Recessions happen and you can see it and take the appropriate steps before it is too late. Here are a few tips you should know about to help you survive.
1. If you happen to be in debt, get out as quickly as possible by finding ways to pay for it. If you need help, hire a financial consultant who can help you with your budget.
2. Instead of just paying your bills every month, perhaps you should see if you can switch to another company that offers cheaper rates. Take a look at your electricity, gas, cell phone, television broadband package, insurance and even your bank account then make the necessary changes.
3. You should also make cuts on daily spending. When you go to the grocery, buy only what is necessary or switch to a cheaper brand. You can save significant money when buying generic brands of product rather than the big brands. Read the labels… they are often the same thing… only cheaper. If there are items in promo, get it because they could be just as good or even better to what you are used to buying.
4. One thing that most every grocery offers is free samples. Since you are there, get some as this will surely save you a few dollars for other more important items. If the grocery you frequent gives out vouchers, make use of that as well.
5. Do you always have to go out for lunch when you are at the office? Of course not. You can prepare the food at home and then take it to work. Your kids should also have a lunch bag instead of getting their weekly allowance so even at a young age, they understand the current situation.
Work at Home
If possible, ask your employer if you can do some of the work at home. This will help you save gas since you don’t have to drive to work. Just be sure you are as productive at home like you are in the office. If this is not possible, see if you can carpool with someone from the office.
You should consider developing a secondary source of income with a home based business. Identify something you are interested in and search for an affiliate program or network marketing program that offers you an opportunity to earn extra income.
If your work is not stable, perhaps you should consider switching to a career that will ensure better job security for the long term. One way is to go back to school.
Trade in that Car
Owning a large vehicle may sound cool but since it is a gas guzzler, perhaps it is time to trade this in with a smaller one. The advantage of a smaller car is that you don’t burn that much gas so you don’t have to spend that much when it is time to refuel the tank. With gas prices hitting all time highs, this will become more important.
9. You can cut down your electricity expenses by replacing the incandescent bulbs with LED’s and those that use lower wattage. You may also want to turn the heater down by one degree, re-insulating the ceiling and stop drafts coming from the windows and doors.
10. Cutting down expenses is just one way to survive a recession. You can make money from by selling some old stuff or renting a spare room.
A recession lasts for months or years so you have to know what to do when it happens. Your ability to stay financially stable is the only way for you to deal with a possible loss of income and inflated prices.