by admin

We are living in very volatile economic conditions, given that the U.S. economy is most probably in recession. Most people are worried about rising commodity prices and getting laid off at work. Fear is the general emotions and most probably what drives most personal and business decisions.

However, in a recession, it is important to keep calm and continue to make rational moves and decisions. Yes, recession and the current economic conditions will affect companies and individuals, but it is survivable.

1. Save up on cash. During fragile economic conditions, cash and liquidity is important. You need to have a reserve fund to protect you from sudden events and circumstances. It is important to have cash worth six months of living expenses so you can ride out your circumstances.
2. Another way to recession-proof your life is to save on gas and fuel. Fuel prices continue to rise and spending $500 a week on gas is hardly economical. Gather your friends and start car-pooling. Moms and wives could gather together and have weekly grocery shopping sessions. This would save on gas and errands expenses.
3. Eat at home. When earnings are tight, lessen dining out. Preparing your meals at home saves money rather than spending on Big Macs and Starbucks lattés. This could also be the start you needed to get back on your diet program.
4. Another way to recession-proof your life is to make sure you have steady earnings. And the best way to do this is to keep your jobs. Layoffs will start in the first quarter of next year. Do you best to show your boss that your position in the company is crucial and that he or she should keep you. Show excellence in your tasks and responsibilities.
5. Find alternative source of income or earnings. You can use the internet to your advantage. Put up a blog and start generating from ads and affiliate marketing. It may not replace your monthly salary but every dollar earned is a dollar saved.
6. Deal with your credit card debts. This is important not only during recession but in all economic conditions in general. Paying credit card debts make your credit history good and will help you to have an easier time when you are applying for loans. Also, when you have all your credit card debts paid up, your monthly earning can go to savings rather than paying interest rates.
7. If you are laid off, do not be afraid to avail of government welfare. Avail of unemployment benefits while actively seeking a new job. Dust off your resume and update it with recent job experience.
8. If you have no plans of retiring soon, do not touch your retirement fund. In efforts to recession-proof your life, you just might empty out your funds for a comfortable retirement.
9. If you have your own business, one way to recession-proof your business is to diversify. Create new services or products to lure in more earnings.
10. Investing in stable companies is a good long term decision. You may not get immediate huge returns but having stock in a company that’s going to be in it for the long haul is the way to go to recession-proof your life.