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Despite the fact that experts have yet to issue an official confirmation, the U.S. is, by historical standards, in a recession.
If you hope to thrive in the upcoming economic downturn, heed history’s warnings and take steps to recession-proof your life sooner rather than later. Here are some tips to get you started right.
1. Reconsider Your Household Budget
Americans spend a whopping 82% of their after-tax income on household expenses. This percentage is set to only increase, as recent analyses show that the cost of household expenses has jumped by 6% in the past year.
While there is nothing you can do to stop the rapidly rising costs of living, you can take steps to offset its impact on your household. For starters, revisit your budget.
Identify non-negotiable costs such as rent/mortgage, utility payments, car payments, loan payments, and basic food costs. Add up the cost of each and set aside, at a minimum, that amount each month.
Next, review your spending and identify areas where you can make cuts. Can you eliminate your cable bill? What about reducing the amount you spend on eating out?
Also, look for ways to reduce your utility bills. For example, instead of running your furnace all winter, consider getting a wood-burning stove.
You will have to pay for wood, but the cost of a cord — which runs between $150 and $500 — is far lower than what your energy bill would be after a month of continually running your HVAC system.
To make your money stretch further, purchase hardwoods, like oak, maple, elm, and beech, which burn longer than softer woods. Search here to find firewood for sale near you.
2. Be More Intentional in Your Spending
Instead of trying to “spend less” in the months to come, spend with intention. Before you make a purchase, ask yourself, will you use the item frequently, or will you relegate it to the back of a closet after one or two uses?
If your response does not confidently fall in the former camp, forgo the purchase. Also, to ensure that everything you buy has staying power, read reviews and ratings.
Now is not the time to spend your money on items that will rip, tear or break after just a few uses.
3. Pay Down High-Interest Debt
Debt is a huge issue in America right now, with the total aggregate household debt at a whopping $14.6 trillion.
Pay down your high-interest debts first before you start tackling others.
4. Find Ways to Earn More Money
There are dozens of gigs you can do to bring in between $1,000 to $2,000 in extra income each month. Many of these jobs are flexible and require little to no prior experience or knowledge.
If you’re not interested in side work, visit Workers.com to find a better-paying job. Before you apply, put some time into creating an impressive resume with help from a resume template.
Many online platforms offer libraries of templates, which you can easily edit with your own photos, fonts, colors, and copy.
5. Clip Coupons
Finally, if you’ve foregone coupons until now, make this year the year you start clipping. Coupons may be a hassle, but they reduce the average grocery bill by at least 7%.
Though 7% may not seem like a lot, it can add up to an extra car payment by the end of the year.
From reconfiguring your household budget to finding a new job, there are a few steps you can take to recession-proof your life. Start working today to secure your finances for the months to come.