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?
– 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?