Recession Proof Your Finances

Aug 08, 2023
Recession, how to recession-proof your finances, personal finance made easy, student loan debt, student loans, credit cards, build wealth, investing, save money, build wealth

Are you feeling overwhelmed by the recession talk and inflation? What's bothering me is that everyone's talking about a recession, but they're not sharing any tangible tips on how to recession-proof your situation, leaving you feeling stuck and helpless. Well, guess what? We're not in the business of helpless around here! 

Here are five tips that are very honest and tangible! Let me know what you think, and if you find them helpful, please share them with a friend/family member.

1️⃣ Review your spending from the last three months: Write out your top 5 highest spending categories and see if you can lower them so you can use that money to save more and pay off high-interest debt.

Example: Going out.

Instead of saying, "no going out," (which never works in the long run),

say, "I'm giving myself/us $400 to spend on going out."

Next, ask; What would that look like for me/us? Is that one dinner, a brunch, and a couple of lunches? Or is those two really nice dinners? Does that require you to pay separately in group settings? The more planning you can do ahead of time, the better you are at dealing with unexpected situations in the moment.

Example: Car/Mortage payment.

Is this an opportunity to learn more about Turo, Airbnb or getting a roommate? Just a thought, planting a seed. 

2️⃣ Pretend you're making student loan payments and save the monthly payment instead. You still have two months before payments are due.

3️⃣ Cash is more valuable than POINTS!! There are some fantastic credit card sign-in bonuses right now, and this could be a great time to replenish your point reserve.

The myth about points: "I'm saving all my points for something big."

The reality: If you take advantage of sign-in bonuses, you could replenish your point fund once a year with a new credit card.

4️⃣ Prioritize savings over debt. I know. This is a very sensitive big subject, but hear me out. If you can take advantage of 0% balance transfer credit cards and pay off the debt over 18-21 months, you could gift yourself the time to save. a) saving an emergency fund. b) investing more into retirement. (which is a fantastic idea right now) c) saving for short-term events like weddings, surgeries, vacations, and big purchases.

5️⃣ Nothing will change if you're unwilling to prioritize your financial health. It's incredible how quickly you can turn your financial situation around if you're willing to show up and face it. You can't control a million other aspects of life, but you can control how you feel and think about your finances.

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