10 Ways to Beat the Recession

Although the recession supposedly ended last year, many of us are still feeling the effects of it.  My husband e-mailed me this article and I thought it was worth sharing with the rest of you. If you're like me, you're concerned about the effects of a recession on you and your family. Many people feel like they are powerless to change the economic situation and that adds to their feelings of anxiety. The author of this article, Brian Reeder, did some research and found some simple things you can do to beat the recession.

1. Network - Networking is a great tool to maintain a large group of people that can help you if need be. It keeps potential income options open, and by consistently expanding your network, you’re consistently expanding your income opportunities. Plus, if you’re in a crunch and need some cash, it’s better to be able to ask 50 people than 5. The Key: Be yourself! Get to know the people you meet, show them who you are. Someone who knows you and is interested in who you are is much more likely to help you out than someone you met once and exchanged business cards with.
2. Establish a personal budget - This is something that seems like common sense, but a surprising number of people have never done it. Once you get all your expenditures on paper (or the screen), it’s much easier to see where your money is going and where you need to cut back. The Key: Find a system that works for you. Having a spreadsheet may work for someone, but may be a headache to others. The biggest reason people don’t establish a budget is because it’s time consuming - use a free program like expensr to eliminate this time waste.
3. Understand what a recession is - What is a recession? How about a depression? Aside from the depr v. rec, I had no idea. Now I know that “The economy will typically expand steadily for six to 10 years and then enter a recession for six months to two years. The point where the recession begins is known as a peak, and the point where it ends as known as a trough. Following the trough, the economy expands again toward another peak.” (howstuffworks) So the recession is really a healthy phase in the economic cycle, it's just awful being in one. A depression on the other hand, is a long-term economic state characterized by unemployment and low prices and low levels of trade and investment.
4. Get out of debt - this is easier said than done, but the first key is to eliminate credit card debt. If you have thousands in credit card debt and have money in the bank to cover it (and still have a healthy buffer), pay it off. Your savings in interest payments every month will justify this pay-off within months, not years. If you don’t have the cash on hand to pay off that debt, pick up a part-time job solely to make payments on it. I know that some people can’t do this, but they may be able to use the next tool.
5. Consolidate your debt - The best way to consolidate your debt is not through some shady website that just wants your information. It’s going to your financial institution and asking them how. They will be more than willing to help - they want you to be able to make the payments every month. If you find someone that won’t help, go to another branch, or another bank. Smaller credit unions are usually the best to deal with - they act like real people. For the most part.
6. Find part-time work to supplement income - Find an industry that doesn’t require prior experience or education, and minimal training. Also find an industry that isn’t going anywhere, and will survive through the recession. My advice: get a job in the service industry. You can find a job in practically any industry on craiglist. Find something you enjoy doing and don’t have to go to school for. Plus, tips are NOT a bad thing.
7. Have a back-up fund - One of the biggest hurdles people will have to leap over is losing their job. It is (usually) an unexpected problem, and never a welcome one. The best thing to do is plan for it. Make sure you have a minimum 3 month buffer in your bank account so that you can survive after it happens. Unemployment will only cover part of your expenses, and the problem people get into is getting multiple credit cards to cover the remaining expense. Then, even if you find a job, you have a mountain of debt to get over, immediately putting you in the red and stressing you out.
8. Focus on the basics - Frivolity has to be the first to go if your budget is tight. If it’s the difference between paying rent and going out to dinner, hopefully the decision isn’t a difficult one. But, this is dependent on making a budget - if you don’t know where you stand, how can you know what you have to spend? This isn’t to say you shouldn’t have fun though - you just need to find alternative ways to have it (see below)!
9. Have a secure place to keep your money - Both in your bank, and in your pocket. I would suggest carrying your wallet in your front pocket, and keeping minimum cash on you. If I have cash I will spend it. I know that, so I make it a point to only take with my what I can spend. Also, make sure you have all the necessary phone numbers and account numbers written down in one place, outside of your wallet. That way if your wallet gets stolen, you can easily call and cancel your credit cards.
10. Be happy - Find cheap/free ways to find happiness. Go to the park, take a walk, get books/movies from the library, have a “cooking night” with your friends where you all pitch in. Their are a lot of ways to enjoy life without spending money. As the quote says, “the best things in life are free”…

Source: brainfeeder.com