How to Survive in an Economic Down Turn

Living Within Your Means Worked for Generations Before - Why Can't We?

We have been facing an economic downturn, but don't let that scare you. There are ways to not only survive but actually thrive in such an environment. Just follow a basic rule that generations before us mastered: "Live within your Means."

It's also important to have a positive attitude and avoid giving in to fear. If you don't believe in yourself, no one else will. Here are some more tips: 

Increase Cash Flow

- Take all entitled withholdings on your W-4.

- Use company benefits that might increase cash flow, e.g. a deferred medical program.

- Increase any insurance deductibles.

- Have a garage sale; it unloads your clutter and you can bring in some cash.

Reduce Expenses

- Create a budget.

- Prepare your weekly grocery shopping keeping your budgeted food allowance in mind. Keep that discipline by using a list and sticking to it.

- Get creative by looking for ways to reduce major day to day expenses. For example; you can car pool to save on your gas expense - with clothes for your teenagers, you can have a swap clothes among their friends allowing them to have a different outfit without the cost.

- Go to garage sales and recycle; rather than consume.

- Start making your meals at home; brown bag lunches. It's easy when you make extra helpings for supper the night before and use them for your lunch the next day.

- Reduce your debt. If you don't have the discipline, then write down every charge you do on a daily basis and add it up weekly. You will visually see where you money is being wasted.

- Reduce utility bills by conserving energy.

- Reduce entertainment expenses by, for example, socializing with friends or neighbors and having monthly theme parties where everyone brings a dish related to the theme.

Job Insecurity

- If you're afraid of losing your job, then update that resume and start networking.

- Improve job skills by taking courses.

- Don't be afraid to ask how your company is surviving in this economic down turn. It could give you a heads up on what action to take.