12 Recession Survival Tips

Have you been hit hard by the recession? Hard economic times call for some deliberate actions. A recession is a time to be proactive and not reactive. Here are 12 tips to help you survive a recession.

Recession Survival Tip #1: Pay Debts

If you can pay off your debts or pay down your debts, at the same time you're saving, you'll be doing yourself a giant favor. Debt equals stress. The less you have of it, the more apt you'll be able to take positive steps when occasion presents itself. Live below your means in order to use the excess to pay debts off and save too.

Recession Survival Tip #2: Start Saving

Savings are important if you want to skate through hard economic times. Without savings you have nothing to fall back on if you lose your job. Most economic advisors say to have at least 3-6 months living expenses in a saving account. That amount is being revised to reflect 6-9 months or more. A recession could put folks out of work for more than a half-year, and if you're not prepared, you'll suffer.

Recession Survival Tip #3: Pay Cash

When you pay using cash, no debt looks you in the face when the bill comes. Credit card balances remain at 0, and you know you own all your purchases. In addition, when you pay using cash, you see the green bills move from your hand into the hand of another. You feel the real cost, as opposed to charging something that has a delayed hurt.

Recession Survival Tip #4: Don't Buy Luxury

Buy what you need to get by, and don't make the mistake of buying luxury. Don't convince yourself that you deserve it or you're worth it. Don't go for the name brands, and don't be afraid to shop discount stores where the same item may be dollars cheaper. Look for online coupons, coupons in your local newspaper, and coupons with your grocery store receipts. Compare prices as if your life depends upon it.

Recession Survival Tip #5: Reuse and Recycle

Look for new purposes for old items. Fix broken things and make do. Barter, trade, or do whatever you can do to keep from putting out cash for items you can do without. Shop garage sales and secondhand stores. Learn how to mend your clothing, and buy clothing that you can wash and clean without the need for dry-cleaning services.

Recession Survival Tip #6: Learn to Budget

If you've lived well and budgeted little, now is the time to get control of your finances. You need to know how much you have coming in, so you know where to make the adjustments. Coffee at the drive-through may need to go, in favor of coffee in your thermos. Weekend trips to the beach, may need to become a once a season event. Shopping at the mall, may need to be curtailed. Rather than driving to work, you may need to carpool or consider taking the bus. Plan your purchases, rather than shopping by impulse.

Recession Survival Tip #7: Learn to Cook from Scratch

Eating out can consume a sizable share of the budget. Learn how to cook from scratch at home, and you can save on the cost of convenience foods. You can also save on the cost of dinning out. If you pack a lunch, you can save on your work lunches.

Recession Survival Tip #8: Focus on Your Work Ethic

Make yourself valuable to your boss. Let him or her see you slaving away, never wasting time, being the most valuable employee. When it comes to cutting staff, you won't be the first to go.

Recession Survival Tip #9: Build More skills

While you currently have a job, begin building additional skills. Those skills might turn into other job opportunities later on, or they could be used to barter for other services you might need. Focus new training on the job sectors where jobs will always be in need.

Recession Survival Tip #10: Learn to Garden

Gardening grows food you need and helps save the food dollar. Learn how to grow, harvest, and prepare foods that you currently purchase as readymade foods.

Recession Survival Tip #11: Consider Renting a Room

If you have an extra room or you can make an apartment above the garage or in the basement, now is a good time to think along those lines. That cash income may be just what you need to see you though.

Recession Survival Tip #12: Downsize Where You Can

Sell some of your big toys or that extra car. Downsize your home to something a bit more manageable, especially if the kids are grown. Figure out where you can downsize and save.

Take the bull by the horns. Be proactive; equip yourself to ride out the hard times. Let these 12 tips help you survive the recession.