Prepare for Coming Economic Hard Times – Suggestions

Hi friends, I’ve been doing a lot of research into economics, financial management and the lessons I learned from the 2008-09 recession.  I was an Employment Counsellor in North Turtle Island (Canada) during that year (2009), and remember how many people were laid off due to companies closing, American branches here slowing down, those selling to the US unable to do so, etc.  People on the verge of personal or small business bankruptcy.

How about now?

The governments worldwide borrowed money and went on a spending spree to solve the problem.  Now we’re all in debt, and Canadian personal debt is at sky high record levels.  When another crisis happens, will we be able to spend ourselves out of it?
The economy seems to be quiet now, like the calm before a storm.  The only responsible thing is to prepare for the inevitable, and to be optimistic that we will make it and find ways to survive.
Here’s something I found on the Net today, with many practical suggestions to get ready for whatever may happen economically in Canada, US and elsewhere.  I and my family are working on these items, and I hope that you will too.  To be forewarned is to be fore-armed.
Listed out:

– Build up a safety nest of at least six month’s expenses.

– Don’t live within your means, live below your means. The bigger the margin, the more you save.

– Get rid of debt. If you have investment properties, consider selling them as soon as possible, as this winter may be too late.

– If you have a mortgage on your home with a floating rate, consider locking in the rate for between three to five years. Similarly, with lines of credit that you cannot pay off. Interest rates may jump without warning.

– Pay off your higher interest rate debt, such as credit cards, first.

– Look for a secondary source of income to increase your safety net, such as a part-time job or by renting out an eligible basement.

– Expect a lot of volatility in the stock markets. If you have money invested in the markets that you may need soon, you shouldn’t be in the market.

– We are entering an age of frugality, so be frugal, but not cheap.

– It would be wise to put off big-ticket purchases and make do with what you have.

– If you are considering selling your home to buy another, make sure yours is sold first or you risk being stuck with two homes and extra debt in an uncertain economy.

– Think twice about quitting your job.

– Reconsider whether you need all the cars you have. Each car has hidden costs.

Ways to save money:
—————————–
1) Pack your lunch at the same time drop $8.00  in a piggy bank to see how it grows

2) Stop paying tips

3) Walk , bike or take public transportation

4) Do washing in the weekend

5) Get out of gas contract (check your bills)

6) Shop for cheap car insurance

7) Buy less clothes, shoes etc…

8) Check your credit card bills to see where you spend

9) Stop paying to your RRSP and think about saving first for rainy day

10) Take a part time job

11) Study to get a better job

12 ) Cut cable TV

13) Move away from expensive carriers ( for internet and cell phone )

14 ) Don’t buy any new electronics or furniture

15 ) Stop going to Starbucks or Tim hortons

16) Watch movies at home, with DVDs from the library, etc.

As practitioners of the sport Parkour say: “BE STRONG TO BE USEFUL“, which includes financial strength.  Money is not our god, but we sure suffer without it.  Let’s all take whatever steps we can to be responsible for ourselves, our families and communities.

Do you have any other tips for surviving the coming economic hard times?

Cheers,

Dimitri

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About sleepless in turtle island

Hi, I´m Dimitri. I have lived in Turtle Island for awhile now, so my cultural understanding is slowly improving. Also, I can see things in this place that boggle my mind. Thus this blog...
This entry was posted in Politics - Canada, Politics - International, Politics - US, Uncategorized, Wise Advice - Although I'm Not Too Wise and tagged , , , , . Bookmark the permalink.

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