The term ‘recession’ really throws a scare into people. It doesn’t have to be that way though. Many fears can be put to rest if you just know the principles of becoming recession-proof.
The most common sense move is to live within your limits. Never go into debt just to satisfy a whim. Debt is like a sink hole, once it gets started it seems to grow rapidly. Credit cards are something that definitely need to be used wisely. More people are in debt because of the misuse of credit cards than most anything else today.
If your family is a 2-income family, then you should try hard to live off of just 1 income, and save with the other. Anytime you can tighten your belt and free up an income stream, you will be making progress in the right direction.
Today we have the Internet, and many people are learning about multiple income streams. When you create multiple income streams, then you won’t have all your eggs in one basket. If something should happen to an income stream, say it just falls through, then you aren’t wiped out because you’re not totally dependent on that income source. The world has changed dramatically, and job security is not as solid as it once was. You need several irons in the fire.
Good financial planning is another tool for making yourself recession-proof. Having good vision for the future and your investments, can be a solid cushion against rough times. The economy dips and rises as a matter of course, and when you plan for the down times, and weather them, the down times don’t last, and the economy improves again. You just have to be prepared for the slow periods.
People who are approaching retirement age should look into moving their money into investments that are lower risk and more liquid. There is plenty of help available today for anyone to learn about good investing.
I know this gets said time and time again, but it’s because it’s good advice – Diversify your Portfolio. Again, it is always best not to be depending on any one type of financial stability. Keeping money in different types of investments will shield you against big losses and keep your stress levels down. You don’t have to be any kind of financial wizard, just add some variety to your investments.
One of the best things anybody can do for themselves, especially in recession times, is to have a good credit score. Obtaining good credit is hard enough during a recession, and it could mean the difference between going under and staying in the game. Always pay your bills in a timely fashion, and keep those credit card balances down.
Build yourself an emergency fund. Use the money from one of your income streams to achieve this. All good financial planning calls for having an emergency fund. Life happens to everyone, and many times in unexpected ways. These are all very solid tips to help make sure that you are recession-proof. Nobody wants to be ruined financially, when all it takes is some careful planning and a little foresight.