How to overcome financial difficulties in the family: unexpected life hacks

Leo Tolstoy famously wrote that “all happy families are happy in the same way, each unhappy family is unhappy in its own way.” This phrase can be interpreted in relation to financial problems. Everyone who has them has their own, individual, despite the fact that the economic crisis is the same for everyone. Therefore, there is no single solution for all occasions. But what are these “cases”? How can Russians overcome financial difficulties? This was told to MK by the chief analyst of TeleTrade Mark Goykhman.

– In 2022, the Russians once again faced financial difficulties: a decrease in income, loss of jobs, rising prices … Which of them are the most difficult for citizens?

– In Russia, traditionally, even in crises, employers tend to lay off staff as little as possible. Part-time work, holidays, etc. are practiced. Even foreign companies leaving the market in many cases continue to pay salaries for several more months. Therefore, the direct loss of work is not very noticeable for the Russians. Moreover, unemployment even fell slightly in 2022, according to Rosstat, to 3.9% in June from 4.1% in February.

But the average salary has decreased from the maximum in March 66,757 rubles. to 62457 in May. The decrease in people’s cash receipts is combined with high inflation. As a result, real disposable incomes of the population have been declining for the second quarter in a row. In January-March they decreased by 1.2%, in April-June – by another 0.8%. For many people, this, in particular, leads to difficulties with servicing loans. According to our calculations, based on data from the Central Bank of Russia, the overdue debt of individuals to banks increased to 4.1% as of July 1 from 3.8% as of March 1.

For many, direct financial losses in savings are relevant. Someone held Russian and foreign shares on brokerage accounts. The Moscow exchange stock index fell by half from the February maximum. And, for example, the American S&P 500 – by 11%. Foreign papers were blocked from many Russians by sanctions.

Some, when the dollar rose in the spring, panicked and bought it at high prices. If, for example, they did it for 90 rubles, then current losses amount to about a third of such investments.

Someone leaves for temporary or permanent residence in other countries. There may be difficulties with income in a new place, with housing, with transfers of funds from Russian accounts of one’s own or relatives due to blocking of payments.

– How to reduce and optimize costs? Is there a universal algorithm of actions in such situations?

– To control money not only in a crisis, but also in everyday life, the first thing is to keep a personal budget, record income, current and future necessary expenses. This alone can surprise many with the results, help to see opportunities to reduce costs. Recipes for them are known and habitually used by Russians. Eliminate unnecessary expenses – less entertainment, travel, eating out, transferring purchases of equipment, clothes, tracking sales and discounts, sharing some things and much more. To a lesser extent, it is possible to save on food. According to a study by Romir, the share of food in Russians’ spending rose from 22% to 31% in the eight summer weeks of 2022. Sociologists note. “Against the backdrop of rising spending on food, among the ways to overcome economic difficulties, the most popular are cutting spending on entertainment (47% of Russians), avoiding expensive purchases (46% of Russians), redistributing the budget in favor of food and necessary goods (43% of Russians).”

– Are there options for finding additional income in the current conditions?

– They always exist, but also very individually, depending on specific conditions. In other words, it depends on the education, experience, inclinations of a person, on his environment, place of residence and other things. Although, of course, finding additional income is not easy during a crisis. There are great opportunities online. You can not only try to find a part-time job or additional income through it, but also take certain courses, master an additional specialty.

– Do banks offer any options for those who have financial problems? In what cases is it worth getting involved in loans and borrowings, and in which absolutely not?

– If a person has financial problems, then most often banks tend not to interact with him. Unless there is some kind of solid security for lending. In principle, it is possible to get a loan secured by existing real estate, a car. And this is conceived better than, for example, a pawnshop or a loan from a microfinance organization. But it is worth doing this only if the funds are urgently needed and the terms and sources of repayment of the loan are clear. For example, money is needed for urgent treatment, surgery, and after recovery it will be possible to return to work. There are a lot of such options, but in each case it is worth weighing all the risks scrupulously.

– Let’s be specific: how can temporary financial difficulties be overcome and how long does it take?

– There are no special “know-hows” here, the methods were largely indicated above and, if possible, are actively used by the Russians. Planning and analyzing family income and expenses can chart ways to save money. It makes sense to look for something to sell from your property – albeit inexpensively, through marketplaces and social networks. Appliances, furniture, even unnecessary clothes … Look for opportunities for additional income, temporary or even one-time part-time work. Try to learn new skills, such as computer programs, copywriting, massage, manicure. Learn how to invest in financial instruments, taking into account all their risks. How much time is needed for all this – again depends on the specifics. It could be a month or a year…