Recession? Middle Class to Broke!

It's in the news, on television and in our daily lives. Banks are closing, loan companies are being sold before they file bankruptcy and business are going under. There are massive layoffs in an attempt to save money or people are showing up for work only to be given notice the company will close before the end of the month. In many places employees show up for work only to find the doors locked with a sign directing them where to pick up their final pay.

It takes two paychecks to make ends meet in our current society and if one person in the family loses a job it will affect everyone in the home. If the mortgage can not be paid the home will be lost to the lender and the family left homeless. When the car payment is missed for the third time it is repossessed and you are left without transportation to work. Children become scared as parents scramble to find some place just to have a roof over their head, but now your credit is bad and you can't even rent a cheap hotel room.

When does it stop? How do we survive? Only time has the answer to the first question, but you can survive if you start early enough. If you don't want to lose your home then make it priority no matter what. It becomes everyone's responsibility to do their part to make the payment. It's going to be hard with some tough decisions, but how badly do you want to keep your home?

First on the list to consider is your income. You need enough cash coming into the household to make the mortgage payment. Other bills that require cash are power, heat and fuel for the car. Food is a must and clothing is not as important because most people have more than enough. But you must figure how to furnish income first.

Your jobs. Hopefully you won't get laid off in the coming recession, but your hours could be cut in an effort to keep you employed so start saving what you can now. Most of us live paycheck to paycheck already so start a jar, box, bank, drawer or something that you stick $10.00 in each paycheck. It may not seem like much at the moment, but when you are finally broke and in need at just one more tank of gas you are going to be thankful for that little side savings. This is the basic emergency money for small items like gas in the car, one more small bill paid or medicine.

Get a second job a few hours a night or on a day off. When you get paid put the money away. This is not for extra money to spend, this is for security! It is well known you should have at least three months living expenses in a savings account. Right! Most people I know are just trying to make it till the next check before the run out of gas! The second job is for those emergencies and for times when your normal job cuts to part time. With two part time jobs you can make ends meet a lot better.

Hobbies are another great way to make extra income, but get one that is useful to others and inexpensive for you to pursue. Sewing, car repairs, wedding cakes, special cakes or entertainment is always welcome. Don't charge too much or you won't have any business. Make it reasonable and still make a profit. This is your time to relax and add a little cash to the kitty.

If you are thinking about changing careers make sure there is a need for your choice. The medical field is one of the best you can pursue, but beware if you are looking at the billing field because a lot of it is now outsourced to other countries. Don't go into a field that is useless in this country. Stay away from careers that are laying off or closing their doors for good. Car repair, truck driving and management are a few of the better choice's in today's job market.

Start your own business. Now is a good time especially if you are a woman. Look into business grants you don't have to repay or low interest loans you are able to repay. This money is not for a good time! It is for your business, stock you will need and bills to pay until you can turn a profit. Choose a business you can do from home if possible, from your computer or within your own town. If you are going to rent or lease a place do not over estimate the space you will need. Make it affordable and then make it work! Many businesses can work within a small area with a little creative arranging. Make sure you know what you are going to do, where and how you are going to get stock and how much you need to live on. There is a lot to take into consideration when starting a business, but it's a better way to go much of the time in a recession state.

Start a service oriented business from home. Yard care, cleaning, sewing, cooking, companion care, babysitting, childcare, shopping service, bookkeeping, phone work, car repair, piano tuning, music lessons or just about anything for the community. Every one of these jobs will bring in enough extra money to pay bills and buy food for your family. Most people have talents they aren't aware of until needed so start making a list of what you can do.

Transportation! Do you have a new car with payments higher than most mortgages? Get rid of it. Does your car cost more to repair each month than a car payment? Get rid of it. Get a good family car with low payments and in good running condition or look for a used car you can pay off right away that won't need a lot of repairs. If you just like the old car that needs too many repairs consider having someone more experienced look at it. Maybe you're repairing the wrong things or maybe it only needs a little more work to be in good enough shape. If you can hang on to a vehicle and not have to pay payments this is going to help your financial situation a lot. Please, take a class on basic car repair or read a book on how to repair your own. Most of the time it's not that hard to change the oil!

For other considerations look into the new scooters on the market. They use very little gas and are great in good weather for in town driving. It will take you to and from work just as fast as a car and for a lot less money each week. Also most cities now have bus systems to help commuters through their day at low or no cost. If you have a set work schedule then car pool with others that work with you. If you live close enough to your job then walk or ride a bike in good weather. If you do this just once a week you will save gas over the period of a months time. It can make enough of a difference to pay a power bill.

Now it's going to get tough and this is where you really have to decide how much trouble you're in financially. Cell phones! You don't need them! If you must have one for emergencies or in case of breakdown get the least expensive plan. Do not call your friends, the take out, mom, your sister, the movies to see what's playing, the weather channel and do NOT text, play games or leave it on for no good reason. You can survive without being on your cell phone to friends and family for hours and hours a day. Stop it! Get a regular home phone for the least amount of money. Do not call long distance or if you feel you must talk long distance daily to your mom then get a plan at no minute charge. Do not call her on the cell phone! This is one of your biggest un needed expenses.

This one is going to hurt too. Get rid of the cable TV and DTV. If you aren't watching TV then you have time to find a solution to your current problem. Go look for a job! Create an income from home. Make something for someone else. Learn a new career as much as you can at home and check for classes at the local college or adult education. You can join Netflix for a very low monthly fee and watch movies as they come in. When you are not watching the movie then work on a plan to provide for yourself and your family.

Take an online class. There are several computer classes you can find online for free! Learn something useful and new, but don't sit around watching TV all day!

Turn off the lights and turn down the heat. Turn off the air conditioner. Relax! Do not use lights when you don't really need them. In many places it get dark early in the day during the winter and there is a tendency to leave lights on all the time. You don't have too! It's ok to sit in a room that's a little dark during the day to watch TV or get near a window to read. If you are moving around and cleaning then you don't need a lot of light to do that. If it's summer then turn off the air conditioner. If you are hot then get a spray bottle and spray cool water on yourself every few minutes or when you dry out. If there is a breeze the water on your skin and hair will help to cool you off. Buy a child's pool just big enough to sit in and read or have your feet cooling while you enjoy a salad or sandwich outside.

For food and clothes the best advise is old advise. Use it up and wear it out! Stop buying clothes. You don't need a new outfit just because you want it. Go through your closet and see what you haven't worn in a while. Readjust outfits for a different look. Have a clothing exchange with your friends. Make clothes from the cloth and patterns you've had put away for just such an occasion. Most people have more than enough clothes to last them a life time, but if you feel a need to buy something different check out consignment shops first and then thrift stores for great bargains and lots of fun. For other shopping fun look at Craigslist.com for sales and exchanges with like minded others. It's a fun way to start a group exchange and make new friends.

Food. You need to eat and it's hard to get much cheaper than those of us that already live paycheck to paycheck. Watch for sales, but don't drive from store to store to store. You'll use more gas than the few cents you saved on an item and wasted a lot of time. If you really like something then get it, but only get one item of it. Buy pasta, sauces in packages, soup mixes and make you own cakes from an inexpensive cake mix. Buy items you can combined for a larger meal at a cheaper price. Buy and use rice! It goes with almost anything else you make and is a great way to stretch out meat and vegetables.

One of the greatest things I learned and tried is with any left over bits of meat from your meal, place them in a freezer container and freeze. Add a little left over from other meals such as more meat, corn, green beans, soup, sauce, ect. and at the end of the month make a stew. You can always add instant or real potatoes or even just rice. It make a great soup with bread and it's filling. No one will even know it's the end of previous meals brought together one last time.

When spring begins to fill the air try an old way to stretch a dollar on food. Plant a Victory Garden! From the days of wars gone by when food went to feed our men overseas people planted Victory Gardens in the hope of having a little more for their meals in the summer and fall. It's a good way to pay homage to those who gave us the freedoms we enjoyed and for those trying to keep it for us now.

Plant a Victory Garden! If you have a large yard area for this then plant enough to give to neighbors. If you only have a little space or live in an apartment try container gardening. Carrots, spices, parsley, parsnips will grow well in pots. You can get a hanging pot as a one time investment and plant vine strawberries each season. If you like very fresh, no mess gardening then try Mung beans. They can be purchased at most grocery stores in the oriental section. They are really easy to grow and taste a lot better then alfalfa sprouts.

You get a jar and poke holes in the lid. Put in your Mung beans, no dirt, wash daily and set in the sun. They will sprout to a sweet taste within 3-4 days for sandwiches or soups.

Entertainment will be your easiest solution once you get started. Stop eating out all the time. It's expensive. If you want to eat out, but not spend a lot for the entertainment try a potluck with friends or family. An afternoon in the yard with the sun shining down while everyone enjoys salads, sandwiches, bbq, cakes, pies and good old sweet ice tea.

An evening of dessert sampling! Someone brings chocolate, someone else brings vanilla, others bring a combination of fruit pies, custards, pudding, cookies and lots of hot coffee. Have a contest with the winner getting a donated handmade gift from one of the guest.

Have a Mystery party! You are the host and get to decide who will be killed and who will be the killer! Who the other guest are and what their motives are. It's fun to be in charge of the game and with a bit of creative thought you will come up with other ideas too.

Have a talent night. You would be surprised how many people you know play an instrument, sing, dance, tell jokes, do funny things no one else can. It doesn't have to be a good talent, just entertaining and serve lots of good red wine just to get things rolling.

How about a special evening with just your spouse or children. Plan for a movie everyone loves, buy popcorn and soda and have fun. Or spend a day swimming at the local lake or building something with your kids or reading to them or yourself. In other words, just stop and look around to see what you are missing. It can be a great life even without money to pad the fun.

So work hard, work smart and prepare for the coming recession if we have one, but also stop and make time for yourself and family. A recession is hard, but it also brings family and friends together to help each other out and learn how to have fun.