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The global economy is always in a pattern of ups and downs. However, the downs are often
difficult to navigate, especially for those of us who don’t have a sizable savings. Fortunately,
there are ways to get ahead of a recession so that you can safeguard your finances until the
economy re-stabilizes.
ScoreNavigator shares as a resource for those looking to guard themselves against an
economic downturn.
Create (and live by) a budget.
A budget is a guideline by which you spend your money. All families (and businesses) can
benefit from knowing how much money is coming in, how much is going out, and where
spending may be altered. ScoreNavigator has a built-in budgeting tool where you can enter all of your income and expenses while the system generates your debt to income ratio, allowing you to see where you can make improvements.
Consider launching a recession-proof business.
While there is no such thing as a business guaranteed to thrive, you do have options if you plan to start a business while facing fears of recession. A few options here include vehicle repair, child care, and freelance services. Automotive repair is important during a recession as people tend to fix instead of buy. Launching a child care agency gives you a chance to nurture young minds while providing a safe and stable environment they can be while their parents work to make ends meet.
Take a closer look at your investment portfolio.
If all of your money is currently sitting in savings, it’s time to let it grow. There are many ways to invest, and property is often a smart choice. DoorLoop suggests many different locations,
including Nashville, TN; Tampa, FL; and Austin, TX.
Pay down your debt.
According to LendingTree, the average credit card rate in the US reached nearly 23% by the
end of 2022. This means you can expect to pay back $123 for every $100 you use in credit.
While this might not sound too scary now, if your income gets cut because of job loss, you may struggle to meet your monthly payments. Compounding interest will only add to the problem, and you may find yourself buried in more debt than you can repay.
Get a part-time job.
While you’re likely already busy, if you can pad your savings now, you’ll be in a better position to invest or to have a cash reserve that will help you during an economic downturn. Whether you are a full-time parent, established professional or a recent university graduate, socking away a few dollars here and there is never a bad plan.
Before contacting potential employers, it’s always a good idea to have a slick and professional-looking resume at the ready with all your updated information, including work history and accomplishments. You can use a resume builder for free, using well-designed templates to customize your document with your choice of color schemes, text, and graphics. Once completed, you can both print out to hand out come interview time, or send as a digital file.
Change your living arrangement.
If you’re currently living alone, consider splitting the bills with a roommate. This might be
someone that you know, such as a friend or family member, or you can partner with a roommate finding service to match you with the perfect person with whom to share your home or apartment. There are pros and cons to this arrangement, however, and Rent.com explains that these include saving money and getting a helping hand around the house on the plus side and the potential for missed payments and annoyances on the downside.
No one is guaranteed personal financial freedom forever. However, if you are looking for ways to avoid a major interruption to your spending habits in case of recession, today’s tips can help.
From starting a business that likely won’t be affected to using a spreadsheet/PDF budget to
track your expenses, we must all do what we must to protect our personal finances.
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