Being Financially Savy In A Recession
Posted on August 30th, 2011
Making smart financial decisions is important at anytime, but it-s even more important in a recession. Here are a few suggestions that might help.
First, sit down with a pen and paper or a laptop. List all of your absolutely necessary monthly expenses, such as your mortgage, utilities and food. You should have enough money put aside in a money market or savings account to pay these expenses for six months. If you don-t, you need to start saving immediately toward that goal. Even if it-s only a few dollars per paycheck, start saving.
Then make a second list that includes all of the other expenses your family has. Take a good look at the list. Can you make do with less? Can you get by with one car less? Can the family go camping at a state park instead of spending a week at an expensive resort? Can you increase the deductibles on your insurance so that your premiums are less? Look for ways to cut or eliminate expenses.
Finally, you need to invest for the future. Recessions pass. We all need to invest so that we can handle education costs for our children and retirement costs for ourselves.
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