How to Prosper During a Recession
Prospering during a recession seems like an oxymoron. By definition, credit is tight during a recession; jobs are scarce and most simply do not prosper. There are certainly exceptions, and you can be one of them. Specific steps increase your chances of turning an economic downturn into an opportunity to advance. Don't waste this opportunity to change your life and rise up from the frustrating effects of a challenging economy.
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Instructions
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Maximize the job you already have, if applicable. Ask for overtime, offer to cover for employees wanting time off and work harder than normal. Impress management with your attention to detail and work ethic. Maximize your 401k to the highest paycheck withdrawal affordable without adding debt.
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Evaluate your budget, trimming anything that to save money. Negotiate entertainment and communication rates when possible. Spending less helps the monthly balance sheet in the same way as making more does.
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Change your driving habits. Sell low gas mileage vehicles and replace them with efficient transportation or utilize public transportation, when possible. Maintain your vehicle to increase efficiency and reduce repair costs.
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Consider college degree options. Financial aid options often defray the expense long enough to find a new job once you have completed your degree program. Complete a degree with a specific job in mind.
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Sell all of that extra stuff in your garage. Have a garage sale or utilize online classifieds or auction sites to liquidate excess and pay debt with the proceeds. During a recession, bargain hunters are buying, focus on selling.
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Watch the stock and bond markets. Markets often fluctuate more during a recession. Watch for governmental announcements of statistics such as unemployment rates or trade surpluses and prepare to invest after bad news when prices often take a short-term plunge.
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Investigate government grants or tax rebates to start a business or modify your home. The government often spends more during a recession in the hopes of generating growth to improve the economy. Investigate green business opportunities, as substantial effort to eliminate pollution and clean the environment provides an opportunity for a new business.
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Cash in whole life insurance and replace it with the much cheaper term life insurance. Invest the difference in your IRA or use it to pay debt.
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Clip coupons; join buying clubs and rewards websites. There are countless blogs and websites, some of which evaluates the grocery shopping in the largest metropolitan area near you with extreme coupon shopping in mind.
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Consider a house swap for your family vacation. There are websites that specialize in pairing families with other families to swap houses for a week that allow both families to save money.
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Contact credit cards and negotiate rates or ask for balance transfer options. If your credit is good, utilize historically low interest rates to pay off higher interest debt.
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Tips & Warnings
Track your spending in a diary. Stop smoking and drinking expensive beverages. Buy groceries with meals in mind after you have just finished eating. Become reacquainted with the library. Ditch your home phone if you use cellular as your primary communication method.
Do not add debt if possible. Maintain all receipts in case of an audit. Prepare for worse than expected economies and be surprised with the surplus later. Only invest money you can afford to lose in risky stocks or bonds.
References
- Family Friendly Frugality: Money Saving Tips For Families In 2011
- Art of Manliness: Win the War on Debt: 80 Ways to Be Frugal and Save Money
- Jenn Strathman: 10 Money Saving Tips for 2011
- Bank Rate: 10 Sweet Saving Tips for 2011
- US News: 7 Ways to Make Extra Money in 2011
- Home Exchange: Travel Anywhere
Resources
- Photo Credit PhotoObjects.net/PhotoObjects.net/Getty Images
