During these hard economic times more and more people are confused as what to do when it comes to saving and making money. At a time like this, every dollar counts! Sure you may want to get that brand new car, however; what will the cons be if you make that decision? Below I have listed tips on how to survive and beat hard times for what we know as a “recession”.
Trimming the Excess Fat: No this doesn’t mean lose weight! It means cutting back on all the add-on’s you don’t need. During a recession it’s important not to spend money on high priced things such as cars and houses, during a recession it’s more about being able to maintain. For the average American, one would be spending out a lot more money than they were making by purchasing an expensive car or house. Not only that, just imagine the interest rates! Learn to do with what you have as of right now, like I said, every dollar counts!
Invest the Smart Way: If you’re going to make investments, make sure they’re smart investments! Making a smart investment would be the only logical reason to spend a large amount of money during a recession. Take for instance since the market has been down, it would be great to invest in a house ONLY if you knew you were going to sell it for almost twice as much as what you paid for it. Lot’s of homes are foreclosing during these hard times so finding the proper home in the proper location would do you good in the long run.
Listen and Watch: Listening to what’s going on around you or your community will help you in more ways than you know. Know that almost everyone is going thru the same struggle that you are as of right now. If you listen to what’s going on around you, you will start to notice when times are good and bad. Take for instance if everyone started getting a full tank of gas as oppose to half a tank, you’d know that times were getting better based on people being able to afford full tanks.
Have more than one Income: Sure you may have a normal 9-5 job, however; will you be able to pay all of your bills for the month? With the price going up more and more on almost everything, a normal job may not be able to cover all of your expenses anymore. This would be a time to utilize all of your knowledge and talents to make extra money. Simple things like cashing in all of your loose change would even be a great way to add a couple of extra dollars to your pocket.
Use Cash, Not Credit: Using only cash will benefit you in more ways than one during a recession. You know for a fact that when you use cash you’ll be sure to only get what you need and no more (most people will). At this point in time it would be taking a step backwards if you used credit. Not only will the interest rates go thru the roof, credit card companies will be making you pay nearly the whole balance as oppose to making payments.
Paying Debts: With money being so hard to get a hold of, the worrisome feeling of paying debts has closed a lot of people’s mind. If someone owes you money, try asking them about it in a nice but straight forward way. Take into consideration that times are hard! If you owe debts, make those you owe feel comfortable by reassuring them you haven’t forget about your debt, Even offer to pay them more than what you owe them once your financial hardships past.