Survival Tips for Tough Economic Times

Survival Tips For Tough Economic Times

Share This:

During an economic slowdown, times can be challenging for many, often leading to layoffs, inflation, and rising interest rates. Economists suggest that the U.S. economy is not in the clear and may be approaching another recession in 2023, according to an Associated Press article. Knowing the signs of a recession is essential to help you determine when to cut spending. You can also look for extra cash by using these tips to help you survive tough economic times:

Understand your cash flow

Cash flow tracking is how your cash comes in and goes out each month- and to what. You may have bills that pay automatically at different times of the month. It may help to schedule your bill payments on one or two dates each month to help manage your cash flow. Use your paydays or investment disbursement dates to determine when works best so that you’re managing your cash appropriately for your situation.

Cut Your Expenses

While your finances may have thrived over the past few years, now is the time to determine where your money is going and eliminate unnecessary items. You may have to make some tough decisions. Still, it’s vital to get your expenses manageable in case you become unemployed or have an income-altering event occur.

Get Ready For An Emergency

If you have additional money, create an emergency fund that equals one, two, or three months of your expenses. Next, work toward fully funding up to six months of expenses in a savings account used only for your emergency as a cushion in case an emergency comes along at the worst possible time.

Go Back To The Basics

Make a list of things you pay for by subscription or membership to determine which can reduce to a lower rate or subscription level. You may have upgraded some subscriptions, such as an internet package, or streaming channels without commercials, for example. Determine where you are willing to cut back to save money.

Avoid The Temptation To Borrow

You may be tempted to use your credit card or borrow against your home or other assets for projects, etc. Or you may be looking at financing a new car. With interest rates likely increasing in 2023, you’ll pay more to borrow. Avoid the temptation to borrow now and finance once rates decline as they always do.

Look Toward the Future

While we don’t know when the tough times may end, look into the future to see what money is coming in and going out for the next three months. If there may be more going out, it’s time to cut more expenses or find new sources of money. Finding new money may include a part-time gig, selling a large ticket item, or a new job with more pay.

Talk to us today

Using these tips, you can withstand tough economic times. If you need more guidance, please be sure to talk to your financial professional today! You don’t have to go it alone.

© 2024 Trajan® Wealth LLC. Nothing in this blog is intended as investment advice, nor is it an offer to buy or sell any security. Please consult your financial advisor for questions about your personal financial situation. All investments involve risk, including the potential for loss. Trajan Wealth clients and employees may have a position in any of the securities mentioned. Portfolio holdings and other data are subject to change at any time and without notice. Additionally, the above links provided as a convenience and for informational purposes only; they do not constitute an endorsement or an approval by Trajan Wealth, L.L.C., of any of the products, services or opinions of the corporation or organization or individual. Trajan Wealth, L.L.C., bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. These materials are for informational and educational purposes and are not designed, nor intended, to apply to any person’s individual circumstances. It does not take into account the specific investment objectives, tax and financial condition, or particular needs of any specific person. Please consult with your legal and/or tax advisor before making any tax-related decisions.