How To Survive a Recession
Yes, You Can
How to Survive a Recession / Hope For The Best... Prepare For The Worst
This old saying has the wisdom of ages and it still holds true today during these hard times. How do I prepare for the worst? There is no magic formula that can prevent a recession from affecting you especially if you are a middle income wage earner. The possibility of losing your job is all too evident.
There are however things that you can do to prepare for the storms of financial crises. The key is preparation. This problem must be faced squarely so that you will not be shocked one day to find that you have lost your job and you have no financial safety net.
How to Survive a Recession / Keep Cool
The first thing to keep in mind is not to panic. When you panic your decision making and judgment will be severely impaired and you probably will not make the right financial decisions. Wall Street is a good example. We have all been witnesses of all the panic selling that has worsened the situation.
We all know that selling out of fear is the worst thing we can do. When we sell out of fear we will probably lose a lot of value from what we are selling.
How to Survive a Recession / Protect and Minimize
There are a number of ways that you can prepare for a recession and survive a recession. These can be classified into two broad categories. The first is protecting you income. The second is to minimize your expenses.
How to Survive a Recession / Protect
There are several ways that you can protect your income. Number one is to minimize the chance of losing your job. You may have to work uncompensated overtime but if you have work during the recession chances are you will make it through in fine financial condition. You can also increase the skills that you bring to your workplace to make you a more valuable employee.
How to Survive a Recession / Minimize
You must however, be prpared for layoffs. Even if you think that your job is secure layoffs can happen to anyone. You must be ready for the worst. This means that you should update the papers you need to apply for a job like your resume and maybe certificates of special skills. A list of contacts and acquaintances you can contact for applications.
If you have a second job this can help immensely. Additional income from a second job will really boost the bottom line.
How to Survive a Recession / It's all doable
Minimizing your expenses simply means that you reduce the money that you spend to the barest essentials. Luxury items should not be prioritized. Paying with cash instead of will do away with the interest that you pay when you purchase with your credit cards. This seems obvious but there are multitudes of ways that you can reduce your spending.
You can save money on grocery shopping by always shopping with a list. You can plan meals on what is on sale. You can save by taking advantage of sales on items that are normal purchases for you. Never eat out. Eating out just makes you spend more.
You can also save on money in the way you use your car. Organize all your errands so that you should need only one trip per week to run them all. Walk as often as you can and as much as you can. This is also good exercise.
If you are serious about reducing expenses pretty soon you will be trimming all extraneous spending and this will help you come out of the recession in better financial shape.
For more information about how to survive and thrive in a recession (or anytime) follow these links:
Find jobs that never go away. Visit the Recession Proof Jobs page.
Spend your money wisely during the period. Get help on the Recession Investing page.
What's the Recession Cycle? When was the last recession, and when will this happen again?
Definition of Viral Marketing. Learn how this new word of mouth can increase your visibility.
Customized Marketing Solutions can make your business boom. Find out more here.
Create a foundation of integrity. Learn the true Definition of an Entrepreneur.
Return from How to Survive a Recession to VoteForUs home page.