By Michael Longsdon
Does the idea of a recession frighten you? Perhaps you’re nervous about losing your job in Baltimore or taking a cutback in your income. If so, then take steps to recession-proof your life and find a bit of security. Read on for some tips to get you started, courtesy of Own Your Defense.
Create a Budget
First, create a household budget, or update the one you have. Make columns for your current income and expenses, and see if they balance. If you’re in the black, excellent. You might be able to do some saving to tuck a little extra money away for security. If you’re in the red, you’re going to have to make some cuts. Start by cutting back on your entertainment expenses each month. Look at your cell phone plan and utilities costs, too, and see if you can tighten things up.
Also, if you have loans, see if you can use refinancing to reduce your debts. Basically, that’s when you pay off one loan in order to secure another loan with more favorable terms. This can be a lifesaver in terms of improving your credit and reducing interest rates.
Spend Wisely
Whether you’re in the black or in the red, as a recession threatens, you need to learn how to spend wisely. Don’t purchase what you don’t really need. Before you buy anything, step back for a few moments, and ask yourself if and when you’re going to use the item and whether it’s a good value. If you must make a purchase, do your research first to make sure you’re getting the most for your money. Read reviews from consumers and experts so you can choose products that will last and be worth their cost.
Add a Second Job
Perhaps you’d feel more secure about a recession if you had a little extra income. In that case, consider adding a second job if possible. You could look for a freelance position that you can do online in your spare time. You might also apply your repair, accounting, or pet-sitting skills to a new business of your own that can be a profitable side job. Whatever you choose, make sure you have an updated resume handy to impress potential employers or clients.
Pay Attention to Your Investments
If you’ve got investments, pay special attention to them when a recession looms. Work with a Baltimore financial adviser to find safe options for your money, and diversify if necessary. Be aware, though, of fees and taxes you may have to pay if you make changes, and weigh each decision carefully so that your investments are as secure as possible if the economy takes a downturn.
Manage Your Stress
Finally, financial details can be stressful at any point and much more so during difficult times. So, find ways to manage your stress and anxiety. You might learn some meditation, music therapy, or guided breathing techniques, for instance, so you can calm yourself as the tension rises.
Survive a Recession
You can survive and even thrive during a recession, provided you take steps to recession-proof your life now. Create a budget, learn to spend wisely, look into refinancing, add a second job or find a new one, pay attention to your investments, and manage your stress to build your confidence.
Own Your Defense is a free resource for protecting your assets. If you have any questions, please email [email protected].
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