Personal Finance Tips For Surviving A Recession

Personal Finance Tip #1: Get out of debt

Sure, you’ve heard it before, but now is the time to take this message seriously. It’s easy to make excuses for why you haven’t been able to get out of debt, but there’s nothing like a recession to make it clear that excuses just won’t cut it.

Take a good, hard look at the way you spend your money. How many things do you buy because you want to fit in? Impress someone? Look good? There’s nothing wrong with nursing a little self-confidence, but know that there are cheap ways to do it. If clothing is one of your weaknesses, resolve to only shop second-hand stores or garage sales. You can even try eBay.com for great deals on fashion – sometimes even on designer duds.

What about the way you eat? If you dine out once a week, bump that to once a month. If you buy lunch every day at work, start packing a brown bag. Too many people feel like fixing lunch or preparing other meals is too much work. In fact, all it comes down to is a little planning. Make it a habit to go to the store once a week, and always bring a list so you’ll be sure to stock up on everything you’ll need to comfortably eat at home for the week. If you’re completely averse to cooking, buy frozen meals – many are downright tasty and they’ll still cost less than eating out.

Essentially, look at every aspect of your spending patterns and find ways to cut, cut, cut. Get in the lifelong habit of making wise spending decisions. Not only will you survive the recession, you’ll build a healthy financial future that’ll never land you in money-trouble again.

Personal Finance Tip #2: Grow an emergency cash fund

You’ve probably heard this one plenty of times too, but that’s because it’s absolutely essential to a healthy financial lifestyle. Consider the plight of thousands of people who can’t borrow money for their businesses or whose credit card limits are being lowered by the day. Don’t let that be you. Go to your bank or credit union today and open a savings account if you haven’t already. Make it a point to put regular, weekly contributions in. Even if you can only afford a quarter at a time – seriously – you should still go do it. Not only will you be slowly building up your emergency account, you’ll also be forging a lifelong habit of healthy saving. From there, you’ll snowball. Healthy savings habits lead to a more positive outlook on life. A positive outlook sets you up do to better in your job and to be more attentive in your relationships. And it just goes on and on. So remember, no matter how piddly your initial contributions will be, start growing that savings account.

Personal Finance Tip #3: Consider buying blue-chip stocks

If there’s a bright side to a recession, it’s that the price of stocks are very, very low. Though this isn’t good news for anybody who already had a significant investment in stocks, it’s great news if you’re looking to make a few investment purchases. The shares of stock that have gone down substantially in price are also the ones that generated the largest gains in the past – and are likely to do so again. Any money you invest now could very well provide you with the extra money you’ll need to get by in your retirement years.

Be sure to choose solid stocks in industries known to make good recoveries. Remember, this method of investment is tried and true. Stocks will recover from the recession, so get on board while you can.

Personal Finance Tip #4: Reach out to friends

Friends are ideal supports when you need to get through hard times, and there’s nothing like a recession to bring people together – or push them apart. The reality of many friendships is that they cost money, whether it’s because you and your friends like to “do lunch” or go shopping together or catch the latest movie at the Cineplex. If you feel like spending time with your friends is costing you too much money, talk to them. Anybody who is a real friend will understand – and hopefully share – your goal to get your personal finances in order. And there’s plenty you can do with your friends that is either cheap or free. Go to public concerts, rent free movies from the library, spend the day reading in the park.and the list goes on. If you have any friends who don’t support a change in spending habits, consider “letting the go.” Real friends will enjoy spending time with you regardless of the price of the activity.

Personal Finance Tip #5: Consult a professional

It never hurts to talk to a professional about your money troubles – particularly someone who is not personally invested in your plight. Several organizations exist to offer free counsel on personal finance. Check with your bank, credit union, place of worship, or chamber of commerce for suggestions.

Mindy Tyson McHorse is a contributing writer for BillSavings.com, your information resource and community for money-saving tips and offers so you can shop, compare, and save money on just about everything.

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By: Mindy Tyson McHorse