Recession Survival Skills

Let’s face it – the economy is not getting any better anytime soon. The numbers are written on the wall. Signs are all over. The stimulus check program, while not a miserable failure, didn’t exactly prove to boost anything. Families who received this extra $1,000 to $2,000 probably used it to pay for gas, rent and put food on the table. I don’t think they will be thinking about a flat screen TV, Xbox 360s or a new car.

Thousands continue to lose their jobs. Company revenues are slim. Making things worse, natural disasters like the Iowa floods, mid-west tornadoes and international catastrophes in China and Myanmar couldn’t hit with better timing. Also not forgetting the infamous Bush’s anti-terrorism war that is taking a financial toll on U.S. economy. So enough with the sad news. Here are a few things people, and you can focus on during times of financial distress and uncertainty.

1. Shopping from online stores that offer coupons and instant rebates. Some popular coupon sites include coupons.com , fatwallet.com and couponmountain.com to name a few.
2. Those coupons you get when at the grocery stores – keep them and find use for them. 50 cent savings can go a long way if you’re planning to stocking up.
3. Now is not the time to worry about going Green or not. At least not for the short term. While I do encourage Green products, I would advice you not to go out of your way to Greenify your life. It’s not essential to surviving a recession.
4. Hold off on any home remodeling, upgrades, etc. Case in point, my father-in-law wanted to spend $2,000 installing new carpet. I discouraged him and instead to keep the money in the bank until September to see how things shake out – in Michigan! Carpets will always be on sale, but $2,000 is hard to come by these days.
5. Going on vacation this year? Hold that thought! Unless you have cash reserves in savings (6 months worth), and have a separate “Holiday Savings” budget, you might want to think twice about spending money on that weekend in Vegas, family vacation to Niagara Falls or a flight to Hawaii. Missing a vacation won’t hurt you. But spending the $5,000 on a vacation, well, as much as memories can be created, photos and videos taken, blah blah blah, that $5,000 is gone gone and gone. If you lose your job or need back-up cash, don’t count on getting reimbursed by the hotels or airlines
6. Last but not least, please don’t slack at work – maintain your work ethics and do all you can to keep your day job. You owe that to yourself.

One Thing You Should ABSOLUTELY NOT DO!

1. Do not, absolutely DO NOT cash in on your 401k or Roth IRA accounts. Try your darnest to find other ways to borrow cash before destroying your retirement. Easier said than done, but its one of those things that you will regret doing for a very very long time.

So there you have it. In my limited wisdom and having been a victim and survivor of the dot-bomb, I feel I am better prepared for a recession this time round. I hope you are too.