Bulletpoof Your Finances with Lessons from the Recession

photo credit: uberzombie

Have you been depressed around the impending recession or how we’re stuck in stagflation? What if there was a way to bulletproof you finances with lessons from the recession? Well, if you ever wanted to get tips on how to solidify your finances during this depressing time, this post is for you.

There have been numerous articles discussing the state of the US economy today and why we are closer to a recession more than ever. You can read more about why we are closer to a recession, here.

So how do we ensure our finances will be ok even with all this talk of economic doom and gloom? We go back to basics and put it in overdrive. Think of it was Personal Finance 2.0 if you will. Not only will we have to think about how to find cheaper alternatives for the things we love, but we have to make sure we increase our emergency funds, cut back on our favorite non necessity items, increase our income and re-evaluate our current job situation. All of which we will discuss here:

Find Cheaper Alternatives

I discussed Cheap Alternatives for the Must Haves in your Life previously which can be found here: Part One, Two, and Three. Some may consider tightening things up financially and decide if some must haves are necessary in the following areas:

• Cable/Internet/Phone
• Gym Membership
• Mobile phone plans
• Trim Grocery/Food Costs
• Cut Down on Eating Out
• Revamp Your Wardrobe with Minor updates, not the typical seasonal overhaul (I’m guilty of this!)

Increase Your Emergency Fund

If you haven’t already started an emergency fund then you need to start one ASAP! An emergency fund should be funded to cover at least 3 months expenses but I would recommend at least 6 months during these times. You’re probably saying how can I increase my emergency fund unless I get a part time job? Well you’re right. I do suggest that you can get a part time job that won’t be as taxing as you primary job may be. Some include:

• Dog Walking
  • There are many companies here in the DC area that are actively looking for dog walkers and pay on average $16/hour. You generally have to be available in the mornings, midday, evenings or weekends. Most companies are flexible because some of their walkers are people with full time jobs. Yours truly plans to take on a PT dog walking job to earn extra money and get in shape! So it’s a win-win situation.
• Get a Telecommuting Part Time Gig
  • Rat Race Rebellion and Work Place Like Home are EXCELLENT resources for jobs that don’t require you to commute into an office thereby saving you time, energy and gas. Some companies include VIP Desk and 1-800 Flowers.
  • Mystery shopping pays pretty well depending on the company you sign up with. Keep in mind you should never pay to become a mystery shopper unless it involves notarizing you paper work. Check out the Volition Forums for companies hiring right now.
• Work Overtime
  • Check with your employer to see if you’re eligible for overtime to able to take on some extra projects. This will increase your paycheck and gain points with your employer.
• Part time Evening and/or Retail
  
  • Some retailers tend to hire seasonally and some just need the extra help throughout the year. Check with your local malls to see who’s hiring and if the hours are a suitable fit for your current schedule
• Other ideas…
  • Have a garage stale
  • Sell old or unused items on Ebay
  • Set up a staging and/or de-cluttering business helping sellers get their homes together or a family to de-clutter their home, I’d certainly do this if I had the time

Reduce Consumption

• Especially in the areas of utilities and gas. Can you seal your windows and set your thermostat a bit lower during the day? What about planning your day so that you get everything one trip instead of just driving around every time you need something wasting more gas and time. Think about the different areas where you can cut back and put that money saved towards your emergency fund.

Pay Down Debt

• This goes without saying but warrants a mention. Single Ma posted a really great YouTube clip, Maxed Out which discusses the use of credit card debt as modern slavery. This means that you’re working just to pay off a debt, when we really want to be working to increase our wealth.

Re-evaluate Your Current Job Situation

• Pay attention to company news and any changes in your company policies which may be an indicator of their financial health.
• Start networking with others in your industry to get a sense of what jobs are available. Here in the DC metro many jobs are gained by who you know, not by what’s on your resume.
• Don’t Burn Bridges. Ever. Even if someone burned a bridge to you, always keep that door open. You never know when that person may come through for you in the clutch, they may be your saving graces during these times.
  

There are important lessons to be learned about the impending recession. It teaches us that we should always be on the ball regarding having an emergency fund, reducing areas of excess and remaining mindful of our job situations so as to mitigate any unforeseen events. After all we don’t have control over what happens but we can at least be prepared for it.

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