Steps for Recession Survival Preparation
In this economy, a light breeze in another country seems capable of toppling markets and banks. It’s an unfortunate reality that there is absolutely no way of knowing what economic challenge the future has in store. It is prudent to consider exactly how recessions impact our lives and understand what to do to protect ourselves.
AVOID DEBT
Recessions strain cash flow. Lack of cash has an impact on every aspect of our lifestyles. Suddenly, you don’t have enough to pay utilities. You’re struggling to make monthly payments, using lines of credit to stay afloat. In no time at all you owe more than you can afford to pay back.
This is typical for a lot of consumers. Debt is one thing we all have in common. Worrying about bills prevents you from dealing with other — potentially positive — situations.
Stop falling into the trap of believing owing money is okay. Use cash. Credit cards are convenient, but debt is debt is debt. With debit cards, there’s less reason to rely on interest bearing lines of credit. If your bank card has a VISA or MasterCard logo, use it. Don’t use credit for buying groceries and clothes. When used for necessities, we tend to rely on credit more.
Pay off debt during good times. Minimize use of credit cards. Forget the new car and buy a decent used one, purchased outright. Stop putting your life in a position where, when hard times hit, the crash puts you in jeopardy.
INVEST WISELY
No recession has ever cost anyone the money kept in a savings account. Savings accounts may be slow burners, but there’s no possibility of losing everything in a recession. Try to keep a healthy account regardless of where you put money.
Stock markets make people rich overnight. It’s also made them penniless in minutes. Recessions hit investors like a punch. If you have to play those cards, put in only what you can afford to lose. While it’s difficult, pull out profits as they come. Don’t let others convince you to wait it out. The only real way to survive an economic recession is to have as much cash on hand as possible.
There are hobbies that constitute fairly safe investments, where demand beats what’s happening in the economic environment. Gold bullion is considered a secure bet. So is investing in gold and silver coins. Hobbyists can build impressive and lucrative collections. Still, they purchase for personal reasons. Investors buy purely for profit. The same applies to collecting stamps, rare comic books, etc. These investments aren’t so much affected by the economy as by demand.
GO GREEN
Eco-friendly isn’t simply about saving future generations. Green saves money. Investigate solar paneling. Upgrade heating and air conditioning systems to more cost effective alternatives. Stop driving to work. Public transportation is cheaper than filling the tank. Forget grabbing a coffee and donut. Bring a Danish and thermos from home. This not only saves cash, but now you’re putting less waste into the environment.
Recycling is a powerful source of green and helps ensure there’s a little extra to put in the piggy bank. Repurpose old items before throwing them out. Fix things until they can’t be fixed. Keep an eye out for garage sales. Utilize thrift and secondhand stores. Avoid fabrics that require dry cleaning. Maybe ‘Learn to sew and mend or find someone who can do this for you, preferably free or cheap.’
The best part about becoming green and learning to recycle is if you’re doing it all the time, you will already be comfortable with these practices when an economic recession hits. Many of us are hit hard because we can’t adjust or do so in a timely fashion.
EMPLOYMENT
There was a woman employed at a large investment bank, manager of a small division within this global organization. Any time a management or supervisory position opened up, she quickly offered to take on those responsibilities. Inside of ten years, she was manager of several divisions. Under her umbrella was the mail room, the word processing department, toiletries and maintenance supplies, all paper products and more.
Whenever people started losing jobs, she was never touched. She wore too many hats.
Making yourself valuable to your employer is a must. Never waste time. Volunteer for projects. Let them see how much energy you put into your responsibilities. Take offered training courses and attend seminars that will make you a better employee. Develop a strong, long-lasting relationship with supervisors. It’s not unusual for a company to go through multiple rounds of layoffs during a recession. If you’re an asset, you decrease the chance of being on those lists.
STOCKPILING
You don’t need to anticipate the apocalypse to prepare for the worse. As much as your budget can afford, stock up on non-perishable foods. This includes dry milk, canned foods, flour, sugar, beans and rice. You can even stockpile mayonnaise, catsup and mustard. Extras like salt, oil, vinegar and pepper, as well as tea and coffee are vital. If you have the room and the budget, keep a freezer and pile it with meats and breads.
It won’t be easy and it might not even make sense, but avoid using the inventory. If you do, replace what you’re taken immediately. You’re building this stock for a specific purpose, which is having a sturdy supply of goods when an economic recession prevents you from being able to do so.
Food isn’t the only thing you might need. Personal items like toilet paper, baby goods, toothpaste, soap and shampoo, candles, and even insect repellent should be kept on those shelves, too. Have bleach, laundry detergent, and basic medical supplies like aspirin, first aid kits, rubbing alcohol, and band aids, as well.
Preserve goods like flour, cereal, and rice by placing them in large plastic containers. This way you never open a bag or box and find it filled with ants. Label everything so you’re not eventually guessing what’s what. While canned goods and products might have long shelf life, keep track of dates for freshness. Use items before they expire and replace them accordingly. Make sure the intended storage area is a dark, cool, dry place. Large closets, basements, and garages are ideal.
A GREEN THUMB
Even the smallest garden can provide a decent supply of fresh vegetables and save at the grocer. You can grow an entire pumpkin in a potted plant! You can generate your own herbs, onions, and tomatoes. And it can be done with windowsill planters. This is also a skill you should develop before you actually need it.
LAST WORDS
The best tool you’ll have preparing for an economic recession is your state of mind. Deal with the reality of the situation. Have plans in place for getting over any hump that blocks your path. Develop new skills and keep your options open for streams of revenue. So you didn’t lose your job. That doesn’t mean you can’t make a little extra money on the weekends doing odd jobs. It doesn’t have to become a career.
Be efficient with spending, avoid debt — even during the worst times — and look for ways that safeguard what you have now. You can strengthen your professional standing later by networking and working harder now. The steps for recession survival are about enterprising and striking before the iron gets hot.