Make Money – Save Money – Reduce Expenses – Live Better, Part III
In the first post and second postsof this 3 part series on making money
, saving money, reducing expenses, and living better we discussed how you might increase your income at your regular job and outside of your workplace. Now we will discuss how you can survive and thrive in this recession or any other.
Be Recession Proof on a Modest Income
Three Recession Resistant Industries (not sexy but necessary)
Healthcare
Government
Education
Modest Income Recession Plan
Pay your bills faithfully.
Prioritize debt.
Reorganize debt. For example, go from an adjustable rate mortgage to 15 or 20 year fixed.
Negotiate with your creditors. Ask for a lower interest rate or if you are out of work ask them to extend your payments. NEVER ignore their phone calls or demands for payment. They are not going to go away. They will be a lot more willing to work with you if you show responsibility.
Learn to barter. Wikipedia describes it thus:Barter is a type of trade in which goods or services are directly exchanged for other goods and/or services, without the use of money. It can be bilateral or multilateral, and usually exists parallel to monetary systems in most developed countries, though to a very limited extent. Barter usually replaces money as the method of exchange in times of monetary crisis, when the currency is unstable and devalued by hyperinflation.
Modify your spending behavior or go on a budget. I personally don't like being on a budget so I modify my behavior by non impulse buying, making cash purchases, buying only on a real sale at real discounts, use vacation packages and points programs, enjoy dining clubs, eat out once or twice a week instead of 4 or 5 times at modest restaurants, etc. However, for some people a written and faithfully followed budget is the way to go. Do whatever feels best to you, but be very aware of your spending habits as you go.
Look to make extra income. Please see my
previous posts on this subject.
Get rid of surplus non-essentials and cut unnecessary expenses. Ebay is a great way to clean out your closets and gain some extra cash.
Get an auto savings account. The money should go directly from your pay check to your savings. Tip # 1 leave this money alone!
Use employer tax deferred plans and max them out if possible.
Self invest. Educate yourself by reading and participating in activities or associations that will build knowledge base or skills. Three of my favorites are
Toastmasters, online education, and key business associations related to your industry.
Pursue your passion through work or on a part time basis.
Stay positive through prayer, meditation, feeding your mind in a positive uplifting way.
One last thought on cutting expenses. If you feel you can't cut expenses because everything you have you "need" or is "critical" to your quality of life here is just one of the cuts I made. I cut my cable bill in half by keeping my cable based Internet package and getting the basic viewing package instead of the premium. Guess what? I don't miss it. Instead I'm reading more, writing more, and spending better quality time with my family. Oh by the way I can afford the premium package but whey through money away.
Having food, clothing, and shelter are critical. Premium cableand other frivolous items aren't.
Have goals whether you are single or married. If you are married be diligent about having joint goals and executing on them. Be sure to effectively communicate with your mate what your plans and goals are and share them.
THJ & Associates, LLC 2008
Make Money Save Money Reduce Expenses Live Better, Part III
By: Theodore Henderson
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