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Posts Tagged ‘savings’

Tips for Surviving the Economic Recession

By On October 23, 2011 No Comments

The effects of current economic recession are felt by almost everyone. While the impact of this downturn may vary from one individual to another, many have experienced some sort of difficulty in managing their personal finances. Whether it is curtailing expenses incurred on entertainment, evaluating food expenditure, altering spending habits, using discount coupons, selling an asset, putting off retirement, reviewing market, reexamining portfolio allocations, obtaining personal loans or other things, people are making some kind of change to cope with the current economic situation. It is important to make these changes quickly and stick to them even when your financial position improves.

Recession has taught us many lessons, and it is imperative that you keep them in your mind and make necessary adjustments so that you can face any future financial problem caused by economic meltdown without major difficulty.
Jobs are no longer guaranteed. Whether you are currently employed or seeking a job, there are only few jobs left that are considered safe. It is high time that you realize that a job is not a right anymore, it is a privilege.
Your home is your responsibility. Like any asset, homes cost money, but there is a bigger social obligation on your part to safeguard this valuable possession of yours even when your financial condition is tough.

Perhaps living paycheck to paycheck isn’t a feasible option anymore. While many people still do it, either by their own choice, or they have no other option, the consequences of living paycheck to paycheck are not that heartening as more and more people doing so are losing their homes and other assets.

Setting up an emergency fund is highly recommended. The time is now for you to open a savings account and deposit a percentage (whatever you can easily afford) of your paycheck in it. Review all of your home expenses, make a diy home improvement and repair checklist of things you can do on your own to save money around your home.

Check your spending. Make a list of things on which you spend your money. You can easily reduce or eliminate spending on certain items that you can do without.

The recession people are facing today is not the first one to happen, and it would not be the last. It is important that you realize this fact immediately and start planning for the next one.

It is vital that you learn from the hardships of living through an economic crisis this time and don’t forget how things can immediately turn bad during a recession. Many financial experts advise that people should plan ahead in order to deal with the effects of a downturn easily and quickly.