First, let’s get one thing straight. The difference between a recession and a depression.
A recession is an economic downturn characterized by an uptick in unemployment. They normally at least 6 months. A depression is more severe and may last years. There have been 8 recessions since 1960, according to The National Bureau of Economic Research. Bet you didn’t know that! I didn’t.
So surviving a recession isn’t so hard, especially if you are lucky enough to keep your job. Here’s a few things you can do beforehand to get ready for one:
Keep your debt as low as possible. I get it, that new gadget is really hard to resist . But do you need it? Is it worth buying now and paying interest for several years? Interest is low right now, but it might not be in several years.
Stash some cash. Forget what the experts say about saving enough to cover several months of your expenses, that’s unrealistic for many of us. But save something. Every bit helps.
Remember the old saying—waste not, want not? I had a friend who used to throw away things that were old but not broke. (She’s not a friend anymore.) She didn’t want to be bothered with storing them (which I understood) or donating them (which I didn’t understand.) We as a society are too quick to discard things. I’m a strong proponent of recycling and believe that might save us some problems down the road.
But what to do if another recession hits? First off, don’t worry about maintaining your current lifestyle. That may be a losing proposition. Instead, figure out a new lifestyle that is sustainable Can you live on unemployment and food stamps? (in the US)
Grow your own food. Well, not all of it, but start with fresh vegetables and spices. Even if you live in an apartment, there are some you can grow on a windowsill. Eat out less and cook more.
Live simpler. How many pairs of shoes do you need? Same goes for everything else you buy. How many TV channels can you watch at once? In fact, turn off the TV and read a book (and save electricity at the same time.) You can borrow them from the public library for free.
Learn how to fix the things you already have. Sew on a button or change the hem yourself instead of taking that outfit somewhere else to be fixed. By the way, bartering is a way to get goods and services without spending money and it works. What are you good at that you can use as a bargaining chip?
Like to travel? Take day trips instead of week long trips. You’ll still need to buy gas but you’ll save the cost of a hotel room.Or, go primitive camping. See nature from the ground up.
How wold you adapt to a recession? Tell me in the comments. In the meantime, let’s hop over and see what the other authors have to say.
September 18, 2017 – The Great Recession. We have probably all heard of if not lived through a recession. If a recession occurred today, what would you do to sustain your lifestyle? What changes would you make?
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