How to Survive a Recession 6 Tips on Surviving a Financial Meltdown

How to Survive a Recession | 6 Tips on Surviving a Financial Meltdown

April 10, 2018

The recession is considered to be the hardest part of an economic cycle as at that time the economy is leaving the best time and moving towards the worst. Some of us may feel that recession would not affect us, but it does little or more, recession affect us all.

For fighting any situation, it is essential to know all the details about it. So do not sit back and think the unusual, take preventions when you must and take measures when you should. Following are the six rules you must follow if you wish to survive the recession.

  1. DROP EVERYTHING THAT IS UNPROFITABLE

The recession is a hard time, and we get it but do we have just to sit down and brag about it until we have an empty pocket? Most certainly not! List down the things you have and categorize things that you know will not going to benefit you, monetarily.

Selling a car that may require more attention, financially, can only be a liability in the time of recession or an appliance that would require things to be added up more frequently. Try to eliminate such non-profitable things from your life and repurchase it when you think it could be a valuable purchase.

Few people keep such liabilities with them and do not use it and think that they are safe but electronic things get depreciated more when they are not used.

  1. FOCUS ON WHAT YOU HAVE

In the bad times, it is almost impossible to keep one’s focus on things that are in their possession and doing well. As a human, we tend to give more attention to the things that are out of our control and pay little attention to things that we have.

In such times, learn to be more and more focused on things that are in your control and make it work for your benefit rather than crying over the spilled milk.

  1. IF YOU CAN THEN PURCHASE

I have asked you to sell out few things during the recession, and now I am asking you to do the opposite. Why so? I asked you to sell that stuff that seems to be a liability but buy the stuff that may be a good investment for your future, like gold.

In the recession, things get cheap during this time. So, if you can afford to buy something; if not huge than small, buy it now as an investment for future.

  1. STRENGTHEN YOUR BARGAINING POWER

Here is the time where you should utilize your bargaining skills as much as possible. Things get different, ones you had the purchasing power but now you do not; you have to think before making every purchase.

If you are not good at bargaining, ask someone who is good at it to bargain on your behalf (this is what I do) meanwhile practice this skill for yourself.

  1. SWOT ANALYSIS

If you are not aware of this acronym already then let me elaborate it for you. SWOT stands for Strength Weakness Opportunity and Threads. We take this analysis every once in a while in a company to know where we stand, what is good for us and what is pulling us back, who are our rivals and what gives us opportunities.

Analysis your situation in this criteria for being more aware of yourself this way you would plan your strategy in more accurate manner.

  1. GIVE YOURSELF SOME BREAK

I know that you are worried about your finances; your kid’s school and your own job but relax and take a deep breath, things will be fine again.

Learn to be good to yourself for a change, and you will see positive things happening to you.

 

Author Bio: Sarah Smith has been a personal finance author for the last five years. She is also, an independent and very passionate finance and investment advisor. She regularly posts at  PersonalIncome.org.

 

Topics: Finance

 

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