Here are some tips on how to survive a recession. Because whether we like it or not, we are in the middle of one. In fact a global one. Times like this need more than budgeting, coupon clipping and cost cutting. We’re talking about honing your survival instincts and thinking ahead.
- If you own a house, hold on to it. This is not the time to sell and in many areas, property values are less than what is owed on them.
- Mortgage rates tend to drop during a recession. See if it would make sense for you to refinance at the lower rate. Make sure you account for any refinancing costs though.
- Pay off as many debts as you can, while you can.
- Stop using credit cards to pay for things unless you are able to pay them off completely.
- While job security really doesn’t exist in times like this, do whatever you can to make yourself more indispensable at work. Take on more responsibility, wow your bosses with a ‘can do’ attitude.
- Be prepared for layoffs/pay cuts. Keep your resume updated.
- Start networking like crazy even if you feel your job is secure.
- Recession proof your budget. Build your emergency fund.
- If you lose your job, your first priority is to feel OK about yourself. You might figure out how to survive a recession financially but if your self-esteem takes a beating, you will have a tougher time recovering. Do something good for yourself. Click here for some simple treats that will not cost you much.
- If you get laid off and are surviving on your savings, now is a good time to make some drastic changes to lower your monthly bills.
- In a slower market, it can take time to get back into the job market in your career field. You might need to take on work that is ‘less than’ you. But do it anyway. Take up anything worthwhile that gets you out of the house and starts some cash flow again. From firsthand experience, I can tell you that is way better for the ego than sitting around moping at home, waiting by the phone that never rings! This will also make your emergency funds last longer.
- Update your skills or take classes to acquire new ones. This way, when the market improves, you will be back, bigger, better and stronger than ever.
Visit www.simple-tips-on-budgeting.com for more budgeting and money saving ideas to help you survive the recession.