How to Survive a Recession

How to survive a recession is an article directed to individuals and families and not investors. The basic underlying question is: what can we do to make sure our needs are taken care even in the worst economic conditions? Some would consider the steps below a little bid extreme, but a recession is not to be taken lightly, follow the steps below to get closer to a recession proof living!

Difficulty: Easy

Instructions

Things You'll Need:

• Creativity
• Patience
• Discipline

1. 
    
   Track Income and Expenses

   Track, track, and keep tracking. Just like a business, every family has income, expenses, cash flow, debts, assets, and liabilities. You need to know exactly (to the penny), where your money is coming from and where it is going. Do not waste money and time buying and learning how to use software. Simply carry a note card and write everything you spend. By everything I mean EVERYTHING. If you spend 10 cents plugging a meter, then write them down.
   At the end of the month divide into categories where are your expenses (food, eating out, car repairs, cell phone bills, downloading music, etc). Do the same for all sources of income. This will help you identify where you are wasting money, where you can save some more, and which ones you could cut all together. Learning how to survive a recession will take discipline, and this will start with your money.

2. 
    
   How much are your really earning?

   Determine how much are you really earning. Looking at your pay stubs will not give you an accurate account of how much you are making at work. You must account for all cost involved in you earning a living. If you take into account taxes, gas to drive from and to work, parking, work attire, the cost of day care to have your children watched while you work, lunches out, etc. You might be better off finding another job closer home or looking at a way to decrease those cost (take the bus).
   Learning how much you are really earning will push you to seek other alternatives that might be more profitable. If consequently, your job does pay you well and you have little or no investment, then hold on to what you have.

3. 
    
   Find your local library

   Find your local library. It is time to sharpen old skills and acquire new ones. Your local library will probably have a lot of free resources where you can learn and teach yourself to do just about everything. Learning new skills will help you avoid paying for other’s expensive labor.
   If you can learn how to change the oil in your car, groom your dogs, give your family hair cuts, canning, and do some home maintenance, you can save a bundle and keep more dollars in your pocket. Websites like eHow and youtube have many free tutorials and videos on how to do things – like how to survive a recession. If you have the time and patience, you can stop paying others for doing things you can do for yourself.

4. 
    
   Waste Not!

   Waste Not! In a recessionary time, we tend to re use, fix, paint, restore instead of replacing or purchasing new. If you have something that could be fixed, cleaned, or simply do not want it, do not throw it away. You could fix it and sell it or you can trade it for something that you do need. Sites like eBay and Craigslist can help you find a person that might be willing to buy and/or exchange. You will not learn how to survive a recession unless you stop wasting.

5. 
    
   Stop using disposables!

   Stop using disposables! Disposables are convenient for several reasons (do not want to do dishes after a birthday party), however, when you are buying disposable mops, rags, sponges, and other related cleaning supplies, you are wasting a lot of money. The days of one use products are over in a recessionary period. Using a bucket of water, soap, old fashion mop, and cloth rag can help you cut on these expenses. Learning how to use vinegar can help you save on buying expensive cleaners.

6. 
    
   Use the Web!

   Invest on secondary products or learning how to use them. In a recession, most people will not be buying new stuff; instead, they will be trying to fix what they already have (and need fixing). If you learn how to “fix” clothing (hem, sew, etc.), your skills will become marketable (as long as you keep your labor inexpensive. Although others might not hire you (you are not venturing in a new business), you might be able to trade and/or barter for things that you do need instead to have to buy them new or pay cash for them.

7. 
    
   Be creative

   Do more with less. Creativity will be your best asset. Finding new ways to achieve a result with less consumption will truly be your best way out. I know this sounds cliché, but take it from an immigrant finding a new way in different world. There are more ways than one to find a solution to a problem. A can do attitude will teach you how to survive a recession and maybe you will teach your neighbors.

Tips & Warnings

• The web can help you find just about anything, but it can also show how to to make it! Use your local library and the internet for best results

[Tiferet]

on 6/28/2009 Lot's of great tips for those of us who are also unemployed. I've also cut back on my internet speed and have downsized my trash can and yard waste to save some $. 5*

[greatgreat8]

on 6/28/2009 great article 5*

[autoclaim]

on 4/13/2009 Thanks Rick, I think that trading is becoming more and more important in the U.S. A lot of that can be done in Craigslist even.

[rickmac]

on 4/13/2009 Good idea to reuse or trade. Bartering is catching on in some places. 5*

[autoclaim]

on 4/4/2009 Thank you for your kind comments. Hector