- August 2, 2022
- Posted by: Curated Contributors
- Categories: Banking Services, Blog, Save Money On
Attention Lendzz.com readers: We’re pleased to share another wonderful article from our friends at AdultingDigest.com that discusses some tips for surviving the next recession. If you haven’t already, visit AdultingDigest.com for a wealth of knowledge on budgeting, saving, and more!
With growing concern that we’re heading towards a recession, many of us are thinking about how we can best weather the storm. The economy may be struggling but you don’t have to – with the right insurance policies, smart business strategies, and careful spending, it’s possible to make the best of an unfortunate situation.
Tips For Surviving The Next Recession:
f you have a credit card (or a few of them), it’s important to clear your debt before interest rates rise or you lose the means to do so. There are a few key ways to do this – you could try asking your credit card issuer for an interest rate reduction or you could try a balance-transfer credit card with lower rates. There are other risks with this strategy but, for some, it could prove advantageous.
Protecting yourself from misfortune is crucial in the lead-up to a recession. Investing in a home warranty, for example, could save you from paying huge fees for home repairs. A warranty is key in this instance as homeowners insurance only covers damage to your home’s structure, theft of belongings, and injuries that have occurred on your property – not home systems or appliances. A warranty provides an annually renewable contract that covers heating, cooling, electrical, plumbing, and appliance system repairs. Make sure to carry out plenty of research online for tips to find the best home warranty company.
Just as important as your actions during a recession are your strategies in the lead-up to one. It’s important to save while you can – if you have available income, make sure you’re placing it into a savings account or into assets that you can easily liquidate. This cushioning will prove vital as employers are forced to lay off their workers or if your means of income are impaired by unforeseen circumstances. To make space for more savings, it may be necessary to cut down on regular expenses by reducing electricity, canceling subscriptions, or shopping for better rates.
Insurance policies tend to be more expensive than work plans and government exchange or individual policies can prove to be more restrictive, so, whilst you have coverage from an employer and your income is in-tact, it’s important to get checked up. Recessions have been found to be detrimental to our physical health over time, affecting mortality and morbidity – make sure you’re entering into this period of uncertainty with confidence.
Before and during a recession, purchases can begin to look a lot more like investments. Before you make intentional purchases, it’s important to carefully vet the provider – reading product reviews to check ratings and ensuring that whatever you buy is going to have lasting value over the next couple of years. This includes when you’re shopping for pets.
If you’re already a business owner, an entrepreneur, or you simply don’t trust the reliability of your current employer, it might be worth considering expanding, re-orientating, or founding a new venture entirely. Recession-proof business ideas include accountancy services, repair services, or childcare providers – if you’re able to identify an area of high demand, you might even be able to thrive amidst turmoil ahead.
A recession can bring many challenges but, above all, you should expect uncertainty. If you’re able to meet the rising demands with preparation (such as with ample savings) and with ingenuity (such as with new business ideas), you may find yourself thriving amidst unlikely circumstances.
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