5 tips to recession proof your finances
When it comes to the economy, you don’t have a choice about when a recession will hit. But just because a recession comes, doesn’t mean you have to participate. Use these tips to recession proof your finances. Learn more in today’s blog.
You can’t control whether there is a recession, but your finances will make a big difference in whether you participate or not. You could live paycheck to paycheck and have a lot of debt. That will make you vulnerable in a recession. But there are a number of things that you can do today that will make you less vulnerable to economic recessions. Here are 5 of them.
1. Eliminate debt
One of the most important things to do to recession proof your finances is to eliminate debt. If your income goes down, you can’t just turn off the payments that you agreed to make on debt. You can’t get mad at the lender, you are the one who agreed to the terms when you signed the agreement. To insulate yourself in an economic recession, you need to eliminate your debt before a recession hits. It is easier to make choices that will eliminate your debt before the recession comes. Eliminating your debt also gives you more choices in good economic times. Take my free Debt Relief Workshop to learn more today!
2. Develop a budget and stick to it
The time to get your finances in order is before you have problems. It is much easier to make choices and get yourself in good financial position when things are going well. So don’t wait until you are having problems to develop your budget. A budget will also help you eliminate your debt. You can make good choices ahead of time rather than making poor decisions on the spur of the moment. Just creating a budget is not enough, you also have to follow it. But it is easier to make decisions when you have a plan to follow. If you know you have to give something else up to stick to your budget, you can make decisions that line up with your priorities and still be in budget. Remember that once debt is gone, you can get and pay for exactly what you want when you want it. Get your name on the list to receive weekly help via my Debt Relief Journey blog.
3. Create an emergency fund
Having an emergency fund is important in good economic times. It becomes even more important when you are dealing with a recession. Recessions create enough pressure without dealing with emergencies. You don’t need the additional pressure that an emergency brings. Create your emergency fund before a recession hits. The choices you need to make to create an emergency fund are easier to absorb in good times. Don’t go without an emergency fund or wait until problems come. It will be too late then. Save money for your emergency fund now.
4. Anticipate your big purchases
The more time you have, the less money you need to save every month to make big purchases. When you look ahead, you can anticipate the big purchases you need to make. Once you know what you need and when you need it, you can determine how much you need to save to make the purchase on that timeline. By saving ahead, you avoid having to borrow money. Borrowing increases the cost of your purchase. It also becomes harder to borrow money during a recession. Get rid of your debt, then save money so you can make your big purchases before a recession hits.
5. Develop hobbies that aren’t expensive
Having hobbies that are inexpensive helps your finances during tough economic times. They give you activities that you can continue to do without having to spend a lot of money during a recession. By developing these hobbies while times are good, you can continue enjoying your activities during recession times. This keeps things normal for you when others are giving up their expensive hobbies.
The time to prepare for a recession is before one happens. Use these tips to help recession proof your finances before a recession hits.
One of the best ways to focus your attention on the positive aspects of your Debt Relief Journey is to make sure you have all the tools you need for your journey. Take my free Debt Relief Workshop to make sure that you do!
Sign up for my Weekly Blog which provides you with the specifics for preparing a good budget for your business, if you have one. Share this blog with an entrepreneurial friend!
1. It's your choice whether or not you participate in a recession.
2. Eliminating your debt eliminates fighting with your spouse.
3. You would be amazed at exactly how much money you can save over time.
4. Your savings - no matter what size it is - compounds in a huge way over time.
5. Why saving the expensive hobbies until you are debt free is a good idea.
Article: Emergency fund: Why you need one
If you loved this blog post, get the next one by getting your name on the Debt Relief Journey blog list. Don't miss out.
At www.BudgetingEssentials.com we want to help you become debt free.
Get my Free Personal Debt Reduction Workshop. This workshop will begin to change the way you think about debt and spending For The Better Life you want now!
You’ll be amazed how free you feel without debt! And just imagine the things you could do if you had no debt!
Anything you tolerate becomes normal to you. When you stop tolerating debt, you increase your ability to function without it. You can get yourself debt free. It will take some time, but the time you spend is worth it!- Dan Heiland
Scroll down to the comments and tell me if this post has helped you and how it did!
If you know someone this post will help, please share it with them! If you aren’t already a subscriber, SIGN UP to receive notification emails and information on promotions we run periodically! You can also learn more about personal debt reduction by taking my free online “Debt Relief Workshop” by clicking HERE.
God Bless your week!
© 2019 Dan Heiland 2019 Kat Heil, LLC