How To Recession Proof Your Money
I don't think anyone would disagree...we are currently living in Murphy's Law. COVID-19 has wrecked so many things in our world. Your finances shouldn't be one of them. And though we aren't technically in a recession it's not too late to make sure your money is ready.
You need a bulletproof plan for your money. Imagine being able to weather any storm that comes your way with a plan that works in any season.
Here are 4 ways to recession proof your money
___________________________
1. Tell Your Money Where to Go With a Budget.
When you don't tell your money where to go it's like going on a trip without a GPS. You get lost and it spoils the whole experience. During a recession or crisis, decide to make money the least of your concerns. Otherwise, the crisis will cause upheaval and uncertainty.
The most effective way to do that is by taking the time to understand what's coming in and what's going out each month.
Get started by doing a monthly budget.
• Gather all your income.
• Gather all your expenses.
• Write it all down and decide how it gets spent before the next money begins.
• Track when month comes in and goes out each day.
A written monthly budget tells your money where to go. I recommend the EveryDollar budgeting app. It's highly customizable and makes it easy for you to stay on track.
2. Get an Emergency Fund in Place.
Money in savings puts a cushion between you and the "what ifs" of life. Savings can keep you out of debt when something out of the ordinary happens - like COVID-19.
Try and get $1,000 into savings as fast as you can. Here are 10 ways to get some extra money that might not take too long…
Get rid of debt
Cut back on groceries
Cancel subscriptions
Slower data speeds on home internet/cell phone
Stimulus check / tax refund
Reduce energy costs
Stop email marketing
Have a monthly budget
Find things to sell
Set up automatic saving with your bank
3. Get Out of Debt As Fast As You Can.
Credit cards, car payments, and student loans have become a major source of stress for most Americans. Debt can grow exponentially during a recession because people feel unstable with money.
Use the debt snowball method to get out as fast as you can:
Step 1: List your debts from smallest to largest regardless of the interest rate.
Step 2: Make minimum payments on all your debts except the smallest.
Step 3: Pay as much as possible on your smallest debt.
Step 4: Repeat until each debt is paid in full.
4. Reduce Overspending on Non-essentials.
Many people overspend on things they don't really need to impress people they don't know. Overspending during a recession can and will be a major set back.
Having goals will curb overspending and will give your money a purpose. Goals will keep your money moving in the direction you want during a recession.
___________________________
Have you ever wondered what it would be like to have a recession proof plan for your money?
Did you even think that was possible? It is.
Don't wait until the next crisis. Get ready now.