There is some pretty good evidence that a another recession is looming.  It may or may not happen, but the prudent person will examine their finances and prepare for it anyway.

You might ask, “What can I possibly do?”

This is the voice of the helpless.  These are the people that will be standing in the unemployment line wondering what hit them and how they are going to pay next month’s mortgage payment.  Don’t be one of them!

5 Things You Can Do to Survive the Next Recession

Smart people do smart things especially when survival is at stake.  A double dip recession could be a major challenge to your financial well-being.  Therefore, it is a good idea to have a plan for protecting yourself from harm.

Here are five ways that you can survive a double dip recession:

1.  Plan for the Worst

Would you be able to meet your obligations if you lost your primary income or suffered a significant reduction in income for 3 to 6 months?  In tough economic times, this is very common.  Just take a look at My First Job Ended in Unemployment to hear about how Amanda found herself out of work for three months.  If a double dip recession really occurs, then I’d highly suggest that you have a plan for unemployment even if you think your company and your job is rock solid.  A lack of planning could leave you in dire straits.

2.  Simplify Your Lifestyle

You need to get your life in order.  The simpler and more organized your life is the easier it is going to be to survive a double dip recession.  Last year’s economy made this point very clear and we saw a lot of people take steps in this direction.  However, as talk of a recovery started, I think a lot of us drifted back toward our old ways.  It is once again time to get frugal and organized.  These two really do go hand in hand and serve you well in a recession.

3.  Learn to Say No

The key to effective budgeting is knowing when to say yes and when to say no.  A double dip recession is a time to say no to a lot of things.  For example, you need to say no to frivolous spending so you can say yes to paying off debt and creating an emergency fund.  Setting appropriate priorities and having the discipline to live by them is extremely important to surviving any economic downturn.

4.  Question the Old Way

With a recession looming, continuing to spend and act in the same way you did when money was flowing freely is insane.  You have to start questioning old ways to find new ways to survive.  For example, if you need to borrow money to go to college, then you might want to ask yourself, Is College Still Worth the Debt?  An education is paramount, but there are certainly other ways to pay for it besides student loans.  Don’t keep doing things the way it has always been done without thinking it through or you might find yourself in a real mess.

5.  Be Creative

Tough times call for tough measures.  I really liked the story I read about how one person paid for graduate school by renting out rooms.  You might not need to pay for school, but maybe you do need to pay next month’s mortgage payment.  Don’t let your house fall to foreclosure.  Get creative and you can survive.  Rent out a room, deliver pizzas in the evening or have a huge garage sale to generate a little extra income.  These things can mean the difference between surviving and dying in a tough recession.

Prepare for the Recession and You Will Survive

Again, I don’t know if a double dip recession will happen or not, but I’m not waiting to find out.  I’ve paid off my debt and I have an emergency fund of 3 to 6 months of expenses set aside just in case.  Are you prepared?  Do you have a plan or are you just hoping for the best?  I’d rather not leave my financial survival in the hands of someone else.  Therefore, I’m taking positive, proactive steps to protect myself and my family from any negative consequences of another recession.  Won’t you join me?

Photo by zieak

Layoffs, bankruptcies and business closings top the headlines.

It’s not just small business that’s looking for ways to survive either.

Big name companies like GM, Ford, CitiBank, Wells Fargo and Chrysler have been in the fight of their lives.

Others like Starbucks, Office Depot and Sharper Image have closed numerous retail locations.  While some, like Circuit City, have shut the doors on all their stores for good.

The warning signs are everywhere.  It is time to take definitive action.  But, what is there to do?  In what ways can you help your small business survive this economic recession?

Diagnosing the business issues and developing a plan to survive

I have some friends and family members that own small businesses.  They tell me things are very slow.  In fact, one family member that has worked for himself for over 15 years recently had to take a job to make ends meet.

I’ve been a business owner too and I know how hard it can be.  This economic recession has to make things just that much harder.

This week, I ran across some excellent information that I think might help.

Let me share with you 3 ways a small business owner can help their company survive.

1.  Try stuff to make sure your business is NOT invisible

As a small company, you do not have the advertising budget the big guys have.  In good times, you get enough business to survive and maybe even to do pretty well without having to advertise.

However, when the economy slows down, you have to work a little harder to make sure people notice you.  It is very easy for a small business to become invisible and go unnoticed especially during an economic recession.

I absolutely love the example that Havi wrote about in It’s not the economy.  Read this story!

Here’s a little preview!  Havi walked by a store every single day for a year, but never noticed it until she saw the enormous “going out of business” sign.  The sign got her attention.  She went in and loved the store.  Too bad it is closing.

Now I’m not telling you to go by a bigger sign, but do something to get noticed.  Do more than you ever have before!

Picture yourself as a Who in Whoville like in Horton hears a Who.  Disaster is imminent and your only hope is to somehow communicate with the elephant out there.  How are you going to reach him?  He is your only hope!

2.   Try things that you’ve never tried before (think outside the box)

I’ve said this before, but I’ll say it again.  Doing the same thing over and over again while expecting different results is crazy!

If what you’ve always done to promote your business is not working anymore, then it is time to try something new!

I know this is difficult and scary, but so is riding the ship to the bottom.

You can no longer wait for customers to come to you.  You have to go find them and use creative means to get them to familiarize themselves with what you offer.

Find sources of inspiration!  Get on the Internet and look for what others are doing that works.  Reach out  online and make some connections.

I saw an interesting idea just this week.  Pamela wrote about it in Take back the economy.  During March 9-13, she along with John Jantsch of Duct Tape Marketing are participating in an online small business stimulus program.  Read Pamela’s article for more info!

3.  Stay focused on your sweet spot (you know what it is, right?)

In his article, Blog Strategy, Job Strategy, Life Strategy, Ron describes the sweet spot as that special place where your individual strengths and passion are perfectly aligned with your customer’s needs.

The sweet spot is also a place where your competition doesn’t quite have it together.  It is your niche.  It is your point of greatest opportunity!

You need to be intimately familiar with your sweet spot and you need to have a single-minded focus on staying right in the middle of it.

Now is not the time to get distracted pursuing good things at the expense of what you do best.  Stay centered and you’ll have a better chance of not just surviving, but thriving during this time when others are withering away!

The recession can help you or hurt you.  You decide!

This economic recession may be just the jumpstart you need to really get concentrated and focused on growing your business.  It may even help to knockout some of your competition!

If you make the right choices and do the right things, you might just come out of this smelling like a rose!  You have what it takes.  Go apply yourself and you will see the results start accumulating.

What are you doing to be sure your business survives the recession?

Photo by Ed Yourdon

“It’s a recession when your neighbor loses his job; it’s a depression when you lose yours.” 
~ Harry S. Truman

Unfortunately, we do not have a crystal ball to tell us exactly what the hard times ahead will look like.  We don’t know whether the recession will impact us a little or a lot.  However, it is likely it will have some affect on our finances. 

This is why I’m,suggesting everyone trim your budget and be prepared.  I’d rather be accused of crying wolf than find out the worse when it’s too late for people to prepare.

20 ways to trim your budget starting today!

Let’s get to budgeting and trimming the fat!  Come on.  This won’t hurt as much as you think.  Plus, if things get ugly, it will feel really good to know you took action to prepare and protect your family.

“An ounce of prevention is worth a pound of cure.” ~ Benjamin Franklin

1.  Liquidate the luxuries

Look at your monthly budget and determine where your money is going.  Chances are you have some luxuries that you are either making payments on or that cost you money in maintenance.  For me, I sold a boat, Seadoo, camping trailer and a hot tub.  Stay with me here, I promise this gets easier!

2.  Quit the gym

Yes, I understand that exercise is important, but does staying fit really require a gym membership?  It is possible to exercise at home or even outdoors.  Radical, I know, but sometimes you have to take drastic steps!

3.  Sell the Lexus!

Okay, even if it isn’t a Lexus, you might consider selling it.   What is your monthly payment on your vehicle?  What percentage of your monthly income goes toward making this payment?  What?  You are making more than one car payment!  Oh my gosh.  Sell the expensive cars and pay cash for some basic, dependable transportation.

4.  Turn down the heat

There are a ton of ways to reduce your monthly heating bill.  It just takes a little forethought and proactive effort.  Utility payments are important, but they don’t have to break the bank. 

5.  Cut some coupons

Couponing is a great way to save some money.  Every little bit helps.  There are even some easy ways to take the pain out of using coupons.  Remember, coupons aren’t just for groceries.  There are great coupons available to save on a wide-array of purchases.

6.  Turn off your home phone

We are all so mobile these days.  It seems almost every family member has a cell phone.  If this is the case at your house, then you might consider dumping your home phone.  This can save $50 to $100 per month!

7.  Reduce spending on the grocery bill

Groceries often take a big bite out of our budget.  It might be time to cut back on the grocery bill.  Believe it or not, you can still eat well while saving a few dollars along the way.

8.  Buy clothing at secondhand stores

I know that this one is going to be hard for some of you to do, but clothes are one item that can be purchased very cheaply when they are slightly used.  You can get name brand clothing for a fraction of mall prices at consignment stores.

9.  Grow some of your food

I understand that most of us are city dwellers nowadays.  However, it is possible to plant a small garden in your backyard.  Fresh fruits and vegetables are yummy and very healthy.

10.  Check books out from the library

I love the library.  I think it is one of the greatest institutions in America.  The library can also save you a lot of money if you read frequently.  Stop buying and just borrow!

11.  Use hand-me-downs

Parents are notorious for overspending on their newborns.  I’m a big believer in using hand-me-downs.  If this is your first child, then ask around your family.  It is likely that someone else has just what you need.

12.  Slash the cable TV bill

Do you really need all those channels?  Take a look at what you are spending every month to watch television.  You will probably be surprised and appalled.

13.  Stop going to so many restaurants

Eating out has got to be a big chunk of where a lot of our money goes.  I am amazed at how packed the parking lots are at many restaurants in the middle of the week.  It is time to make some frugal meals at home.

14.  Refinance your mortgage

Check the interest rate on your mortgage and determine if now is a good time to refinance.  We refinanced our home a few years back and shaved quite a bit off the monthly payment.

15.  Pay off your debt

It is awesome being debt-free during hard times.  It relieves so much of the pressure.  In fact, you can even take advantage of the situation by paying cash for all the bargains being offered both at retail stores and in the stock market.

16.  Get a new insurance quote

Visit an independent insurance agent and get competitive quotes on your homeowner and auto insurance.  You might be surprised how much you can save this way.

17.  Take a sack lunch

Again, eating out at restaurants is expensive.  Packing a sack lunch at least a couple of days a week can save you quite a bit over a month or year.

18.  Examine your vices

Do you have an expensive habit?  It might be smoking or could be Starbucks.  It varies from person-to-person.  These things usually cost $3 to $4 a pop, but they add up fast.  Now might be a good time to quit.

19.  Buy frugal gifts

I know that when you are giving a gift that you want to do something nice.  However, there are ways to give nice gifts and be frugal at the same time.  Explore the options!

20.  Shop hard for a good deal on your next vacation

I love to travel, but why pay more than you have to?  The Internet offers a ton of great resources that will help you get the best deal possible on your next trip.

Survive hard times with a finely tuned budget

I think it is time to get lean and mean with our budgets.  If you follow this guide, you should be able to reduce your monthly spending considerably.  This will give you the best chance to survive any hard times ahead with the least amount of suffering.

What other ways have you trimmed your budget?

Photo by russelljsmith

The recession and bailouts have dominated the airwaves and blogosphere recently. Retailers seem to be flipping out, the automakers are whining so loud it is deafening, and the media is having a field day with it all.

Everyone seems concerned about where we are headed financially.  However, I think this could all have some positive effects on our Christmas experience.  In fact, I’m looking forward to the best Christmas ever.

Why I think a crappy economy will benefit Christmas

There are a number of ways that I think a tighter economy will make for the best Christmas ever.  Here are some of my thoughts along this line.

1.  It will force us to simplify

You always hear people wanting to simplify their Christmas, but they never seem to do anything about it.  Well, the economy might be just the catalyst some people need to push them in the right direction.

With less disposable income, hopefully we will cut back on all the gifts, activities and craziness that seem to consume the holiday.  What better excuse is there to simplify than, “We don’t have the money”?

2.  In a crisis, we seem to pull together

When the going gets tough, we tend to stick together just a little closer.  Isn’t this what the holidays are really all about?  Family, friends and loved ones are what make Christmas meaningful.

Maybe the poor economy will reduce the running around and hectic pace we all tend to fall victim to during the holiday season.  I don’t know if it is just too soon or what, but it already seems that things are a little slower this year.

At my house, we have spent time sitting together on the couch watching Christmas specials on television, drinking eggnog while reading the true Christmas story, and baking cookies to give to neighbors and co-workers.

I’ve enjoyed this togetherness immensely!  However, if the financial picture was better, I’m not sure we would be spending our time the same way.

3.  Maybe it will reduce some of the consumerism

Will the recession and tighter budgets lead people to spend less?  I sure hope so!  Otherwise, the post-Christmas blues are probably going to be a lot worse this year.

I’d hate to think that spending on Christmas might lead some folks into bankruptcy or foreclosure.  Hopefully, this economy will take some of the rabid consumerism and overspending out of the holiday.

For many of us, our grandparents lived through the Great Depression.  As a result, they learned to be fiscally conservative.  They know what hard times are all about.  However, not all of this got passed down from one generation to the next.

Today, many feel that younger generations have a sense of entitlement.  They are the “microwave” generation.  They aren’t accustomed to having to wait on anything.  They’ve grown up during prosperous times where lifestyles have become overinflated.

A time of correction might help to reel in our promiscuous spending and help us to refocus on what really matters.

Simplification, togetherness and frugality = best Christmas ever!

I really think this Christmas might be one of the best ever.  That is if we simplify, spend more time with loved ones and cut back on spending.  Think about it.  Isn’t this what we all really want anyway?  Why not take the opportunity this year to make the changes that will make your Christmas one of the best ever?

This post is part of a series offered by The Life Skills Network on simplifying your Christmas.  Please check out the other articles in this series:

• Simplify Your Holidays in 3 Easy Steps @ My Dollar Plan
• Simply Perfect: Holiday Tips from On Simplicity Readers @ On Simplicity
• 3 Ways to Simplify Your Christmas @ The Wisdom Journal
• The Top of Your Holiday To-Do List: Breathe. @ Simple Mom

Photo by krisdecurtis