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The economic global crisis has done a number on the world. People lost their jobs and even their homes. The crisis in the United States has expanded rapidly in Europe, bringing recession and decline in all industries. Five years after its debut, European states are still struggling to come through.

People are talking about a new crisis that is waiting to affect us all. We don’t know for sure whether projections are accurate, but here are ten lesson we have learned from the financial crisis, lessons that we should all apply in the way we manage businesses and money.

1. Never acquire too much debt

You should not ever indebted to the limit. If banks are accepting indebtedness to 70 % that does not mean you have to and take the 70%. Think that anything can happen and the more money you borrow, the harder you will be able to pay back.

2. Pay the right price

It is not right to pay for the things a price that you don’t feel they are worth. Wait until the price will reflect reality. If you bought before the crisis a studio with the money that you now can use to buy a two or three bedroom apartment, how comfortable would you feel in the new house? If you’ve got a fancy car that you can no longer pay, but now costs 30 % less, what is that like? Never hurry when you make a purchase.

3. You have to work

The loser mentality like ‘time passes, wages go’ is what makes you expendable for your employer. In tough times, you’ll be the first fired or, at best, last on bonuses.

4. You should not invest in things you do not know (enough)

It’s a simple tip that would have been very useful on Wall Street at a certain time. Extended: you have to ask for more information when you do not understand something. Unit- linked products, overdraft, subprime – what do they mean? Information is power.

5. Focus on savings

So that you will not lose your house or car in a month if you lose your job. Work on a budget, so that you can put money aside with each paycheck. Having an emergency fund is the best thing you can do for you and your family, not only when a financial crisis hits. But all the time. If things are good from a financial point of view that means you can really save some money.

6. Nothing is indispensable

You can live very well without many of the things you thought last year to be indispensable. If we got used to living all the time as if we were always facing a financial crisis, we would save more and we would waste less! The luxury of quiet sleep is more important than a luxury car lease. Of course, that doesn’t mean you cannot splurge once in a while, but don’t make a habit out of it. Moderation is the key.

7. Future is unpredictable

Nobody knows what will happen next. Many do not even know what is happening in the present, let alone what will happen in the future. To get through these times, turn to a simple strategy: save, diversify, do not risk when it’s not appropriate, always prepare yourself for a negative scenario and the means necessary to survive.

8. Run your business the right way

If you have a personal business, you have to build it solid and intelligently, do not to rely on speculation, self-increasing market, lack of competition, countless employee expenses.

9. Read carefully

When it comes to signing an agreement, no matter the nature of it (loan, lease, insurance etc.), make sure you give the contract a good read. You have to read small print terms and abstain from signing it when you are not convinced that you understand because you may have to face the most unpleasant consequences. Do not be afraid to ask if you do not understand something.

10. Diversify

We need to diversify your investments and never put all your capital in stock, real estate, or IT. You never know when and where will recession hit. Invest wisely and small amounts.