This is a guest post written by Suzanne Cramer, a certified credit counselor and a Social Media Specialist for Care One Debt Relief Services. Suzanne writes for Divorce, Debt and Finances andA Straight Talk on Debt. Follow Suzanne on Twitter @ADivorcedMom and @AskCareOne where she stares her insights on divorce and managing your finances.
Recent economic forecasts show signs of improvement but with the state of the economy over the past few years, preparedness is the best way to ensure you and your family is safe from economic harm.
Everyday we hear about layoffs corporate downsizing, foreclosures, and bankruptcies filed by those who just couldn’t keep up.
So while the economy is said to be on the rebound what steps can you take to safeguard your financial future and survive the economic roller coaster?
Pay off debt
Paying off debt is the first step to financial freedom regardless of where the economy is headed. So your first priority should be to pay off any unsecured debt such as credit cards as quickly as possible. While easier said than done there are several options when it comes to tackling your debt and putting yourself ahead of the game.
Emergency savings
We hear about the importance of having an emergency fund all the time. Why is it so important? Life is unexpected and just as unpredictable as our economy. Having an emergency fund can keep you afloat during tough times and see you through a lay off or medical emergency. If you don’t have an emergency fund yet, open a new savings account, and start making regular deposits. Even if you can only afford to save small amounts, your money will add up over time.
Become indispensable & stay up to date
As unemployment rates are still unstable, you’ll want to do everything you can to ensure your income. If you’re currently employed but uncertain about the future, try to make yourself indispensable at work by increasing your visibility, taking on new responsibilities, and continually honing your skills with job training or advanced education.
If you’re unemployed, update your résumé, re-connect with your contacts, and expand your network
Give it up
Many of us are living a lifestyle we can’t afford. If this is you, the easiest way to ready yourself is to spend less than you earn. So if weekly manicures, daily lattes, and expensive cell service don’t fit into your budget-make the cuts. Giving up luxuries improves your bottom line and will make the difference if things don’t go as planned.
Use good shopping sense
Bargain hunt, compare prices, and pass on items you don’t really need. To determine whether a potential purchase is a necessity, ask yourself if you can truly afford the item, and do a cost-benefit analysis. You may find that some goods are just too valuable to pass up, while others are a waste of money.
Keep Everything in Perspective
According to experts, many Americans are experiencing acute stress, anxiety, and sleeplessness as the result of job losses, foreclosures, and other economic uncertainties. And these symptoms not only take emotional toll; they can increase your risk for serious physical conditions, such as obesity, smoking, alcohol abuse, and heart disease. For this reason, it’s important to keep a positive attitude, maintain a healthy lifestyle, and remember this to shall pass.
Although you can’t change the economy, you can help yourself by being prepared.
To find out if you’re truly prepared, take this quiz, “Are Your Finances Recession-Proof?” And see how you stack up!
