Recession-Proof Your Life With These Tactics
With the current economic uncertainty, it’s important to know how to not only survive but thrive if we end up in a recession. By taking the following proactive steps, you can confidently brace yourself for these hard times and stay resilient no matter what the economic future might hold.
JST Investment Consulting has compiled a list of tips and tricks that will help you make it through this difficult time.
Overhaul Your Family Budget
One of the most important things you can do when trying to recession-proof your life is to learn how to manage a household budget. This means tracking your spending, setting goals for saving money, and creating a plan for how you will pay off any debt. Doing so will help ensure that you are able to keep up with payments even if the economy takes a turn for the worse.
Get Rid of High-Interest Debt
If you have high-interest debt like credit cards, now is the time to start paying them down as much as you can. Not only will this help free up additional funds for other expenses, but it will also decrease the number of interest payments needed each month. This proactive approach can provide security during difficult economic times and can ultimately save you money in the long run.
Get a Home Warranty
Investing in a home warranty can be a great way to protect your assets during challenging economic times. It can help cover replacements or repairs of malfunctioning appliances, electronics, or normal wear and tear on your property. This protection can save you money over time—potentially hundreds or even thousands of dollars that would have been spent on unexpected repairs.
Refinancing your home when a lower interest rate is available can be an incredibly effective way to recession-proof your finances. Not only could it save you money each month, but having a lower interest rate also reduces any long-term financial burden associated with owning property during an economic downturn. A well-thought-out plan of refinancing coupled with budgeting and savings can help protect you from the instability of a declining market.
Make Purchases Carefully
When considering major purchases like cars or electronics, it's important to read reviews from multiple sources. Taking the time to do your research can help you get the best deals while also avoiding any unexpected pitfalls when it comes to quality and price. Make sure you look at more than just one source to ensure that you are getting accurate and up-to-date information on the product or service before making any decisions.
Boost Your Earning Potential
Pursuing an online degree in a field that aligns with your interests or career goals may be the key to boosting your earning power. With IT certificate programs, it’s not only possible to open up new job opportunities and diversify your skillset, but it can also provide additional security in case of a recession. Investing in your education can be one of the best decisions you make for yourself and your future career.
Manage Your Anxiety
It's understandable to feel anxious when faced with financial worries during economic uncertainty. However, it is important to take care of yourself and those around you by looking for ways to manage your fears. Talking with friends and families can provide valuable insights, and books about personal finance can help educate on the topics. It may also be worth seeking professional help if needed.
Recession is an inevitable part of the economic cycle, so it’s important to be prepared for it. Taking deliberate steps now can make you more resilient should a recession come. This includes going back to school to build your skills, managing major purchases more effectively by thoroughly reading reviews, and actively sticking to a budget. Though preparation isn’t enjoyable, being proactive now can help you better weather any future recessions.
This article was written by our featured contributor, Sara Bailey of Thewidow.net. As a widow and mother of two, she knows from experience how important it is for parents to have a strong financial plan.
Excerpt from Thewidow.net: “Like many people who have lost the love of their life, I never in a million years thought I’d be here. On my 40th birthday — which I spent with my husband and our two kids bowling, devouring cupcakes, and laughing more than I ever thought was possible — I never dreamed that by my 41st, I’d be a grieving single mom raising a son and daughter on her own. But here I am, and with each passing day, I get a little stronger, and life gets a little easier.” If you or you know someone who may be facing similar challenges, please visit Sara’s website for support.
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JST Investment Consulting does not provide tax or legal advice. The information presented here is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable. The information in these materials may change at any time and without notice.