When the tunnel looks dark and long and you’ve done all you can to cut back and trim the fat, don’t give up. Whatever you do, don’t focus too much on the gloomy news about what’s happening in society. Take courage and don’t be afraid. Surround yourself with positive people who support you and can offer good advice.
When interest rates on your mortgage go up, rents increase, and the cost of food, petrol, electricity, and phone bills rise, it can feel overwhelming. Your family budget might be stretched thin. Take a deep breath, go for a walk, or do some exercise. Remind yourself that this is not the end. This is when emotional intelligence becomes important. Look at the challenges and say, “I will not be conquered.”
Steps to Survive a Recession
- Review Your Overheads: Look for better deals on your phone plan, electricity, and insurance policies. Websites like Money Hub offer great financial tips and deals.
- Find Cheap Petrol: Identify the days and stations where petrol is cheapest.
- Manage Your Debts: Focus on paying off the highest interest rates first. This will save you money in the long run.
- Talk to Your Bank: If you think you might fall behind on mortgage payments, talk to your bank. They might let you switch to a different mortgage plan temporarily. Also, see if you can consolidate high-interest debt into your mortgage at a lower interest rate.
- Cut Back on Food Costs: Reduce spending on takeaways, coffees, and dining out. Cut back on unnecessary extras when grocery shopping. Make your own lunches and dinners to save money.
- Review Subscriptions: Do you need all those paid TV subscriptions? Check if you can switch to free alternatives.
- Exercise: Go for a walk, bike ride, or swim. Staying active is good for your health and doesn’t have to cost money.
- Keep Saving: If possible, keep saving money. Aim to have at least three months’ worth of expenses saved for emergencies. Even saving $20 a week is a step in the right direction.
- Create or Review Your Budget: Use free budget templates available on Google Forms, Dave Ramsey’s website, and Money Talks. Look for ways to save money or find new income streams.
- Rent Out a Spare Room: If you have a spare room, consider renting it out. International schools often look for family hosts, which can be a good source of extra income.
- Find a Side Job: Look for secondary jobs like mowing lawns, babysitting, or walking dogs. These can help bring in extra money.
Surviving a recession is about being smart with your money and finding ways to cut costs. It’s also about staying positive and being proactive. By following these steps, you can make it through tough financial times.
