If you were around about a decade ago you will remember when the recession hit and if you were taken off guard than you are probably worried right about now. You are not alone, a lot of people are nervous about their finances or their financial situation. Well if these sentiments resonate with you, then this is the post for you. In this post I will be sharing some ways that you can recession proof your finances to weather anything this pandemic brings your way financially. You can thank me by dropping a comment to bring me some encouragement because if it were ever a time that we all need to pull together it is now. So that lead me to suggestion number one…..
1. Lean on Your Support System We need each other in times of trouble and hardship. You will never know if your support system is functional if you never ask them for help. You may have a family member or friend that can loan you some money or better yet, give you some money to help you now that times are getting hard for you. I get it, if you are anything like me, you rather not ask, but if you are about to lose everything than throwing away your pride might lead to you being saved from an awful situation. You never know if someone will help you until you ask. Many people don’t know what you are going through especially if you are the type of person that keeps your financial situation to yourself. But remember these are suggestions of if that one doesn’t work for you keep reading I have more!
2. Cut Spending Wherever You Can Now is the time to reevaluate what you can do without. For instance, you may want to get rid of a cell phone plan that you are currently on and get a plan that is cheaper. Maybe you child can do without piano lessons until you get into a better situation and then you can resume paying for that. I don’t know your financial situation, only you know what you can do without. Desperate times call for you to adapt. Write down all your expenses and see where you can cut down and free up more money for necessities like food and utilities. Now is the time to use coupons and discounts to and buying food and necessities in bulk will help stretch your paycheck as well.
3. Change Your Living Situation Okay now this is a tough one because there are a few ways you can achieve this change. Keep in mind, this is a big change for most people especially if you have your living situation all figured out you may want to keep things the way that they are, but these suggestions are for those of us who can do this and it will improve our financial situation.
For example, if you have a second bedroom that is unoccupied you can get a roommate to occupy it and help share some of the living expenses. Of course you need to be careful who you chose because some roommates can be a headache so be wise about this option. You don’t want to end up supporting another person that would defeat the purpose of getting a roommate.
Another suggestion is to downsize to a less expensive dwelling, like move from a two bedroom apartment to a one bedroom apartment. Not only will the rent be cheaper the utilities may be less because of the smaller square footage.
You can also move in with someone, for instance some people are able to live with their parents or other family members until they are in a better financial situation. This is another suggestion that will not be for everyone the point is to reevaluate your living situation and see in what areas can you boost your financial power and some people feel living with others make them powerless but it’s up to you to decide what is beat for you. I think I have spent quite a bit of time on this so let’s move on….
4. Manage Your Debt
This is a great idea to weather a recession or downturn in the economy. If you have high interest credit card you should pay them off to avoid paying more money than you have to in the long term. You can also get into a debt management program to help you protect your credit rating in these trying financial times. Now may be the time to refinance loans as well.
5. Make a Budget and Stick to It
If a person is bad with managing their finances it is always a good idea to sit down and make a budget. Even if you are bad with this you can usually find someone who will help you with formulating a budget, but the tough part will be sticking to the budget. A lack of self discipline and self control can often be the very reason that people get into financial trouble in the first place. I would never advise an adult be treated like a child but in the midst of a pandemic that is devastating personal finances you may have to get creative. I dare say, some people may need to ask another responsible person to help them stick to their budget. You may just need encouragement to get the fortitude that does not come from within. Remember, these are just suggestions which mean you can take them or leave them.
6. Now is the Time to Become Creative
What do I mean when I say now is the time to be creative? I recently did a post named, “Lost Your Job during the Pandemic? Here Are Some Jobs That You Can Try Transitioning To” and I gave five jobs you can try if you are unemployed or underemployed due to the COVID-19 pandemic. I am a person that would like to encourage everybody not to put all your eggs in one basket by trying to do the traditional things you have done financially. If you want to know what jobs I suggested you should check out that post, because in this post I am giving you a few more “radical ideas” to make money. Are you ready, here they are…
Start a You Tube Channel
Believe it or not, this option may be for you. Some of you have dynamic personalities that will translate well on a screen. You may want to start a channel where you cook your favorite recipes or show your home decorating skills. You can monetize your channel to make it another way you can have a full time job or a side hustle. This is the perfect time to do it as more people are home and therefore turning to You Tube for entertainment.
Branch Out To Freelance Writing
This is the route many writers are turning to. Its perfect because many people have personal computers and have opinions. Well why not make money writing for established blogs? Another related idea is if you have any old screenplays, now is the time to sell them as companies like Netflix are asking for scripts, there is a demand for them.
Some companies recruit people to sell their goods and you will get a portion of the profits. This can be a good way to get some extra money. But with this option you have to be careful not get scammed. Remember you shouldn’t have to spend money to make money when you are selling items for another company. This is an option that is usually predatory in nature so beware if this is the case it may not be for you.
7. Update and Network Now is the time to dust off the ole resume and update it just in case you need to go back into the workforce. You should add any courses you may have taken and didn’t have time to add it. You should also take the time to network just in case you have to look for new employment as well.
8. Become More Spiritual
This last option will definitely not appeal to everybody but if you are a spiritual person you may find comfort in leaning on your spirituality in these uncertain financial times. Some people find affirmations have lead to them having an increase in funds. I understand if you don’t believe affirmations work, but there are plenty of people who will attest to them being a powerful tool in their lives.
You can also pray, which works for me. I believe that God is in control and He always looks out of his child and He is always moving in ways that benefit me financially. If you are not a believer I am not asking you to become one now, but if all else has failed why not try something different?
So these suggestions some ways you can prepare for a downturn or a pending recession. Will you or have you already tried some of these suggestions? Drop a comment, and know that you are not alone and together we will get through this just keep positive and don’t give up!
What are your thoughts?
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