Economic recession is the major problem faced in today’s world. It results from financial crisis, unemployment, and market profiles. This financial situation may last for a few months to years. Follow these tips to survive in economic recessions. Here are the top ten tips how to survive the recession.
Be debt free: Clear your debt as soon as possible. Take the help of a financial consultant to plan an effective strategy. Prioritise your debts. Pay the high interest rate first. If you can’t repay the amount go for debt consolidation. Talk to your lender and consolidate your debts. By this way you can quickly repay all your debts.
Reduce your expenses: You need to eliminate unnecessary spending’s. Shift to the cheaper electricity consuming appliances. Research to find the inexpensive gas, mobile phone, electrical appliances. Minimise your daily expenditure. Switch off the lights and electrical appliances when not in use.
Go for discounts and offers: Reduce your shopping expenses. Buy in bulk which saves your money. Find out the best deals and discounts. Take the advantage of coupons. Find out the free vouchers. Several stores offer discounts to promote their new products. Take the advantage of the situation.
Upgrade your skills: You need to maintain your job in the recession period. This should be given high priority. Upgrade your skills and perform well to prove yourself. Work hard to sustain in your job field. Earn extra income. You can take up online jobs like blogging, freelancing, e-tutorials, and auction sites.
Stress management: Don’t panic. Instead of being worried, think about the alternative ways to overcome the situation. For example if you are in debts switch to the 0% transfer credit cards. Citibank, Nab etc. Will not charge the interest rate for six months. So you can utilise this period to pay as much debt as possible.
Payment protection insurance: Identify whether you have payment protection insurance or mortgage protection insurance that comes in connection with loans and credit cards. You can refund the total amount paid with the help of PPI claims.
Savings: Don’t stop your saving’s. You can make the slight changes in your emergency fund. Having 6 months of saving plan is reasonable. Know about the home equity credit. During the economic recession value of your home decreases. As your credit lender to reduce the total amount in such cases.
Know your spending’s: keep a track of your expenses. Identify areas of cash flow. Cut down your expenses on those needs. For example if you dine out frequently, reduce your food bills. Start preparing your own food at home. You can not only save money but can also stay healthy.
Plan ahead: Expect the economic downtimes and plan accordingly. You need to have a recovery plan to manage those circumstances. For example eliminate the redundancies in your business. Identify which staff members should be reduced or increased instead of hiring freelancer.
Invest in assets: Instead of being depressed about the situation, take the advantage of it. For example start investing in long term assets like home, jewellery etc. This benefits you in future. When economy is booming you can gain the huge amount on assets invested.