3 Ways To Recession-Proof Your Finances
How To Keep Your Finances Stable in an Unstable World
If the recession happens and/or gets worse, as many predict it will, there are things we need to think about. How will we pay our bills? Are our jobs at risk? How can we recession-proof our finances? While I can't fix everything for you, I can give you some tips to help you prepare for the worse. Here's some sound advice, whether the recession hits or doesn't.
Just Say No to Credit Cards
Credit cards, my friend, are a drug to some of us. The thrill of charging a new plasma television may indeed exceed the thrill that some experience when taking illegal drugs. Because of that, we have to learn to say no.
Even if your credit card habits aren't that bad, you could probably use a bit of "reigning in" and learn to avoid making unnecessary purchases. Those gourmet coffee runs? You might want to curb them. Get a coffee pot or a French press and you'll be fine.
Even if you pay cash for your "splurges" save the cash and put it towards paying down your debt. If the economy is hit hard, you're going to want to have as little debt as possible weighing your finances down.
Fall In Love with Coupons
If you haven't yet discovered the wonder of coupons, it's time you get acquainted with the little bits of paper that can save you hundreds (or even thousands) of dollars each year. For the little bit of time you spend clipping coupons and planing to shop the best sales, you'll have a much fatter bank account to show for it.
Now May Be The Time to Refinance
If you have an ARM, now may be the time to refinance into a fixed-rate mortgage. Mortgage rates are lower than they've been in a long time. Adjustable rates can go up and you may find yourself in a bind if you can't make your rising mortgage payments. With a fixed rate, you won't face that dilemma.
Even if the economy doesn't take a turn for the worse and everything is bright and cherry, adhering to the above advice really can't hurt your finances or your future.