This post is a guest contribution from Lucas Weaver of the Yolopreneur.  However,  there were items that needed more direct information, so it is more of a collaboration between Mr. Weaver and Dr. Ackerman; but it was Lucas who first arrived at the subject matter- and the bulk of this post is his thoughts..

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 Recession- no matter how much we try to avoid them, a recession  can strike at any time. (It does appear that the federal Reserve may have found a way to fine tune the inflation-busting effort to avoid putting our economy in a recession, though.)   This is true in times of unexpected crisis, such as what we are facing in the current global pandemic, it is important to know how to manage your household’s finances in a way that will not only help you survive but also thrive. Fortunately, there are many practical steps you can take to make the most out of a difficult situation. Here, The Adjuvancy shares a few to help you get started. 

Take Control of Your Household Budget

The first step towards thriving in a recession is to take a close look at your household budget and find ways to cut down on unnecessary expenses. (This does mean you HAVE a budget!  Here’s a link should you need to prepare a budget for your expenses.)

You may find you need to begin scaling back on dining out (data shows that folks in the bottom half of the economy have been eating out more frequently than those in the top half!) , entertainment, and travel, as well as looking for ways to save on everyday expenses such as groceries, utilities, and transportation. Tracking your expenses and sticking to a strict budget can go a long way in helping you manage your finances during a recession.

Start By Paying High-Interest Debt

Another important step towards financial stability during a recession is to pay off high-interest debt as quickly as possible. This includes credit cards, auto loans, and other loans with high-interest rates.  (We have provided an analysis of this concept previously.  Here’s the link.)  By reducing your debt load, you can free up more disposable income for other important expenses. You should also look into refinancing, if possible and if the rates being charged are favorable to you.

Pursue a Sustainable Business Model

If you are worried about job security during a recession, consider starting a recession-proof business. Many business ideas are less vulnerable to economic downturns, such as repair services, childcare, accounting, security services, and online freelance services. By diversifying your income streams, you can increase your financial stability and reduce your risk of losing your job.

Build Resilience Into Your Financial Investments By Diversifying

One of the most important steps toward financial stability is to diversify your investments. This means spreading your investments across a range of assets, such as stocks, bonds, and mutual funds. By diversifying your portfolio, you can reduce your risk exposure and increase your chances of weathering a recession without major losses. 

Protect Your Home with a Warranty

Protecting your home with a home warranty is a wise decision for several reasons. Comprehensive home warranty coverage can save you significant money on expensive repairs and replacements of home systems and appliances, providing financial peace of mind. Such coverage is especially beneficial for older homes where systems and appliances might be more prone to breakdowns. A home warranty simplifies the repair process, as it typically includes a network of vetted service providers, eliminating the hassle of finding and vetting contractors yourself. Having this coverage can increase the value and attractiveness of your home if you decide to sell, as potential buyers appreciate the security of knowing that major systems and appliances are protected.

Find Ways to Manage Financial Anxiety

It is important to find ways to manage any anxiety related to financial worries. This may mean seeking professional counseling, practicing relaxation techniques such as meditation or yoga, or finding a support group of like-minded individuals going through similar experiences. (The online services like BetterHelp have gotten pretty good reviews- reasonable costs and personal success!) Taking care of your mental health is just as important as taking care of your finances.

Save and Organize Your Professional and Financial Documents

Converting your professional and financial documents into PDFs is a simple yet crucial step to ensure that they are viewed and shared seamlessly across different devices and platforms. By converting your documents into a PDF format, you can preserve the formatting, fonts, and other design elements of the original file. Additionally, PDFs offer enhanced security features such as password protection and restricted access.

There are many practical steps you can take to not only survive but thrive in a recession. By managing your household budget, paying off high-interest debt, considering recession-proof business ideas, diversifying your investments, and finding ways to manage financial anxiety, you can increase your financial stability and reduce your risk of major losses during tough economic times. Remember, preparing for a recession is not just about financial planning but also about taking care of your mental health and well-being.

For financial, managerial, and technical services to grow your bottom line, contact The Adjuvancy today!