How to Be Recession Proof
- 1). Look for ways to reduce everyday spending, and you'll begin saving money and learning how to live on less. Make your coffee at home instead of spending five dollars at the drive-through coffee house. Cut back on cable pay channels. Find relatively painless ways to cut costs now and you will benefit in the long run.
- 2). Start saving now. Experts recommend having an emergency fund that will cover three to six months of living expenses. While that might seem astronomical and out of reach, something is better than nothing. Put money in a savings account every time you get paid, before you spend on anything else.
- 3). Update your resume and brush off your networking skills. Even though your job could be completely stable, it is still a good idea to be ready just in case. Taking a class or two to gain some new skills is not a bad idea, either.
- 4). Pay down debts. Stop using your credit cards immediately. Work on paying off your smallest credit card debt. When it is paid in full, focus on the next biggest one. Think of the freedom you will feel when those bills stop coming every month.
- 5). Refinance your home. Interest rates are low now, so check and see if you can get a better rate. Sink any extra money you save into your savings and paying off debts.
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