- Building up a six to twelve month emergency fund.
- Stockpiling a bit of cash at home for smaller financial emergencies.
- Paying off debt (ALL debt--credit cards, student loans, car loans, home loans, etc) as quickly as possible,
- Developing multiple sources of income.
- Living below your means.
- Diversifying your investments.
- Keeping your credit score high.
- If you are a two income family, be able to live on one income; if you are a single income family, be able to live on half your income.
- Expanding your job skills.
- Downsizing, if you are living beyond your means (get a cheaper car, move to a smaller house, etc).
- Stockpiling a good amount of food and consumer items (like toilet paper, soap, shampoo, etc).
While the aforementioned items will hold you in good stead during a financial recession, those same preps will help you through almost any other sort of emergency as well.
Very good tips. I'm working hard to succeed at all of them (especially paying off debt), and I'm thankful that I have your blog as a resource.ReplyDelete