(While the economy seems to be on the mend (or at least, that’s all the news outlets keep claiming), there’s still plenty to worry about out there. Even when (if?) the economy gets back to full power, all it takes is a job loss or other money trouble for your personal economy to re-enter a recession. Luckily, we have people like Adana Lima to point out some ways to help you survive the economic storms in life.)
Think things are looking up for the economy? Can see you see the light at the end of the tunnel, now that the papers are talking up growth prospects, and a return to profit? Maybe you’re hoping that this renewed confidence will boost the jobs market – and are looking forward to a return to job security, overtime bonuses and getting life back to normal? Think again.
The recession we’ve just gone through may only be the first, not be the last, in the decade to come. The financial crisis, and the desperate rescue attempts made by the US government, have left the nation enfeebled, and much more prone to further shocks. And the recovery so far has left the jobs market struggling in it’s wake. In fact, the proportion trapped without work, or just in part-time work, is back on the rise. And leading economists also see a bleak decade of growth ahead. In short, you need to accept that the new ‘normal’ may well be stagnation, studded with bouts of repeated recession.
It’s looking like you will need to have yourself tooled up, to get through the tough times. And that means looking at your life through a frugal filter – aiming to save in the good times, so you can ease your way through the bad. So what recession survival tips should you take on board, to ensure you not
only survive, but flourish, in a time of austerity?
The first thing is to diversify your sources of income. Those who pin all their hopes on a single job are likely to be caught floundering, when the rug is pulled in the next recessionary plunge. Rather than pumping extra hours at your current workplace, look at other more flexible opportunities. That could be looking into working from home part-time, via a party franchise, or freelancing. Or maybe you could setup an on-line home business, cashing in on a hobby that interests you.
Even if you can’t find the time to commit to those right now, plan for them, and put the feelers out. It’s also a good idea to follow up contacts at work, looking for other potential job opportunities. You’ll be better placed to jump sideways, if things get tricky. And you will be less likely to be left in shock when the monthly wage check goes up in smoke.
Next, think frugal in your day-to-day lifestyle. Even if your job looks secure, and wages are good, you need to plan for the future; and that may include periods of no-income joblessness. So draw up a budget plan for your current incoming and outgoing cash. Split your expenses into those that are absolute essentials (utility bills, rent or mortgage payments, food bills, car repayments), those that add quality to your life, and those that are just a bit frivolous. Cut the latter out entirely, and then look carefully at the rest.
Are there ways to reduce heating bills? Can you cut back on gas expenditure? Are there less expensive ways of getting a little fun and sparkle in your life? The more you can keep your monthly budget in check, the more you can put into saving. And those savings will be essential for getting through the tough times.
Finally, look outside of the money economy. See if there are other ways of keeping yourself in the good things of life. Starting a vegetable patch can be an inexpensive and rewarding way of getting food – and it gets you skilled up in self-sufficiency. Salads and herbs can be grown indoors, even for those with less space. There are also websites for the swapping and free recycling of all manner of goods. You can even look to free holidays, through schemes such as house swaps, or hospitality exchanges.
All of these approaches will help to take the pressure off of you, and give you something to fall back on, when you need to weather the storm. Those storms seem likely to get more frequent, so start skilling up in ‘recession survival 101′ now.
This article is a guest post from Adana Lima, a stay at home mom with 3 cute kids (Jamie, Pablo, Guerrero) who writes on the topic of adjustable dumbbells
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