Wise Strategies to Help You Thrive Through a Recession

Talk of a recession can strike fear into your heart as you wonder how to maintain employment and afford daily needs. However, you may be able to exit the slump even better than you entered it, provided you take advantage of these suggestions to help you thrive during an economic downturn.

Create a Budget

Keep your spending under control with a realistic budget. You don\’t need fancy software or apps to see where your money is coming and going. Utilize an Excel spreadsheet to monitor your expenses. You can attach an invoice or bill to track incoming and outgoing funds by inserting a PDF into the file. Verifying and double-checking your figures becomes much simpler than finding a separate file when you input the document directly into your spreadsheet.

Trim Expenses

After discovering costs to cut, eliminate unnecessary subscriptions and extras like eating out. If things are still too tight, hire a service to help negotiate your bills to a lower rate. Expert negotiators can help you reduce your internet, security system, and electricity costs.

Consider Refinancing Your Home

You may be able to lower your monthly mortgage payments by refinancing. If interest rates are less than your original APR, talk with a loan officer for options. Sometimes you can get a better rate and terms than you currently have. Only use this option if you don\’t plan on moving anytime soon.

Review Ideas for Profitable Businesses

Frankly, some industries boom during a recession. So perform a market analysis to figure out which companies see an uptick. For example, the desperation some folks feel during a downturn leads to increased crime. Consider starting a security services company because the field offers a high profit margin.

Additionally, repair services often become more popular in times like these, as people hesitate to replace large appliances and vehicles. You can also locate broken items that are only in need of refurbishing and sell them to people who must replace high-ticket items but want a deep deal.

Freelance bookkeeping and accounting are other valuable skills because companies are hesitant to hire full-time accounting staff but still need to keep their books in order and ensure the best tax advantages. B2B services like thisare optimal because companies have a higher cash flow than individuals and can afford premium prices.

Once you’ve come up with a business idea, the Accounting 4 Everything team can help you create a business plan along with handling all your accounting, payroll, and tax needs!

Enhance Your Skills

If you have extra time on your hands because of less work or disposable income for recreation, enhance your marketability through schooling. Grants and scholarships may be available to alleviate the cost. Some courses guarantee employment after completion, making the investment worth it.

If your desired industry doesn\’t require formal certification, you can learn many skills for free through university lectures or online video-sharing sites. You can also access online course subscriptions for a fraction of the cost of a traditional school.

Bulk Up Your Savings

Avoid using credit and keep cash for emergencies. Build up three months of living expenses to carry you through a job loss or an adverse event without having to scramble and make a rash decision. If you have nothing set aside, start by putting a small amount into a savings account and increasing the fund incrementally weekly.

With astute planning, you can weather the difficulties of a recession. Options like starting a recession-proof business or refinancing your home can ensure you have sufficient cash to care for yourself and even prosper financially. Head into a downturn with an intelligent strategy to thrive through a recession.

Ed Carter
ablefutures.org

About the Author:

As a former financial planner, Ed Carter uses his background and experience to help those with disabilities plan for their future.  Regardless of their nature or how long they’ve affected someone, physical and mental disabilities often cause stress and confusion when it comes to financial planning. He created Able Futures to help people with disabilities prepare for a secure and stable financial future.