Ways to be Financially Stable for the Recession

A family member of mine lost her job from a lay-off today. I am going to teach her how to make money from home. It’s a sad day in American history when someone working at a company for 26 years just gets laid-off without warning. Not even a day notice to prepare for the decision. It was finish your day if you want, but we can’t use you here anymore. Might as well say, “don’t let the door hit you on the way out”. Where I come from, you give seniority some respect. At least throw them a party after 26 years, right?

Well, the recession in America, is definitely here without question. Our money is worth didly-squat to other major countries around the world right now. The exchange rate if you leave the country is terrible now. I remember going to Canada or other parts of the world and my money be worth around double or more. Things have changed drastically in the past 5 years for the worse. Seems like the only way to hold a job these days; is to work for a gas or oil company.

* Cut down on your extravagant lifestyle. Stop spending money on things you want. Start spending money on things you absolutely need. Save the rest.I know this sounds easy, but it isn’t. That means, everything from the extra pay channels on cable, to that morning coffee you buy. Start watching less T.V. and make your own coffee in the morning. Bag a lunch. That alone, could save you a few hundred dollars every month. Two dollars for that coffee in the morning times 30 days in a month. That is $60.00 for coffee you could save every month. Think about all the things you don’t’ need and can cut out. Make some adjustments to your daily life. Times are getting tough.

* Don’t use those credit cards! Stop wasting your money. The interest rates on almost everyone’s credit cards are ridiculous. Why pay interest on your own money? I never got it. I had credit cards in the past. I find no need for them anymore. For years I have stayed away from credit cards. I use my bank debit/card. It is a gold visa card and the money comes right from my band account. I can use it like a credit card all around the world. I never pay interest. If I don’t have the money, I can’t spend it. The temptation is so much less if it’s your own money and not borrowed money from the credit card companies. That’s all a credit card company is to me; A high priced loan shark.

Some people pay off the same credit card debt their whole lives. The credit card hole is awful. Get out as soon as you can. If you do have credit cards, stop using them. Pay them off and KEEP THEM. It’s important not to shut down your credit card account down if you have had it for a long time. That long term credit card is good for your credit score. Don’t use it at all and keep it. If you pay it off and get rid of it; the long term plus towards your credit score will be erased, in turn lowering your credit scores. I speak from experience.

It’s a whole other story if you know you are spending your money and not the credit card company’s money. Your spending habits will immediately change for the better, I guarantee it.

* Take on another job or money maker. If you work a regular job, take on a part time job. Even if you sell an item or two a night on ebay. Start something on the side to help out. Get a laid back part time job somewhere. Think about things you are good at doing. I bet you could make some money with your talents if you really think. Give it a try. The least that could happen is; you get an extra hobby that makes money.

* Invest some money in different places if you can. I’m not saying to gamble your money away. There are tons of ways you could safely invest small amounts of money. IRA’s are a great way to save some money and get back a lot. I recommend a Roth IRA if you go with an IRA. Roth IRA’s are tax free when you take your money out. Regular IRA’s tax you on money you withdraw. Start putting extra money in to your 401k plan. Or start a 401k plan if you don’t have one already. I am sure your bank, could give you some really good Credit of Deposit rates. You can put a small amount of money into these types of programs. You don’t need to be a millionaire. I don’t recommend getting into the stock market, unless you know all about it already.

Save all that money you don’t spend. In some cases I have saved people thousands of dollars every month by these same tips. You never know when you will need this money. Refer to this money as your back-up/emergency fund. Don’t spend it on anything except necessities. Bills, loans, rent/mortgage, car funds etc. And only use the fund when you can’t pay those things normally. Like a real emergency. Don’t look at that money as extra. Put it to the side and ignore. Keep saving it and it will grow. Someday you may need it for something major. If you own a house and make $2000.00 a month; a good cushion would be $24,000.00 on top of that. Expensive problems seem to happen at the worst times.

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