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Step 1
Start immediately putting cash away into some sort of reserve fund. Most experts advise families to have an emergency fund that is equivalent to your living expenses of a six month period. Open a savings account and start stashing as much as you can afford to take out of each paycheck. Make sure that you will have access to the cash in case of an emergency, a layoff or a job loss.
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Step 2
Be smart enough to know that this too shall pass. Take advantage of the fear that is surrounding the stock market at this point. The time to invest is when the price is low, which is when others are being told by their brokers to sell. Smart investments happen when times are rough, and buying stocks during this decline could be the wisest move, if you have the extra money.
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Step 3
Consider taking a second job. Having a second job could save you from hardship if one of the companies decide to layoff or let people go. Overtime work should be taken, if you are offered it by your employer. You may even need to have other members of your family go to work in order to make ends meet.
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Step 4
Lower your consumption. This is an excellent way to cope with a recession, and it is one of the most universal suggestions by the financial experts. By lowering your expenditures, you will be ensuring a lower living expense and that should be your ultimate goal. Eating out, going shopping, going to the movies and other entertainment should be cut down to a level that you can live comfortably with.
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Step 5
Try to shop smart and take up bargain hunting. When it is necessary for you to buy clothes, for example, shop at the discount shops first. There are great deals and bargains to be found at second hand stores, also. You can better cope with a recession when you are spending less and saving more money.
Comments
MyJB said
on 3/25/2009 All very good points. Thanks for sharing. 5* and a recommend.