Families across the country have felt the financial pinch and are scrambling to learn how to survive a recession. With reports of a recession in the near future, we must be equipped with knowledge on how to endure potential financial hardship. There’s no one correct answer on how to survive a recession however, there are some basic and strategic steps you can take to recession proof you and your family.
First and foremost, there has to be transparency with your finances. It’s important to take an inventory of what you’re spending and what actual your income is. A quick way to learn your spending habits is to keep a spending journal for at least a week. Take a week of recording every transaction, including minimal spending like trips to the vending machine. Also, pay attention to any random fees you may be incurring unintentionally. This will give you insight on your expenses outside of monthly bills, and will tell you where to cut unnecessary spending.
Another way on how to survive a recession is practicing great saving habits. Many of us as children had piggy banks or something that represented a place to save our few coins or dollar for a rainy day. Now as adults, a majority of us have abandoned practical saving behaviors and have opted to have slim savings accounts to none at all. Many financial experts believe a good emergency fund should have a minimum of three months of income to a year’s income. The National Foundation for Credit Counseling found that about 64% of Americans don’t have access to $1000 for an emergency. To survive a recession, you must have sufficient savings. A great and basic way to work towards a hefty savings is to set aside at least 10% of your income each paycheck. Find an online bank or credit union with high yield savings accounts, and begin saving immediately.
During recessions, many companies downsize starting with employees. You want to make sure you’re on top of your game at work, learning new skills, and taking on responsibilities. Become more than valuable to your job. Be indispensable, available, and hardworking so in case there are cuts in the staff, you’re overlooked to be let go.
One of the easiest ways to survive a recession is to use the internet as your money saver. There are tons of websites dedicated to informing consumers on how to buy cheap in a gloomy economy. Living Social is now one of the premiere websites on purchasing the best deals which are city specific. Websites like Coupon Suzy allow consumers to print grocery coupons instantly.
It’s essential to partner with your spouse, a family member, or friend to help with adjusting during a recession. There’s no easy way to navigate through rough financial times. But, with a focused, clear, and realistic plan in place, you can overcome and survive a recession.