4 Strategies to Recession-Proof Your Life: How to Thrive During This Difficult Time
Guest post by Derek Goodman at inbizability.com
Recessions are crazy times. People are racing to stock up on consumables, the media is frenzied about inflation, and markets can end up crashing massively. This can be very concerning for the average individual and can lead to feelings of stress, worry, and panic. But don’t worry quite yet – there are some ways you can survive and thrive during these challenging times. Want to learn more? My Financial Zen shares the details below.
Manage Your Health
Taking care of your health during this time will be critical because those medical expenses can add up. Prevention is the best medicine to achieve this, and you can easily do so by working with an online doctor. This makes it easier to stick with appointments and can even be a more affordable option since you aren’t spending money on gas, parking, or lab work. To find the right doctor, look for a reputable telehealth platform that takes your insurance for relatively low copays. After you find your doctor online, be sure to take your medications, have regular checkups, and discuss any health issues as soon as something arises.
Access the Equity in Your Home
No savings left to fall back on? You may want to consider a home equity loan or line of credit. This will allow you to access your home equity without the cost of a refinance. Once you establish a line of credit or home equity loan, you’ll be able to use the money to cover other critical expenses. You can then use this extra balance towards an emergency fund, unexpected medical bills, or to pay off debt. Simply pay back the loan once you’ve overcome your financial setbacks, and you’ll be good to go.
Invest in a Home Warranty
According to the Globe and Mail, maintaining a home is one of the highest expenses. From repairs to general touch-ups to construction and renovation plans, it’s best to always be prepared for costly repairs to your home. You may want a home warranty, especially if you want coverage in case home systems or appliances break down. Before deciding whether this is the way for you, check the home inspection report for any red flags or pre-existing warranties on devices and their coverage.
Live Within Your Means
NPR reports that 65% of Americans don’t live within their means. When you go over your means, you will have less money for essentials like food or gas. The best way to have enough money for daily living is to manage your household budget better. Take stock of all your expenses, including mortgage payments and outstanding debt. Then, come up with a ballpark figure on how much you need to be spending on daily living and how much you’ll have leftover for saving. While prices will be relatively higher during a recession, it is still critical that you prioritize saving so that you have wiggle room for more challenging times down the line. If you can start building an emergency fund to fall back on, that will be an excellent place to start. Another strategy for a two-income household is to try living off of only one spouse’s income. You’ll be surprised at how much you manage to save up this way!
While it can be intensely confusing and daunting navigating financial crises, the best thing you can do is to stay agile and keep pivoting. Constantly work on different strategies to come out of this period better and don’t give up. Every recession has to end, so life will return to normal before you know it.
My Financial Zen offers a thoughtful approach to personal finance. Looking for financial coaching tailored to your unique needs and preferences? Click here to set up a free coaching session today!