Learn how to survive tough times with our recession proof tips.

Nothing in this life lasts forever and tough times will not last either! Once you understand these simple concepts, it will be a lot easier to not get discouraged when hard times hit. Although discouragements do effect all of us at times, there are simple steps you can take to counter these feelings and attitudes.

Having adult children ourselves, we know how hard it can be to get these points across. For a while it seemed like we were getting a call every other week because a job didn’t work out or some other “major” calamity had struck.

With a little planning, some forethought and by keeping your impulsive buying habits in check you can be back on a sound financial track in no time.

Check out the following recession proof tips:

1 – Assess Your Resources

Get yourself a notebook, a Clever Fox budget planner (we gift our kids one every year) or start a spreadsheet and keep a written record of all of your assess.

Figure out exactly how much you earn each month. You need to know your ‘Net’ income which is your wage minus taxes, insurance, etc.  Do you have cash or money in a savings/checking account?  Next add up what you own (approximate monetary value). Do you have insurance and/or a 401K? Find out and write down the resale value or your car, designer clothes you could sell, gear you don’t use any longer and so on. Then write down what you owe and to whom.

Don’t forget to include your daily, weekly and monthly living expenses like groceries, rent/mortgage, gas, ongoing subscriptions and going out money. Once you have it all written down it will only take a few minutes every months to upkeep.

If you loose your job tomorrow will you have enough cash to bridge the gap until either unemployment benefits kick in or you find a new one? 

2 – Build A Nest Egg

No matter where you live or work, in the US or across the pond, the future is uncertain. You can never know when you and your income stream might part company. You need to start saving right now to accumulate cash! And guess what, it’s easier than you might think. Even putting away as little as $20 a week will add up over time.

But don’t stop saving until you have squirreled away an amount that will pay your bills for a minimum of 3 months (refer to your budget planner above). Don’t borrow from your nest egg or play around with it. This is a sacred stash of money because it could mean the difference between survival and disaster or homelessness in tough times.

3 – Put A Lid On Stress

Stress is the most hazardous thing you can do to your health! It will make even otherwise tolerable events of life unbearable. Being under stress will make you more prone to hasty and stupid financial decisions. It can horribly skew your judgement!

Try to get rid of as much stress from your life as possible.

Releasing stress will help you clear your mind so you can manage your finances calmly and in an intelligent way. Try breathing exercises, yoga, walking in the woods, listening to music, playing with your kids and/or pets. Physical touch can do a lot to relieve stress. Hugging a loved one can be especially beneficial.

Whatever it takes to bring down your stress levels. Remember, for every one thing that might go wrong, there are a multitude of blessings.

4 – Live Below Your Means

This is a hard one for the younger generations. But it’s really simple. Spend less money than you earn. That’s all there is to it. I was raised with one financial rule:

If you can’t pay cash, you don’t need it! 

My brother just waited and saved for almost ten years so he could purchase the Harley Davidson motorcycle of his dreams. IN CASH! In American society this is almost unheard of.

No, you don’t have to wait years to buy what you want. A good rule of thumb is to adjust your lifestyle so it fits within 80% of your income. Start to cut a little from every area of your spending , refer to your budget planner. Take it one step at a time, you will be amazed how quickly you will adjust, and your financial picture will change for the better.

5 – Avoid Scams

When the going gets tough, it will get tough for everyone. Brace yourself for the onslaught of scams, they are the natural outgrowth of a stunted economy. You will receive countless “opportunities” to get rich quick, pre-approved credit card offers, no money down loans and ‘Buy Now- Pay Later’ offers.

Don’t fall for anything that promises instant wealth with little work. Stay away from new credit since it will only lead to new debt.

6 – Establish A Side Hustle

Develop your greatest asset – YOUR ATTITUDE – and the way you respond to life. If you can’t make your budget work on one income, try to establish multiple income streams. That doesn’t mean to brush off on your main job.  Instead of sitting in front of your computer playing games at night or going out to eat with friends, find something you enjoy and are good at. Then find ways to turn it into an income. A side hustle doesn’t have to be a huge cash cow. 

You could work a few hours a week at the store you buy your games from or help serve tables at your favorite restaurant. Not only will you make money, but you will save money and possibly get discounts as well.

Are your finances recession proof? Please leave us a comment and share the article with anyone you might think needs a little financial advice in these turbulent days.