The Wealthy Nurse's Guide to
Recession Proofing Your Finances
Table of Contents
You Need To Save
Saving money may be a true challenge when your budget is tight – an unforeseen expense here, another there; and oops there's no income left to save. If you're sick of having to dodge saving, then this is for you! Keep saving easy by taking yourself out of the equation. Utilize your bank's auto-draft feature to schedule steady transfers from your checking account to your savings account. Then, take it easy; and let the bank manage all of the particulars for you.
Cut Down Spending
Cutting down on your spending does not have to mean lots of giving up of things. Try out a few of these painless costcutters, and observe your spending reduce to a more comfortable level. Fancy Name brand products are great, but regular store brand products are frequently even as good (if not one in the same).
Pay Debt
A recession is not all sorry news. Since rates of interest tend to go down during recessive periods, your debts will cost you less; and your debt repayment dollars will go farther. It’s a good time to pay down charge card debt. Look over your budget, and ascertain if you are able to afford to use more money to pay off your debt. Likewise keep an eye on the mortgage rates. Now may be the time to refinance to a lower interest rate and a shorter mortgage term.
Put Stuff In Reserve
Prices may be a bit irregular during a recession. The resolution? Establish a reserve of sale-priced foods and commodities, and you'll only have to purchase when it's a good deal for you.
Make Do
No need to purchase new when you are able to make do. Consume leftovers; discover substitutes for items that you've run out of; find new uses for the things that you already have; and you'll keep that shopping list withering month after month.
Make It Last Longer
Pinch more life out of everything that you own, and you won't have to pinch as much income out of your budget for replacement items.
Make Sure You Keep Your Income
The most important thing you want to do is protect your income. If you work for or own a company that’s going to feel very little issues as a result of a recession you've very little to worry about. Irrespective of what company you work for, all the same, now is a capital time to begin making yourself indispensable. It’s simple fact that the employees that are the 1st to go when lay-offs happen are the ones who aren’t viewed as crucial enough to stay.
Create Another Income Stream
Produce another income stream, even a little one. Perhaps you take a second job for a month to pay off a credit card or perhaps you sell your baseball cards on EBay or perhaps you find another way to begin a small business on the side. As the economic system moves closer and closer to a worse situation, we’ve seen many layoffs happening. How do you protect yourself and make sure you have a little extra coming in?
Consider Your Home
Your mortgage payment is probably your biggest monthly bill. Reduce your mortgage with one of the many options including downsizing, doubling up, renting, refinancing or even foreclosing. Assuming you can't sell your home... here are some ideas If you purchased your home with 0% down and it’s worth less than your real estate loan, then your most beneficial option is to just foreclose.
Consider Investments
Move your investments to lower-risk securities like bonds during the market shakedown, than move back to stocks after the market hits the bottom – in a couple of years. A different option is to invest in commodities like gold, silver, wheat and corn, which are bringing back high profits, but they're also very risks, so be heedful and don’t bet the farm.
