What are the Best Tips for Surviving Recession?

Sheri Cyprus

The best way of surviving recession can be summed up into spending less, earning more and having a good savings strategy. Enacting all of these aspects together is important since, during recession, it may be more difficult to do all of them than in more positive economic conditions. Also, spending money affects both your earnings and savings since the more you spend, the less of the other two you have left.

Securing a part-time job increases cash flow and absorbs the shock of potentially losing a full-time job during a recession.
Securing a part-time job increases cash flow and absorbs the shock of potentially losing a full-time job during a recession.

The first thing to concentrate on during a recession is to protect your home. Many people lose their home during economic downturns. Surviving recession means being able to pay your monthly payments. Starting an emergency savings plan before recession hits can help you hold on to your assets. The goal of an emergency savings plan should be to have at least a year's worth of living expenses, including mortgage or rent payments and utilities.

The sooner you can stop buying things you don't really need, the better prepared you'll be when the economy isn't strong. If you rent rather than own your home, you don't have it as an asset; if you can find a lower cost rental to save money, it may be a good idea. However, the quality of your living surroundings is something you shouldn't compromise on unless it's something you'll need to do because you won't have enough savings. Building up emergency savings no matter how small is a vital tip for surviving recession. If the worst happens and you lose your job like many others do in an economic downturn, your emergency savings can help you survive.

Having a part-time job, or a weekend hobby that you make money at, is another great way to prepare for recession. If you do end up losing your main job, you may still to have your part-time income source. Saving emergency money from both jobs to use in recession is the best way to be prepared for work loss.

Surviving recession requires people to rethink how they work. Becoming an entrepreneur may be the best thing you can do if you have no, or low, start-up costs and will make money right away by filling a workplace need. In general, health care, government and critical industries offer better work prospects during recession than construction, real estate and luxury markets.

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