On Surviving A Personal Financial Crisis - And Other Personal Finance Subjects Like Loans, Credit, Debt, Debt Management, And Saving Money

Many times when preparing for a recession people do not think of reducing debt as a strategy. But, if you have sufficient income and are able to save money to be used for surviving a recession and you have a good chunk left over you should really consider paying down your debt as a means of further protecting yourself from a recession.

Every bit of debt that you pay off increases your monthly cash flow. The better your monthly cash flow the better your chances are of surviving a recessions. Over the last thirty or forty years many people have used credit cards, home equity lines of credit, and other debt instruments as a means to live beyond their income capabilities. Read more »

Increased income is critical to surviving a recession. Preferably, this new found income should not come from your current job. It should come from alternate sources like a second job, contract work, new small business, or even an online business. If you are someone that has cut their expenditures to the bone but still do not make enough money to save to prepare for a recession or make the critical decisions necessary to survive a recession, then for all intent and purposes preparing for a recession, to you, means increasing your income. By the same token, if you are someone that has enough income to make those critical decisions but your job is in jeopardy then surviving a recession means increasing your income as well. Surviving financially during hard economic times like recessions means maintaining or increasing your income. You want to avoid taping into reserves like retirement accounts and your children’s college funds. Read more »