9 Ways to Recession-Proof Your Life

“It’s a recession when your neighbor loses his job; it’s a depression when you lose your own.” — Harry S. Truman

Experts are debating whether the US and inevitably the world economy is headed for a recession.

Currently opinions among economists are split at about 50-50 to whether the US will experience recession in 2008. Other economists say that fear of a recession could help to cause one. And still others claim we are already in a recession.
If the economy is heading for recession, what should you do? Should we just plan on standing in soup lines and getting government cheese? Or is there a better way?

Here are 9 ways to recession proof your life you can start today…

Recession proof you:

1. Pay off credit - Probably one of the most powerful recession proofing moves you can make is to pay off all your debt. Paying off your credit means you won’t be a slave to your bills. It gives you the power of your paycheck and interest when you place money into investments.

• Sell off to pay off
• Pay off your smallest credit first
• Increase credit card payments without charging more

2. Delay gratification - Long gone are the days of allowing 4 to 6 weeks for delivery.

Now almost every business is designed to provide immediate gratification. You want to rent a movie? Fire up iTunes and watch it – now. Want some new software? Download it – now. Want a new gadget or gizmo? Order it today get it tomorrow via free overnight delivery.

What this “fast service” sets us up for is a feeling of need for immediate gratification. However, immediate gratification also hits your wallet very hard.

3. Develop long-term savings goals - How much money do you want to have when you retire? Starting earlier on that savings plan than later always works out better than starting later.

Recession proof your Work

1. Develop your niche - As you work at your career, moving toward a specialization is what brings in the bigger bucks. What is your specialty? What do people need from you the most? That is likely your specialty or niche that if honed will

2. Learn more - I sometimes hear stories of employees turning down free training. An employer offers to send you off to skills development training and you say no? Why would someone do that? Training offers opportunities to grow. It is also a good way to get away from the daily grind and give your mind some new ideas. But long term, it means more money in your pocket because you’ll develop new skills.

3. Take on the hard jobs - What are some of the jobs you can do well, but other people hate? For me, it’s marketing analytics (statistics). I love doing it, but others either don’t have the patience or simply hate the constant anylizing… By becoming the analytics guy, I become recession proof because if they get rid of me, then someone has to step up and do it.

What “hard job” do you actually like that you can volunteer to do? By doing it, you become the hero, the person they have to keep around.

Recession proof your family

1. Get your spouse/partner to sign on - Family men and women, it’s critical to get your “better half” to sign on. If you are saving but your partner is spending, then you are countering each other’s efforts. Have a sitdown where you both can express your thoughts and feelings about money. Do you want to constantly be running from creditors? Or do you want a sense of freedom that financial independence provides? Talk it out and reach an agreement.

2. Teach your children to delay gratification - Kids want everything. It’s your job as a parent, or older sibling, to help teach them their wants will always exceed the money. This is a challenge when they face the pressure of other kids and their toys. I think the best way to do this is I teach my kids to make things. Whether it’s a woodcarving, origami, dream catchers or planting a terrarium, by making things, patience is a natural by product. Patience is also a key to to delaying gratification, obviously. And when they learn to build, they learn that they don’t necessarily have to buy something when they can make something of equal interest.

3. Involve your children in family savings goals - Help your kids learn not to spend every dime. When they get a gift from Aunt Rose or earn some money for vaccuming the floor, take a portion and put it into savings.

For more articles on living your financial dreams subscribe to my RSS feed.