5 Steps to Help Secure Your Financial Future

Despite many "experts" claming our economy is not going or going to go through a recession, in my opinion that is exactly what we are in. With the excessive loss of jobs, the multiple retail and restaurant closures, and the rising prices of, well, everything; regardless of what "expert economists" say, we need to be cautious with our money and work to survive this tough time. Here are some helpful tips to help you tread the financial waters.

Save, Save, Save!

First and foremost, create an emergency savings account to help you survive the risk of unemployment or decreased personal revenue. Experts say to have three to six months of cash on hand to help you make it through a rough patch or a loss of income. Add up all of your monthly expenses including rent, utilities, car payment, insurance, gas, food, etc. Start a liquid savings account with three to six months of this total amount should it be needed. Not only will this take a lot of the stress out of the financial aspect of your life, but you will safeguard yourself and your family. Even if you are just starting this emergency savings, $50 or $100 a paycheck can quickly add up and secure your financial future.

Reduce Expenses

Take a serious look at your spending. When you start to analyze what you are spending your paycheck on, it can be astonishing where your money is going! Cut down on eating out; get rid of lavish expenses; and shop around to get the best deals. Look at your credit card interest rates and ask for a reduction; eliminate any recurring payments that aren't necessary such a gym memberships, movie rental programs, or cable television. Start a budget and stick to it, you will be surprised at how much money you can put into your emergency savings or into other tasks to secure your financial future!

Eliminate Debt

Now that you have extra money from reduce your expenses, use that money to pay down your debt. First, eliminate credit card debt as this is usually the highest interest debt and is non-deductible. If you are paying only the minimum due on your card every month, you are racking up the interest paid. Pay off all credit cards as soon as possible and you'll have more money to put in the bank. After credit cards, eliminate other high interest debt such as car loans, personal loans, or student loans. The best way to secure your financial future is to have no debt at all.

Consider Consolidation

While not right for every individual, it may be worth your while to consider consolidating your debt. If you have equity in your home and can qualify, a home equity line of credit might be a ticket to securing your financial future. This type of product allows you to borrow cash if and when you need it. Another option is to consolidate your debt at a lower and potentially tax-deductible rate and allows you to use your money elsewhere. While this could be the perfect addition to some homeowners, it is not for everyone; make sure to do your homework and assess your goals prior to consolidating your debt to secure your financial future.

Become Indispensable

One way to ensure your financial future is secure it to maintain an indispensable quality within your industry. While you may already have a secure employment status, it is hard to predict if you may suddenly be laid off in a recession. Imagine the next step you would take if you were given the pink slip. Keep your name at the forefront of the pack by networking within your industry. Connect with colleges on a regular basis and maintain relationships with those who may help you gain employment. Brush up on skills that make you competitive in the market. Gain a skill that others may not posses or that may be rare in your industry. Stay at the top by putting in extra effort. Do not slack off at work, come in late, or hang out at the water cooler to often. Keep yourself visible and indispensable by being a great employee. Having a job is necessary to secure your financial future.

While we are not technically in a recession, it sure feels like we are headed in that direction. Save, reduce expenses, eliminate debt, consolidate, and be indispensable to secure your financial future and survive a recession should we have one!