10 Ways to get ahead in a recession
While everyone else freaks out and makes irrational decisions in regards to their finances, few of us actually take the time to step back and look at ways to get ahead when a recession takes place. There is no denying that almost everyone will be affected by a recession, but you must provide yourself with the knowledge and power to make sure that you are one of the lucjy few who can get ahead during a recession. I have compiled a list of attainable ways to help you succeed when the economic times take a turn for the worse.
1. Pay down your debt- Concentrate on one piece of debt at a time. The faster you pay off one piece of debt, the more money you will have to use towards another piece of debt. Concentrate on paying of the piece of debt that has the hightest interest rate first.
2. Get more income- Why not get a 2nd part time job, or rent out a room in your home to help you save more money. There are many different ways to make extra money, you just have to be motivated to do so.
3. Do not Wait- Try not to fall into the trap like everyone else and wait for something to happen. For instance, if you arelooking to buy a house, then buy it. Home prices and mortgage rates are lower then ever. If everyone would stop waiting for something to happen, then the economy would be back to normal in no time.
4. Have an emergency account- It is better to be safe then sorry. Make sure to have emergency funds available in case you may lose your job or more bills come your way. Though you may be able to get another job right away, you need to make sure funds are available to pay your monthly bills in case you aren't so lucky.
5.Eliminate a Cost- There is always one thing in each of our lives that we can live without. Try to cut down on dry cleaning, or try to stop smoking. By eliminating just one expense you can save hundreds of dollars each year.
6. Check Your Credit Card Rate- Make sure you know what you rate is. If you have missed a bill payment it isnt out of the ordinary for your credit card company to raise your rate. You may also want to try to lower your rate. Let the credit card company know that if they don't lower your rate you will look for another company to take your business to.
7. Stay away from big purchases- Unless you have the cash to spend on a big purchase, you may want to wait to purchase that item. Ask yourself if you really need this item. It is not the time to add to your debt.
8. Get help from your family- It's time to work as a team. Make sure to get everyone in your household involved in saving money. Try to reduce the use of electricity, water and try not to waste food.
9. Be knowledgeable about your investments- Make sure you know the level of risk that your investments are in, and make sure you are comfortable with it.
10. Stay Calm and Don't Panic- There is light at the end of the tunnel and eventually your finances, real estate and your job will get back to normal