Tuesday, November 25, 2008

How to survive the recession?

If something can go would. So expect the worst. And be prepared.

You have to realize that government interventions/stimuli - those hundreds of billions (trillions, in fact) of money support wielded by the governments of USA, China, UK, Japan etc. would take sometime to have an effect. How long before these monies have an impact? People say, maybe 18 to 24 months.

So what can you do? How can we survive this recession?

1. Keep your job. I know this is no brainer, but for some people, and for reasons we do not know - some would want to leave their current jobs. I would say keep it - unless there is a job - truly - waiting for you.

2. Get that emergency fund going. Be liquid. If you got hard assets - maybe you should think of turning some of it liquid, just in case you need an emergency cash. This is important during times of difficult access to credit, if you know what I mean.

3. Save. Spend less that what you earn. Live within your means. Do I need to explain more? hehehe.

4. Re- structure. Investigate your options. Search for alternatives, such as cheap insurance quotes, health care plans, etc. Make you own coffee or tea. Buy better food, and reduce eating out. Get an alternative to your cable connection, service provider etc. Just re-structure and save. If you are doing some online stock trading, keep your cool, ask a professional opinion somewhere else.

5. Apply for unemployment benefits, ASAP. If you are one of those who got "pink slip".

6. Have other sources of income. Get a second job or a blog.

7. Check you credit score - improve it if necessary.

That's all I can think for now.

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