The unending economic woes should not be cause for worry to anyone armed with the tricks of surviving in hard economic times. Surviving in economically challenging times involves a proper combination of expense cutting strategies and income boasting mechanisms. The strategies and mechanisms to be recession proof in these gloomy economic times are listed below.
Budget
Knowing the importance of budgets in facilitating financial soundness is the core secret to staying above the recession flood. The ideal recession budget should be one that primarily focuses on reducing costs. Some health coverage costs and other unnecessary costs spend on groceries and household items should be struck off one’s recession budget. In case of necessary health coverage like dental coverage and necessary grocery purchases, cheaper options should be obtained. It’s advisable to look out for discounted coverage plans and free coupons on groceries, toys, clothing and other household items.
Track expenditures
The next logical step after budgeting is to track expenditures to see whether they are in line with the budgeted estimates. In case they are in line with the estimates this shows an improvement in expense cutting strategies and a higher chance to survive the recession tide. In situations where current expenditures are further deviated negatively from budgeted amounts this signals the need to develop more workable strategies. Strategies will only be workable if discipline and sacrifice are infused into spending patterns.
To properly track expenditures it will be better to purchase using debit cards instead of cash. A debit card keeps record of all monthly expenditures.
Manage credit situation
Debt is one of the roadblocks to happy living during recession times. Simple measures like suspending the use of credit cards for sometime will help ease the debt burden. If it becomes necessary to buy on credit requesting for a Home Equity Line Of Credit (HELOC) from one’s mortgage lenders will be of great aid. HELOC is offered by popular banks like Bank of America and allows one to carry out large purchases on credit. To further manage one’s credit situation the available assets should be used to offset bank loans and other debts.
Research on income sources
During recession times many jobs are lost as companies cut back on their employment budgets. Researching on recession proof careers and industries is a proven way to find a well paying job during recessive times. Part time jobs will also help supplement one’s main income during hard economic times. These jobs may include singing, writing, dancing among others.
The recession period can be a bitter experience to all without sound financial plans and proven survival tactics. It simply takes a well defined budget and a steady income source to be recession proof and have a happy life when many are having bad times.
This article is a copyright of Emmanuel Kigen
