Recession, depression, stagflation, financial doom, financial hardship, economic collapse, or whatever word crosses your mind when you watch the news and read the paper - it's here.
So now, what do you do about it? Here are five basic and sensible financial management strategies to help you.
1.
Be Frugal.
Yes, frugal.
I believe having a frugal foundation to your everyday life is what will allow you to come out ahead when this economic recession is over.
The basics are this: spend less than you earn, buy only what you can afford in cash, cut your monthly expenses by reviewing your checking/credit accounts and creating an accurate budget, reduce your debt by not incurring any more, and make every dollar count (know where your money is going and where it fits into your accurate budget).
2.
Improve Your Investment Strategy.
Invest for the long term and diversify.
3.
Establish an Emergency Financial Plan.
If you lost your main source of income today, what would you do? How long can you stay afloat without that incoming money? Can you protect your assets? Do you even know what your assets are? Do you have alternative sources of income? Do you have other jobs or freelance assignments lined up in case of an emergency? Does your entire family rely on you for emergency cash as well? Answer these questions and get it figured out now.
You never know what tomorrow may bring.
4.
Protect your job and increase your marketability.
Most people only receive income from one source - their job.
But what happens if that job is gone tomorrow? How easily can you get a new one at the same pay? Is you're resume' up to date? Could you take any courses or get a degree or certification that will improve your skills and marketability for a new employer? Help your current company increase profits and decrease expenses.
Make sure your work gets noticed and everyone knows how important you are to the company.
5.
Added additional sources of income.
When investing - diversify.
When making money - diversify.
If one source of income disappears, you have others.
You always want multiple streams of income.
Your job, your boss, or your boss who loves you won't be there forever.
In an economic recession, this is one of the best times to learn this true fact.
Don't rely on others to take care of you and your family because in the end, the company is only looking after their own profits and sustainability.
Look into how to monetize from your skills or explore other niches.
Can you freelance or take side gigs? Start your own business part time or learn a new skill that you can earn money through.
Gain an additional certification in your field of study/work by in a different area so you can work in a similar field.
So now, what do you do about it? Here are five basic and sensible financial management strategies to help you.
1.
Be Frugal.
Yes, frugal.
I believe having a frugal foundation to your everyday life is what will allow you to come out ahead when this economic recession is over.
The basics are this: spend less than you earn, buy only what you can afford in cash, cut your monthly expenses by reviewing your checking/credit accounts and creating an accurate budget, reduce your debt by not incurring any more, and make every dollar count (know where your money is going and where it fits into your accurate budget).
2.
Improve Your Investment Strategy.
Invest for the long term and diversify.
3.
Establish an Emergency Financial Plan.
If you lost your main source of income today, what would you do? How long can you stay afloat without that incoming money? Can you protect your assets? Do you even know what your assets are? Do you have alternative sources of income? Do you have other jobs or freelance assignments lined up in case of an emergency? Does your entire family rely on you for emergency cash as well? Answer these questions and get it figured out now.
You never know what tomorrow may bring.
4.
Protect your job and increase your marketability.
Most people only receive income from one source - their job.
But what happens if that job is gone tomorrow? How easily can you get a new one at the same pay? Is you're resume' up to date? Could you take any courses or get a degree or certification that will improve your skills and marketability for a new employer? Help your current company increase profits and decrease expenses.
Make sure your work gets noticed and everyone knows how important you are to the company.
5.
Added additional sources of income.
When investing - diversify.
When making money - diversify.
If one source of income disappears, you have others.
You always want multiple streams of income.
Your job, your boss, or your boss who loves you won't be there forever.
In an economic recession, this is one of the best times to learn this true fact.
Don't rely on others to take care of you and your family because in the end, the company is only looking after their own profits and sustainability.
Look into how to monetize from your skills or explore other niches.
Can you freelance or take side gigs? Start your own business part time or learn a new skill that you can earn money through.
Gain an additional certification in your field of study/work by in a different area so you can work in a similar field.
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