How to Act During a Recession
Setting up a crisis saving fund will be very helpful, especially when there is a recession. This will help you to survive several months without worrying if you still have money to purchase things, particularly when there is an economic, down turn.
But when it effects you, cleaning up your balance sheet is just one way to survive the financial crisis. To help you along, here are a few other ideas which you may find handy.
In 2008, the unemployment rate increased by 6.1%, its highest level in 5 years. The last time it hit this mark was in 2003 as the economy was still recovering from the 2000-2001 recession. Job cuts happened in the airline, travel, retail and service industries, just to mention a few. If you happen to work in one of these industries, you should maybe contemplate a career move, to an occupation that is more secure, even if it means getting re-educated.
Going to school is not an option if you are rearing a family. The next best thing to do will be to take on some extra work. Just make sure that the extra work, does not affect your primary job, otherwise, you could lose it.
Most Americans have invested in the stock market and if you are one of them, don’t worry and think about selling it, just because times are hard. You have to keep in mind, that a recession is recurrent so your portfolio will recover in the future. You just have to be patient, because it is going to take many months, before everything is back to normal.
But if you do have the extra funds, now is the best time to buy stocks and bonds. Why? Because these are reasonably cheaper and you can make a profit, when the economy is back on track.
Besides going back to school and getting a second job, maybe you can use your expertise's and offer them as a service to others. If you enjoy cooking, make some pastries and then sell these to potential stores. If you are good with your hands, maybe you can help fix leaks, should your neighbor have a problem with their plumbing, or other household maintenance.
If you own an SUV, trade it in for a small vehicle because you use less fuel, with a smaller car. If you have the money, see if you can get one that is a hybrid because besides from using less fuel, you get tax breaks for investing in alternative forms of energy.
When you go to the supermarket, only buy the essentials. Resist the temptation, to buy items that your children want. If you can’t say no, try to get a similar brand that is the same, but cheaper, as what they want.
Finally, we all have expenses to pay monthly. If possible, change to better and more affordable services, because each penny counts during these bad times.
There are other ways to survive a recession apart from those listed above. By following these tips and getting help from a financial expert, you are certain to wither out this storm. Until that day arrives, you shouldn’t live in fear, but rather make the most of it , because this isn’t the first time that you will face a recession and it definitely won’t be the last.
Want more ebooks, which you can read, on the Go, with many useful titles and a Free signup, then check out this Great new membership website at ebooks4mobile.com
Source: Free Articles from ArticlesFactory.com
ABOUT THE AUTHOR
I have been working online for about 16 years. Have useful skills in web development and at the moment, particularly interested in ebook membership website management. Please visit ebooks4mobile.com for more details, FREE signup available. Have a good Read and stay in the Lead, cheers Don DocRabbit(ARR) :)
Publishing of my articles allowed, but please include my website url, for a backlink.