Chances are you’ll experience living through a recession at least once in your lifetime. And if you have experienced one, you’ll know the toll it can take on your finances, which is why you should do all you can to recession-proof your budget. Compass weighs in.
Make budgeting a priority
If you want to be better prepared for stormy times, it’s better to start prioritizing budgeting now rather than later. Here, we’re referring to drawing up a strict budget and adhering to the perimeters you’ve set for yourself at all costs.
Spreadsheet software like Excel can be quite useful for writing and adjusting your budget. If you have a PDF of information to reference, you can even embed your PDF into the Excel file. This is a helpful way to keep from having to switch between multiple windows while working on the file.
Find other ways to boost your funds
Most people enjoy having a side gig because it allows them to breathe easier regarding their finances. Moreover, having more than one revenue stream allows people to live a life of financial freedom, which is all the more reason to have one to boost your existing funds.
If you decide to pursue a higher paying job, be sure to give your resume and CV an update. To help, give this a try—it’s a free online CV tool. You can quickly and easily create a new CV from a template. After entering your information, you can even customize the appearance of your CV to reflect your personality. Once complete, simply download it and begin applying.
Examine and re-examine your budget to see where you can save money
When it comes to saving money, one often has to look at where one can cut down on expenses. Suppose you want to be more frugal regarding your insurance expenses. For example, perhaps you’ve been hearing a lot about the benefits of a home warranty, but you’re not yet convinced of whether you should go out and get one or not. Firstly, you’ll have to look into whether you actually need one or not by taking a look at your inspection report to see if anything problematic regarding your home’s appliances and systems stands out to you. Also, check if a home warranty exists on your property and what this covers already; this will help you decide if you want to be spared the expense of costly repairs.
Don’t spend on impulse
Another way you can reduce unnecessary spending is to avoid impulse buys. Spending without much thought about whether you will actually need it is a surefire way to regret a purchase afterwards.
For example, perhaps your home requires a few odds and ends to help make life more pleasant. Be sure to read up on reviews and look at the ratings concerning the product you want to purchase, as you’ll want to be absolutely certain you’re getting your money’s worth and that the items you’re buying work as well as they claim to.
Don’t forget about an emergency savings
Emergency savings could be a real lifesaver in times of crisis because it’ll save you from dipping into your actual savings and/or credit card if an emergency arises. Call it an extra buffer, if you will, to safeguard your income for when hard times knock on your door.
Don’t let your worries get the best of you
As much as you’ll want to recession-proof your budget in times of economic hardship, so will you have to recession-proof your mind by seeking help if necessary to prevent your worries from getting the best of you.
Certainly, recessions can be a real inconvenience. But it doesn’t have to ruin your day if you’ve been smart about spending and saving along the way.
Thank you to guest blogger Jason for sharing this helpful and easy to follow information!
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