not the time when you need to take out a new loan with high interest rates.

A credit card can be used as a reserve fund only if you are sure that you can repay the debt on time. But you shouldn't count on it as a permanent safety net. Borrow the required amount from friends. Better yet, create your own financial cushion in advance.

3. Buying up a currency immediately after a sharp jump in the rate

There is a golden rule: buy low, sell high. If the situation is right, there are no questions. However, they often start buying up a currency in large quantities when its rate has jumped sharply. This is a costly mistake.

The maximum value of the currency falls precisely on the peak of the financial crisis, which many accept as favorable conditions for buying. And then it gets cheaper, you lose money.

Natalia Yasheva Manager of the St. Petersburg branch of FORA-BANK.

It is important to share the risks as much as possible, both during and outside the crisis. This strategy is called “not keeping all your eggs in one basket”. Store your savings in different currencies and in other assets of varying degrees of liquidity (with different speed of their implementation and conversion into cash).

Assets mean cash, funds on current accounts and cards that can be withdrawn at any time, funds on deposits, the withdrawal of which is fraught with loss of interest, real estate, vehicles, gold and jewelry, shares, shares and similar material values and financial instruments.

If you have short-term plans (for example, you want to spend ruble savings on a trip planned in the near future), then buying currency and fixing the rate may be reasonable and correct.

4. Buy unpredictable assets

Experts advise not to panic and buy assets with poorly predictable pricing. First you need to conduct an audit of the assets, liabilities, income and expenses of the family. And then make sure that the balance sheet converges, you have a reserve of funds in case of loss of income. And in a crisis, no one is immune from this.

Dmitry Monastyrshin Chief Analyst at Promsvyazbank.

During a crisis, different assets (real estate, deposits, securities) behave differently. Currencies rise in price, stocks and bonds tend to lose value. If the crisis is accompanied by rising inflation, then property prices can rise rapidly. And then they will start to fall due to a decrease in purchasing power. Any crisis sooner or later passes, asset prices turn in the opposite direction. Currencies are getting cheaper, stocks and bonds are getting more expensive.

The key mistake is making deals in the acute phase of the crisis. Buying currency at a high rate results in losses as the ruble recovers. A similar picture can be seen in the stock market. Panic selling in the acute phase of the crisis leads to fixing losses.

5. Thoughtlessly buying unnecessary goods in reserve

Currency surges are provoking forays into grocery stores and electronics hypermarkets. People in a panic buy up TVs, microwaves, washing machines, salt, cereals and matches. And completely in vain.

Alexey Rodin Independent financial advisor, founder of the consulting company InvestArt.pro.

Anyone is advised to have a money airbag. This is usually an amount equal to the family's expenses for six months. Many people keep this amount at home or in a bank. And at a time of crisis, sharp changes in exchange rates, they spend this stock on absolutely unnecessary things.

Household appliances purchased for future use will rapidly lose value and gather dust in the corner. It is much wiser to use the chance that the economy gives us about once every 7-10 years to acquire promising assets that have fallen in price. This is what will give a worthy addition to capital in the future.

Alexander Vorontsov Expert of the Instamart product delivery service from Moscow hypermarkets.

People perceive the financial crisis in our country as the onset of war, and therefore prepare accordingly. Cereals, canned food and salt are swept off the shelves. People are afraid that everything will rise in price so much that no one will be able to afford an extra portion of buckwheat.

But such measures are ineffective for consumers. There is a certain percentage for which inflation will not go. And even an economic crisis is not capable of simultaneously leading to the collapse of the trading system.

The rise in food prices will be gradual, even taking into account the collapse of the ruble. Few external circumstances can significantly affect the cost of salt, especially since 70% of it is mined in our country, and there are still billions of tons in reserves.

Often times, a crisis is an unreasonable reason to raise prices. In 2014, people rushed to buy buckwheat, and sellers, in response to demand, raised its cost. This phenomenon is called the price expectation effect. People succumb to the hype, spend money like the last time. As a result, the entire pantry is filled with expensive buckwheat. This is as unwise as buying dollars at the peak of the ruble's fall.

Do not rush to sweep salt, cereals and crackers from the shelves. Your panic can be passed on to others, demand will rise significantly, and with it prices.

6. Panic and rush

Even in a crisis, you can save money. It is important to take your time and approach acquisitions wisely.

Yulia Lipatova Deputy General Director of the Aeroclub business tourism agency.

During active exchange rate fluctuations, you should not mindlessly buy air tickets. Weekly, on the night from Tuesday to Wednesday, prices for tickets abroad in ruble terms are recalculated at the euro exchange rate in accordance with the rules of the International Air Transport Association. The trading data for Monday is taken as a basis.

If the ruble strengthened on Monday, you should wait until Wednesday when prices will update in the buyer's favor. If on Monday the ruble shows a fall, it is definitely not worth delaying the purchase - air tickets should be bought by the end of Tuesday. When the jumps in the course are quite impressive, ticket prices can vary considerably.

7. Put up for sale "unnecessary" dacha

A summer cottage in a financial crisis is a great way to hold out thanks to your garden. Instead of selling a summer cottage for a pittance, trying to replenish your piggy bank with at least some amount, it is better to buy seeds and grow your crop.

8. Make large purchases

Do not give in to panic and mindlessly invest your accumulated savings in real estate. Especially if it is being sold at a "maximum discounted price." It may happen that after a crisis its value will fall even more.

Dmitry Monastyrshin Chief Analyst at Promsvyazbank.

Large purchases in times of crisis, such as a car or real estate, may be worthwhile on one condition. If it is possible to purchase assets at a low cost when market prices have already risen. Such deals can indeed be profitable if you are confident that inflation will eat up your savings and you don't need a liquidity cushion.

Large purchases should be approached with caution: this can be a freeze of funds for a long period. In addition, such investments may incur associated costs. Selling real estate, a car or equipment in a crisis and getting a profit on it is hard enough.

And it is definitely wrong to commit yourself in the form of an expensive purchase loan.

9. Go into total economy mode

If you decide to switch to bread and water, and in the literal sense, it can be unpleasant backfire. The state when you think about how not to spend an extra penny is destructive. Most likely, your productivity will decrease, stress can provoke the development of depression.

Margarita Kashuba Marketing Director of the EnglishDom online school of English.

Consumers step on the same rake every time: they start saving by investing in themselves. I have heard more than once that in the face of financial difficulties, people bitterly regret the need to postpone the purchase of a car, but they easily refuse the opportunity to continue their studies or improve their qualifications.

My advice: keep spending money on what you need for your daily life (food, medicine, hygiene items). Switch to no name goods and large packages, do not overpay for brands and packaging.

And don't stop investing in yourself and your development: courses, training, tutors for children, good schools. Pause material investment. New cars, telephones, clothes, in addition to urgently needed, real estate will wait until a more favorable period from a financial point of view.

10. Don't change your habits

Addiction to cigarettes can cost 1, 5 thousand rubles a month or more. It seems like a small amount. In a crisis, it can become significant. Audit your life. Surely you have a lot of opportunities to save money.

Yuri Mosha Founder of the Russian America company.

The first and main advice when a crisis occurs is not to panic and not try to maintain social status at any cost. On the one hand, discounts, discount stores, non-branded goods, bulk products. On the other hand, there are additional sources of income due to non-core work. There is nothing humiliating if a university teacher takes several translations for the evening as a part-time job, and on weekends, instead of a pretentious shopping center, he goes for a walk in the park with his family.

Review the employment system for your entire family. For example, children can sit with their neighbors' child, post flyers, work as couriers. Remember, the Chinese character for crisis has two elements - danger and opportunity.