How to Become Financially Stable
During This Recession
By Cindy Payne
Times are hard, especially as we’re experiencing a recession. Yet, if we are diligent and intelligent, we may be able to rise above the difficulty of a recession and actually be able to thrive. We just have to know what to do, and how to do it. We can stand in the pits of this financial crisis and say to the world, “show me the money,” and we will see it.
If you have been affected by a recession, then you understand the downfall and the consequences it leaves. However, there is still a way to be able to survive this catastrophe with your assets intact. It just takes planning and executing certain strategies to help build up your finances and keep you stable during this time of recession.
- Stay Positive, Don’t Panic
This may sound strange considering you’re in the middle of a crisis, but staying positive and remaining calm is always the best move in any situation. Panicking will do nothing but create excess stress in your life. It can alter how you make decisions and cause you more harm than good. It is also very contagious. If you are panicking about a situation, it will spur on more stress to your family and ultimately to your work and everyone else around you. Nothing is achieved by this and you are still in the same predicament as before.
In order to push through the recession with your finances intact, you need to eliminate the negativity and focus on what you can do. This will keep you active and help to reframe your thoughts, especially as you begin the next step.
- Devise a Budget and Spending Plan
If you don’t have a budget, then it’s time to devise one and be serious about following it. Though it can be challenging to maneuver your money around to try to cover your expenses, budgeting is the one way you can fully understand where your money is going. Knowing where your money goes is the first step of being able to control it.
1. Start with Taking Care of Your Necessities
There are always payments to be made and expenses that add up on a daily or monthly basis. These may include a mortgage or rent payment. You have to have somewhere to live. There are also utility bills to pay, and buying food for yourself and your family. These are the priorities in your life. You can’t stop paying for or buying these and still live practically. They are crucial for success.
2. Ensure Any Debts are Controlled
Debts can certainly become out of control during a recession. However, keeping a high level of debt can be detrimental when things are conditional and uncertain. Any change to your lifestyle can affect your ability to pay your debts.
Do your best to steadily pay your debts. Try not to be late so there are no negative marks or extra fees to compound the situation. During a recession, it is possible for interest rates to spike or unemployment rates to increase. This can have cause terrible consequences for you if you are not keeping up with your own debts.
3. Live Within Your Means
It may be necessary to downsize and learn to live more frugally. Learning to live with less in your life may increase your savings. This will keep you from struggling should another crisis occur and your lifestyle is changed even more.
To live frugally does not always mean depriving yourself of the necessities or things that make you happy. It means to carefully consider the purchases you make and cut back on optional expenses.
This is the perfect time to fully understand how your money is used and what your goals and values are as a person and a family. Once you can grasp that notion, it will be so much easier to live during the recession with your finances intact.
4. Manage Your Savings and Your Emergency Fund
With a recession, it is likely that your job or income may be placed in jeopardy. This may be the time that an emergency fund would come in handy. Usually an emergency fund is saved for unexpected disasters or financial difficulties. It can be very easy to take all of that money and not have to deal with any of the oncoming consequences. However, that is not a good plan.
Do your best to live off the money you have coming in if you still have your job. If possible, trying to secure a few dollars to keep up your savings. You don’t want to be caught without a backup plan if a recession starts again.
5. Make Use of Apps and Budgeting Tools
With all the resources that are available on the internet nowadays, there are apps and websites galore that can help you with keeping your finances stable during a recession. Do your research to check out various professionals who can keep your mind and your monies focused on living successfully during this hard time. They may be able to show you things you never thought of or knew about.
With a recession, there is no control of the outlying factors in our lives. Therefore, in order to combat any consequences that may come out way, we need to practice and implement good financial skills to succeed in our day-to-day lives. By using these guidelines, it is possible to keep your finances secure.
About the author:
Cindy Payne is a successful blogger who talks about finance, and investment on her blog. Cindy also submits guest posts to websites that are focused on the same topics as an attempt to reach more readers. Cindy has three cats at home, and loves to spend time with them when she’s not too busy writing.