Beat the Recession in 5 Easy Steps

bulram | July 26, 2012

There’s no denying that the last couple of years have been tough. With the country now facing a double-dip recession, it is worth having an action plan in place to make sure you can ride out the storm without too much damage. Making the most of your money doesn’t have to be difficult – start by following these simple tips to keeping yourself recession-proof.

You Current Expenditure

Take a closer look at your expenditure and work out ways to trim your budget. Start by writing down everything you spend money on during the month and look to eliminate anything you don’t need, or at least replace it with a cheaper option. For example, do you really need that magazine subscription or that expensive TV package? By cutting both back, even for a few months, you are freeing up much-needed cash.

Avoid eating out as much as possible and that includes buying sandwiches at lunchtime. Plan your weekly meals and write a shopping list for the things you need and stick to it. Consider shopping online as it’s not as easy to get side-tracked by deals and offers for things you might not even use.

Try to pay off your debts because there’s no point freeing up spare cash if you are increasing the amount you owe on your credit cards. Make a realistic plan to get your debts cleared as soon as possible, starting with those with the highest interest rates. Consider transferring the balance on your credit card to a 0% interest deal so that at least your debt isn’t growing while you try to pay it off.

Don’t stop adding to your savings. It may sound strange, especially when you’re trying hard to free up some money for your monthly budget, but it really does pay to have some savings. Putting some money away each month, even a small amount, will help you further down the line when you face an unexpected bill or lose your job.

Your Financial Future

The sad reality is that over the last few years the recession has hit businesses hard and jobs aren’t as secure as they once were. Many companies are having to downsize and make some of their employees redundant. Whether your company is looking to do this or not, it is worth being ahead of the game and making sure you are ready should the worst happen. Update your CV, start networking and put yourself forward for additional training so you are in a good position if you have to find another job.

Try to avoid selling your house unless you really have to.

The property market has been hit hard by the recession and while that is great news for buyers, it presents difficulties for anyone thinking of selling their home. If you do sell now you are unlikely to get a good price for your property. If you can, consider riding out the storm and waiting for the market to pick up, which it will eventually.

This post was written on behalf of a professional car financing company looking to publicise informative posts relating to the finance industry.