With the economic woes facing countries all over the globe, being affected by recession is almost a certainty. Here are some valuable tips on how to recession-proof your life and lessen the impact of recession.
1. Spend only on necessities. This is probably the most basic rule and the one we are most likely to transgress especially for women. How many times do we find ourselves drooling over the latest branded bag or newest pearl jewelry that all thoughts of saving would simply vanish in our heads? Recession is the time to curtail that habit. If you don’t need to buy new clothes or jewelries then please refrain from doing so. Postpone that holiday trip for now. Spend only on the necessities – food, shelter, etc. – and save the rest. If you cannot stop yourself, then imagine what would you do if you run out of money for food. Bleak thoughts, I know. But this could effectively curb your desire to buy unnecessary things.
2. Pay your debts. Pay your credit card in lump sum. You would have 0% interest if you do. If you don’t you will be paying a high price for interest alone. If you need to borrow money, look for financial institutions that offer the lowest interest rates. Then have it refinanced by a reputable refinancing firm. Refinancing can lower your debt by assuming and paying your loan in full. Then you pay them at lower interest rate. The lower your debts, the better.
3. Save. During recession, everything is uncertain even your long-time job. So save money for the coming rainy days. Make sure that you have enough money to last you a year. This may come in handy if you got booted off the job and you need to look for a new one. The money will tide you over while you wait for things to get better.
4. Slash off bills. If every member of your family has a cell phone and you can do without a landline then have it cut off. You can save money from the monthly payments you would have to dish out for your landline.
5. Discounted groceries. I have mentioned in my previous article How to Feed Your Family with $10 a Week Budget. The advices are really doable and have been proven to be effective.
Try this yourself