We've been saying for some time now that the U.S. economy is in a recession. The "official" definition tells us we need to have two back-to-back quarters of negative growth in order to toss around the dreaded "R" word.

Well, that hasn't happened (YET), but we have seen plenty of negativity – in home foreclosures, job losses, bank shutdowns... not to mention, of course, our beloved stock market.

Relax. This tough time will pass. And there are things you can do to not only get through it, but to thrive and come out the other side in top shape.

#1: Stock Up On Emergency Funds

Remember how Aunt Mary kept a wad of cash in her dainty little sugar bowl? (She was smart ? that Aunt Mary.)

You never know when you'll find yourself in a tight spot ... so rather than dipping into your regular savings account (or, worse, having to BORROW funds from a bank line of credit or credit cards), start an "emergency fund."

Just be sure to add a pre-set amount to it every month. You'll probably need to make sacrifices in order to do so, but don't worry — it'll be worth it!

Shoot for a fund that would cover three to six months' worth of living expenses. That way you'll be well-prepared for a sudden case of unemployment or other financial catastrophe!

#2: Cut Credit Card Spending

Unfortunately when cash is scarce, many of us turn to credit cards to help make ends meet. And while they can be a very useful part of your financial arsenal, they can easily turn into an enemy if you're not careful!

What to do? Cut up all but one or two cards and — whatever you do — don't put more expenses on them than you can afford to pay off IN FULL each month! 

If you're already saddled with a large credit card debt, work toward paying it off as quickly as possible. Once again, it means you'll have to cut back on those little (and big) "extras" in your life. Check out six simple steps to becoming debt-free in Pay Off Those Credit Cards NOW!

#3: Build (And Live Within) a Budget

A well-planned budget is a beautiful thing. It can help you cut back in areas where you spend too much. It can also help you SAVE more — for your kids' college, your retirement or that next inevitable downturn.

First, figure out how you spend your money now — track all of your income and expenses for a month or two. Be sure to count even the most seemingly minor of expenses — including that $2 cup of joe from your neighborhood café.

Once you know how much you spend, you can figure out where to cut back. THAT is how you can come up with a realistic number you can actually SAVE every month! (By the way, we've got an easy-to-use calculator that can help you figure out your exact expenses each month — check out How Much Am I Spending?)

Remember: Be realistic, stay focused ... and keep socking away that cash for those rainy days ahead!

#4: Revise Your Investments

If you want to grow your investments in both good times and bad, it may be time for you to get more conservative. Meaning if you can't wait for this market to turn around or just aren't comfortable with the volatility, you should avoid stocks altogether.

Look at safer alternatives such as Certificates of Deposits (CDs), short-term bonds and bond funds, U.S. Treasury Inflation-Protected Securities (TIPS) and asset allocation funds such as those offered by Evergreen or Ivy.

And don't forget one of our 10 rules of investing: Know thy sleep quotient! If you're staying awake at night worrying about money you have invested in stocks, you're better off playing it safe and getting a good night's rest. (See the rest of our 10 Rules of Investing.)

#5: "Work" to Ensure Job Security

If you currently work in an industry that's on its way down — or if you're concerned about future job security for ANY reason — consider a career change.

Look at industries that will thrive for years to come, such as health and technology. At the same time, steer clear of problem industries — including construction, real estate, banking and retail ... just to name a few.

Once you've decided on your new path, further your education with courses and seminars. Your current company may even cover your educational costs — so take advantage of it!

And don't forget to network, network, network. One day, those contacts will come in handy!

#6: Save More at the Grocery Store

When money is tight, even the most basic of necessities can take a huge bite out of your income. Case in point: FOOD. Sure, we can't live without it, but we sure can live without its ever-rising prices!

Look for ways to save even more on high food costs. Buy in bulk ... but only buy non-perishables so you never have to waste food because you can't eat it fast enough. If you want to save on perishables like produce, look for locally-grown fruits and vegetables.

And, for heaven's sake, ditch the name brands. You'll get cheaper (and often just-as-tasty) options by buying store brand. And don't forget to check out grocery coupon web sites such ascoupons.com, thegrocerygame.comand CoolSavings.com.

Find out more ways to save at the supermarket — check out Insider Supermarket Shopping Tips.

#7: Save More at the Pump

Gas is another everyday must-have that can really wallop your wallet. Take some action steps now and you can save a bundle every month ...

First, ask your employer if you can work from home one or two days a week — many companies are shifting to this new policy, thanks to skyrocketing gas prices and the earth-saving trend to "go green."

If you must commute (and if it's feasible), take public transportation to work. But if you absolutely have to drive your own car, keep it well-tuned to get the best gas mileage ... and, for Pete's sake, SLOW DOWN!

To find the lowest gas prices in your area, visit GasBuddy.com orFuelMeUp.com. (Also see Fight High Gas Prices: 5 Simple Tips!)

#8: Slash Your Energy Costs

Thanks to rising fuel and coal costs, our gas and electric bills are heating up every day — in fact, they're about to burst into flames!

Not a good thing for times like these. Every little bit counts, so consider the following energy cost-cutting measures:

• Install surge protectors on any appliances that stay on all day.
• Keep your fridge full.
• Blanket your water heater.
• Use a programmable thermostat.
• Find and plug leaks in your ductwork.
• Check your insulation – if it's not up to par, fill in the gaps!

There are other ways you can cut your energy costs AND be eco-friendly at the same time. See Save Those Greenbacks ... by Going Green!

Bottom line: Spend less, cut every day expenses, and save more. You'll soon be sitting pretty during this challenging time ... as well as the tough times ahead!

#9: Re-Evaluate Your "Stuff"

At a time when wages aren't keeping pace with inflation and housing values are declining, it's getting tougher to make ends meet. But don't give in to despair.

Take a look around you. If you're like most Americans, you've probably amassed a lot of "things" that you could easily live without. Now is the perfect time to collect those items and have a yard sale or list them on eBay to collect some extra cash. You'd be surprised at how valuable some things are! ReadCould Your Trinkets Be Treasures?

If you don't want to sell your things, donate them to charity to help someone in need and give yourself a nice tax deduction.

                                                                          

~ Yorebiz Administration ~

Tags: Articles Advice Mentoring Economy Jobs Invest Save Bank Mon

Bookmark: