How to survive a recession

how to survive a recession

Recessions are not nice for ordinary folk, our standards of living reduce. But we can survive and in many cases experience improvements in our lives. I recall inflation at around 25% in the seventies and we survived. In a way it has some positives, and personal debt effectively reduces in value for one. 

Prepare yourselves and your family for the downturn but also recognise the new opportunities,  it'll teach you and you family the true value of things like the food we eat (how many take outs do we fail to enjoy or throw away large amounts of?), See "do a meals list", the clothes we wear, (and footwear🤔),  short,  unesacerry journeys etc. Start walking,  go with them.

RECOMMENDATION 1

Do yourself an honest,  comprehensive and realistic budget

This will help you identify what's going out and could be reduced or even stopped. It will also help if you need to ask your credits for a breather see negotiate with creditors

See

Recommendation 2

Do a meals list. Wether your on your own, in a couple or a family I believe a meals plan is essential in budgeting for food.We have one laminated, which contains about 35 to 40 meals (ask if you want to copy) it contains the meals we both like and aims to give as both an input into the following weeks main meals (we don't bother with breakfasts or lunches as these are often cereals or snacks etc) . Obviously the seasons of the year determining RH Isis for the following week's meals winter we tend towards slow cooker meals where is summer salads and and sandwiches fare large.

Next next to your meals list you should have have your next shopping list. Obviously be made up of items to help you prepare the dishes you've chosen for the following week which reduces waste and stops people shopping on impulse, a very wasteful way to spend your money. This also involves the children in buying the right food for the dishes some of which they may have chosen the South and give them a and give them an input.

5 Negotiate with creditors.

If you're in debt you're in debt accept it and don't be afraid of negotiating with creditors. Don't bury your head in the sand I don't let you get worry you to the extent that they are affecting your mental or physical health and yes I've seen this happen many times debt should be b38 like an illness. Over the years we've all been conditioned Intu bowing down to the great god the credit score or credit score what's your credit score? "Get a better deal with high credit score" well in my opinion this is a myth what you doing back in the high credit score is making you attractive to the vultures that circle overhead is all all ink cartridges to buy that new car this year instead of next get that holiday of a lifetime now instead of next year ear live the life of your dreams but here's the rub you can't borrow your way out of debt don't ever let them my pretend you can. Don't get me wrong if you can afford to maintain a good credit score then by all means do so it's when it's become unaffordable then it becomes a major problem it couldn't smash marriages up create stress and illness which causes people to lose work or worse become addictive to something to help he's the worry and it's simply not worth it on there are things you can do about it. I sold mortgages for many years and if it's a mortgage or new tenancy  your after then that's a different ball game and I suggest you see How to get a mortgage 

If your going to negotiate with your creditors remember your aim is to reduce your monthly outgoings and hopefully freeze interest and charges. Also be aware that they'll expect you to be in control of your finances and have an up to date and realistic monthly budget.

For further information see https://www.citizensadvice.org.uk/debt-and-money/debt-solutions/debt-management-plans/debt-management-plans-explained/debt-management-plans-what-you-need-to-know/

Another excellent site which gives you a comprehensive overview of this aspect of financial planning is found here 

Debt 🐫 Camel

Recommendation 4 

Aim to build up an emergency fund, this you should start right away. It’s always good to have some cash set aside so that you’re able to keep your head above water should the unexpected present itself. In an ideal world, this pot should cover your typical outgoings for three to six months and cope with emergencies such as car and household breakdowns.