For many Americans, this economy has gone from bad to worse. Most economists say we are not in one yet, but expect a recession to hit within a year. What can you do to prepare to financially survive a recession if and when it hits?
You may have heard the saying, “Hope for the best, but plan for the worst” which is good advice. Below are a few tips that can help:
Thoroughly track and review all of your spending for ways to reduce or eliminate some expenses. Saving even just $10 a month on five expenses will give you an extra $50 each month. It adds up.
Focus on increasing your savings. Set savings goals and use any money from decreased spending, plus extra money from any job bonus, yard sale, etc., to boost your savings.
Don’t overdo paying down debt. That may sound like strange advice. Paying down debt is a good thing, of course. But too much of a good thing can be bad. For example, if you owe $3,000 in credit card debt, have $3,200 in savings, but decide to fully pay off that debt all at once, it would leave you with virtually no savings at all. If an emergency should soon hit, such as needing $500 for a medical issue, you would not be able to cover that emergency with only $200.
CCOA has helped thousands of people achieve their financial goals and can help you, too. For more strategies and a free budgeting/financial counseling appointment with a caring financial professional, contact CCOA at 479-521-8877 or schedule an appointment online. Appointments are available in person, by phone or online.