As I write this, the stock market was taking another beating, with many factors contributing to the sell-off: high unemployment, European debt crisis, inflation fears, bad housing market… The list goes on. The experts indicate “we are dangerously close to a recession.” I don’t think it ever left. But if the “big players” are worried, should we worry as well? Instead of fretting, why not take some simple steps now to “recession-proof” your finances?
- Cut down on expenses. Even if you think you’ve already cut down, check again. I thought I all my subscriptions, I was mistaken. I discovered I had a subscription to a magazine that had not delivered in months, so I called and asked for a refund for the remaining issues. Every dollar counts.
- Stop getting into more debt, and pay down your balances.
- If you are employed, make an extra effort to be noticed as a valuable worker.
- Learn some new skills that would make you more marketable. OR, learn some new skills you can use to have a mini side business.
- Save money and build up your emergency fund.
- Start your stockpile of food, water and essential supplies. Don’t neglect comfort foods like chocolate, wine or beer (if you like these); they are good for morale.
- Start a garden and grow vegetables, herbs that your family will use.
- Brainstorm on ways you can raise funds to build savings or increase your income: get together hold a neighborhood garage sale, sell stuff on E-bay or Craigslist, use your skills or hobbies to make extra cash.
- Take care of your health; get your health and dental check ups, fill your prescriptions.
Check out this article”Personal Financial SHTF Experience” on FerFAL’s blog http://ferfal.blogspot.com/2011/08/personal-financial-shtf-experience.html. It’s a great personal account that shows if you plan well, you will weather any storm that comes your way.
For easy ways to become more prepared, read my book: