3 Tips to Fight Off the Recession

3 Tips to Fight Off the Recession

With uncertainty in the economy, many are treading lightly when it comes to their finances. Is the economy really getting better? Are housing prices going to drop further? Will I be able to find a job? These are just a few concerns on American’s minds as we slowly retrieve.

With such financial uncertainty, will you be financially prepared if things go bad? A layoff, death in the family, medical emergency, or other unexpected event could put you in financial straits. Having the funds to pay for your mortgage or rent, utilities and other basic expenses should be mandatory.

A survey done by the Consumer Federation of America found that six out of every 10 people in America do not have money set aside for emergency expenses. Out of the people who did have money saved, only one-third of those had less than $2,000 put away.

Here are a few good ideas to make sure you have financial security and stability if you run into trouble.

Cut Spending

Everyone is cutting back due to the recession, there’s no shame in it. We need to live within our method and get back to what is most important. Set aside the money you save into its own separate fund. When tough times roll around, you’ll have permanent financial security as you get back on your feet. Remember, if you don’t need it, don’t buy it.

Have a Rainy Day Fund

Plan on having three to six months worth of savings set aside for unexpected financial emergencies. This can be done by calculating a set amount of your paycheck to go into a separate fund. Unfortunately, this can be difficult for people whose funds are already tight and can’t provide to set aside much from paycheck to paycheck. Everyone’s situation is different, but planning ahead will save you a lot of stress and trouble when things get tough.

Refinance Your Mortgage

If your current monthly payment and mortgage rate are too high, refinancing may be your best option. Mortgage rates are at historic lows, so the chance to refinance into a lower monthly payment is one that should not be passed up. While many are understandably skeptical on making any major financial decisions, refinancing into the right mortgage could save you thousands over the life of your loan.

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