𝟱 𝗠𝗼𝗻𝗲𝘆 𝗦𝗮𝘃𝗶𝗻𝗴 𝗧𝗶𝗽𝘀 𝗧𝗼 𝗦𝘂𝗿𝘃𝗶𝘃𝗲 𝗔 𝗥𝗲𝗰𝗲𝘀𝘀𝗶𝗼𝗻

With rising debt levels, fluctuating markets, and rising oil prices, having some money-saving tips under your belt could be a lifesaver so that when worse comes to worst, you’ll know how to survive a recession. Here are 5 tips by MyMoneyCoach that will help you during these times.

𝟭.) 𝗘𝘀𝘁𝗮𝗯𝗹𝗶𝘀𝗵 𝗮 𝗕𝘂𝗱𝗴𝗲𝘁 𝗮𝗻𝗱 𝗣𝗮𝘆 𝗗𝗼𝘄𝗻 𝗬𝗼𝘂𝗿 𝗗𝗲𝗯𝘁𝘀

Carrying a debt burden is exactly that: a burden. And, during a recession when jobs are scarce and money is tight, those high debt payments will add only more stress to an already stressful situation. So it’s time to take stock of your financial situation and all your payment obligations and to make a plan to pay down your debts.

𝟮.) 𝗦𝗮𝘃𝗲 𝗮𝗻 𝗘𝗺𝗲𝗿𝗴𝗲𝗻𝗰𝘆 𝗙𝘂𝗻𝗱

If it’s possible, try to save about 3 to 6 months’ worth of your wages, so when the economy is down and money is tight, you won’t have to turn to credit. Using credit as a safety net is a mistake that often haunts people for years after the fact.

Most don’t foresee the reality that they will need a larger income than they currently have to both repay the money (plus interest) that they borrowed during the rough patch.

𝟯.) 𝗗𝗼𝘄𝗻𝘀𝗶𝘇𝗲 𝘁𝗼 𝗮 𝗠𝗼𝗿𝗲 𝗙𝗿𝘂𝗴𝗮𝗹 𝗟𝗶𝗳𝗲𝘀𝘁𝘆𝗹𝗲

Downsizing and learning how to live frugally can be a great strategy, because if you can learn to make do with less, you’ll increase your savings and you won’t find yourself struggling to adapt to a new lifestyle when a recession hits.

Living frugally isn’t as difficult as it sounds, and contrary to popular opinion, a frugal lifestyle isn’t about pinching pennies and depriving yourself of things that bring you joy. Rather, it’s about making conscious spending choices that reduces expenses, with minimal impact on your lifestyle.

𝟰.) 𝗗𝗶𝘃𝗲𝗿𝘀𝗶𝗳𝘆 𝗬𝗼𝘂𝗿 𝗜𝗻𝗰𝗼𝗺𝗲

Diversifying your income doesn’t necessarily entail getting a second job – in fact if your spouse is working in a different industry than you, you have some income diversity right there.

However, if you’d like to stretch your wings and bring in some more income you can look into many different options such as renting out a room in your home, renting out a space in your garage, or going so far as to buy a revenue property and rent it out.

𝟱.) 𝗗𝗶𝘃𝗲𝗿𝘀𝗶𝗳𝘆 𝗬𝗼𝘂𝗿 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁𝘀

When it comes to diversification, you can park your money in a number of different investment vehicles. Real estate – whether it’s buying a home, a condo, or even land—is a common investment that generally appreciates with time. Investing in stocks – especially the stock market index – is a good way to help your portfolio grow, while bonds have often been a good way of bring in income.

You can also consider international investments, as diversifying into other countries can also help to reduce your vulnerability to an economic downturn.