Wednesday, December 3, 2008

Recession Proof

Surprise, Surprise, Surprise, the country is in a recession. Oh and get this, the country has been in a recession since December 2007. Hmm, I wonder why they waited 12 months to finally admit the state of this economy. Are you surprised? I'm not.

Several people have asked me my thoughts on the recession. It’s simple; I have chosen to opt out. That’s right, I am opting out of the recession … as in not participating. Regardless if the country is in a bull market or a bear market, the choice is always available to most of us rather or not we experience a personal recession. The last time I was in a personal recession was during the last bull market, go figure! Consequently, I learned that it’s not wise to leave my finances up to chance, the government, an employer, or even a well-meaning financial advisor. I am the CEO and CFO of Me, Inc.; it is my responsibility to actively manage my business (even if I solicit the help of others).

A few tips to avoiding a personal recession:

1. You are the boss so take control. Organize your finances, create a monthly budget, and commit to keeping it.

2. Pay off debt, especially credit cards! Period.

3. Increase your financial knowledge and practice what you learn. The rate of return on this action item is infinite.

4. Make temporary sacrifices (for example, when gas prices were ridiculously high, I switched from Dove soap to Tone and from Charmin tissue to Scott (extra soft of course:-). These were proactive, temporary changes to help accommodate the increase in my gasoline budget.

5. If applicable and necessary, increase your income.

  • Obtain a new job or get an additional job

  • Sell something – garage sales, eBay, craigslist, etc

  • Provide a service – pet sit, cater, decorate, personal shopper, ghostwriter, baby sit, clean homes, etc.
6. Start today! It's never too late.

Are you actively managing your Me, Inc? Do you have any tips to share?


Tam said...

I think you offered some fabulous tips to avoiding a personal recession. I had my first ever garage sale during the spring and surpassed my target amount. So, I had another one in Sept and once again, met my target amount and then some! It was quite interesting to see 'well to do folks' coming out at the crack of dawn to find a cheap deal on some good stuff! In fact, I am one of those folks!! My latest fabulous find...a portable booster seat w/tray still in the original box...$1.00!

jpkittie said...

I really like #6!!!

thanks for stopping by my blog!

Ms. MoneyChat said...

Tam... It amazes me how much money people earn from their garage sales. Now I may not be there at the crack of dawn, but I do like a good garage sale;-).

jpkittie... I agree because the success of 1 - 5 depends on #6. Thanks for your comment.