Regardless of how the economic landscape progresses in the coming months, there are certain steps consumers can take to safeguard their own financial well-being. Nonprofit firm InCharge Debt Solutions advises following these five steps:
1. Reduce your debt – Paying for debt instead of life's necessities (food, shelter, utilities) is counterproductive, particularly during a recession. Take steps to pay down your debt as much as possible before another downturn.
2. Create an emergency fund. Even if you only have a small amount of "extra" money every time you receive income, put as much as you can away.
3. Cut your expenses. It is amazing how many things you can save on when you really put your mind to it - cable, insurance, entertainment. There are always ways to cut back.
4. Be a better employee. Work harder, do more at work, become more visible and more valuable to your employer. Who knows, you may get a raise or a bonus!
5. Do a financial inventory – Have a certified professional evaluate your financial situation, budget, and spending habits, and develop a strategy to help you deal with whatever the economy throws at you.
Source: InCharge Debt Solutions