How to Survive the Recession

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By cwengre
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Survive the Recession

In todays economy more and more people are searching for answers to survive the recession. This article gives practical advice on how you can survive the recession.

Difficulty: Moderately Easy

Instructions

Step 1

Understand that everyone regardless of their circumstances are beginning to feel the pressure of the fallen economy. Rally family, friends and neighbors to form a support group. Exchange resources and offer your talents to them in return for use of their talents. For example offer to babysit your neighbors kids one week day a week to cut back on their daycare expenses in exchange for your neighbor fixing your car so you can save on labor costs.
Step 2

Look for community resources. If your income level has changed you may quailify for assistance programs that you have not qualified for in the past. New assistant programs maybe available you didn't know exsisted. There are programs anywhere from free/reduced school lunch programs to government welfare programs. Many communities offer a resource hotline that helps you find available programs.
Step 3

Even though we all like to get new stuff, now maybe the time to buy used. Check out thrift stores and yard sales for items your family needs. Hold a garage sale of your own to earn a little money to put away.
Step 4

Stop spending the money you do have. Decifer between wants and needs you and your family may have. Stick to only paying for the needs. If you spend too much money on the things you want, you may not have the money for the things you need later on.
Step 5

Start a savings account. Regardless of your financial situation, it must be a priority to save money. Look for expenses you can cut back on or get rid of, even if it is temporary. Place the money in an interest bearing, FDIC insured savings account. You should have 6 months worth of income saved. Although you may find this an unreachable goal, try to save a months worth of income at a time.
Step 6

Take advantage of lower interest rates. If you are in the position where you can refiance your home or auto. I would recommend doing some investigating to see if refinancing is right for you.
Step 7

If you are in danger of loosing your job or you already have a tight budget you should start looking right away for supplemental income. Look for a part time job you can work along side your full time job. Seasonal jobs are great positions to look for. Ask for overtime or more projects at work that would give you more hours. Research ways to earn extra money online. These are all great ways to earn some extra cash for that savings account. Again this can be temporary.