Talk of recession can inspire fear and leave families scrambling for ways to survive. Intelligent folks often take advantage of downturns to get ahead financially. Today, STEM Voodoo shares some tips to help you thrive during an economic slump.
1. Manage Stress
Study business cycles to create a more robust plan for getting through the recession. Experts calculate that the average recession is only 10 months, so you can be back in stable conditions within a year or two.
2. Reexamine Your Budget
If you’ve become lax on keeping up with your financial plan, review your income and expenses to ensure you’re not wasting money. Work together as a family to tighten your belts.
3. Save More Cash
Build an emergency fund so you don’t rely on credit cards for a medical event or significant repair. Put aside $1,000, then increase savings. Sell a few things to get quick cash on hand.
4. Start a Side Gig
Many companies look to hire freelancers who work on their own time instead of investing in full-time employees. The extra income can cover the slack if you lose hours or are unemployed for a while. Make sure you give yourself an advantage over the competition and use a resume template to highlight your skills, though.
Or if you have an idea for a new business or side gig, test it out first by creating a survey to see if people would be interested in it. You can get more input by adding a small incentive to participants. Use a platform that allows you to easily reward respondents after they complete your survey. Some of these tools also integrate marketing strategies to ensure you get a wide variety of input, so look for those options.
This may also be the perfect time to continue your education or re-up your certifications. For example, accountants and finance professionals can distinguish themselves with a CSCA certification. Other professional development courses can refine your business skills and boost your confidence.
5. Strengthen Your Network
Relationships are the lifeblood of all business and earning. Keep your opportunities open by maintaining strong networks. While most companies may be faltering, other industries boom during a recession. Your connections can be a safety net for work or partnerships.
6. Reduce Your Debts
When inflation is rising, the Federal Reserve generally raises interest rates. Variable rates increase, making your debts even more costly. Pay down or eliminate high-interest debts to save money.
7. Start Deal Hunting
Coupons and special deals can cut expenses. The Sunday paper still offers many coupons to local businesses, so consider a subscription to just the weekend news. Check product reviews and read ratings to find products and services that are worth the money. Instead of buying groceries on autopilot, see where you can find a better deal or save in the long run by purchasing in bulk.
Download apps at your regular stops to access top deals and rewards for repeat purchases. Sign up for email newsletters to find out when your favorite stores have sales or give you an anniversary or birthday discount.
Another area to save is by switching services. Car and renters insurance can creep up gradually, so shop rates at other companies. Pause unnecessary subscription services and threaten to stop others to see if the business offers you a deal.
8. Save on Utilities
Lower your bills by using energy efficiently. Stop taking baths and limit your time in the shower. Check your internet plan to see if you can secure a better rate or step down a tier. Reduce energy costs by using your fireplace to warm your home instead of always using your HVAC system.
Find a local provider to deliver firewood. Prices depend on your season, location, wood type, and cut. Softwoods may be less expensive, but hardwoods like elm, maple, beech, and birch are better for burning.
Find the Bright Side
Prior planning can turn an economic downturn into a financial upswing for your family. Look for ways to save and make wise career and investment decisions to remain stable during a recession.
Keep your kids entertained while helping them to develop valuable STEM skills through STEM Voodoo, a free resource for everyone interested in science, technology, engineering, and math!
Image via Pexels
If you would like to subscribe to the STEMVoodoo.com mailing list, please enter your first name and email below.