Pay-check to Pay-check: How to Survive Recession?

The Great Recession which began in the end of 2007 until mid-2009 has left many people jobless and with no source of income. Many families have had to make adjustments and cut their expenses so they could get by. But for some, staying afloat during these tough times has been difficult. Fortunately, things are looking up now. The economy is growing again and unemployment rates are getting better. But for those who have struggled in the past few years, it might feel like you’re still stuck in a cycle of pay check to pay check – especially if you live in an area that has struggled to recover from the recession. However, even if you’re currently living on a tight budget, there are ways you can ease your financial strain and improve your long term financial situation without having to sell your house or give up your car!Here are some useful tips on how you can survive recession -

Make a budget and stick to it

This is the best and most effective way to survive during a recession. First of all, make a realistic budget that considers your expenses and income. Make sure your expenses don’t exceed your income. This budget will help you know how you can spend your money on your daily needs without incurring debt. Next, make sure you stick to this budget. It’s easy to get into the habit of overspending, especially if you’re used to living on a higher income. But living on a tight budget during a recession can help you get out of debt and build up savings. Plus, it will make you more financially secure, even after the recession ends.

Click here to Take A Quiz and Find out what is Holding you back and How to get Started.

Consolidate your debts

If you are paying off multiple credit cards and other high-interest loans, it might be a good idea to consolidate these debts into one lower interest loan. This will save you money on interest and will also help you keep track of your finances better. If you can’t consolidate your debts yourself, you might consider talking to a credit counselor. You can find a local credit counselor through the National Foundation for Credit Counseling. Credit counselors are trained to help people get out of debt. They’re not financial advisors, but they can help you understand your options. While this might not be the best way to survive the recession if you want to build up your savings, it can help get you out of debt faster.

Outsmart your loan providers

If you are paying off a student loan or a car loan, try to negotiate with your loan provider and ask for a lower interest rate (or no interest at all). If you have good credit, you might qualify for 0% interest offers. However, this might not be applicable for loans that are backed by the government, such as Federal Direct Student Loans. If you are having trouble making your payments on time, talk to your loan provider. Your loan provider might be more flexible if you make the effort to work with them. Be sure to do your research before making any decisions – there are many scammers out there who will take advantage of your situation.

Ditch the big box stores

Big box stores are convenient, but they can also be costly. By shopping at small, local stores, you can save money while supporting your local community. Plus, many small stores offer discounts to senior citizens. If you need to buy new clothing, go to a thrift store. You can often find good quality clothing at low prices. If you need to buy new furniture, look at garage sales or used furniture stores. You can often find good quality furniture at low prices. If you have a car, make sure it is in good condition and has low mileage. If you need to buy a new car, consider buying a used car. Used cars are often cheaper than new cars.

Try out frugal habits

If you want to reduce your expenses, there are some frugal habits you can try. Make your own coffee at home. You can save a lot of money by making your own coffee instead of going to a coffee shop every day. Stop eating out as much. Eating out is one of the most expensive ways to get your meals. Not only are you paying for the food, but you’re also paying for the water, electricity, and labor used to prepare your food. If you can, try to cook your own meals at home. Carpool with your friends or co-workers. This is a great way to save on gas. If you have to drive to work, you can try carpooling with your friends or co-workers. You can also try using public transportation if your area has a good system.

Conclusion

The Great Recession was a challenging time for many people. It can be even more challenging to survive a recession if you’re already living on a tight budget. Fortunately, there are ways you can ease your financial strain during a recession. First, make a budget and stick to it. Then, try to negotiate with your loan providers and consolidate your debts. Finally, try out frugal habits to cut your expenses. These tips will help you survive the recession and come out on top.