The National Bureau of Economic Research declared that the U.S. economy has been in a recession since December of 2007. A "recession" is defined as 'two consecutive quarters of negative growth'. In other words, if the U.S. economy shrinks during any six-month period, it is in recession. And recession means bankruptcy, declining business conditions, falling sales, higher unemployment, store closings, and leaner times for everybody. In this day and age being broke means being out of ideas. The ideas found in this article will give you the edge you need to keep you in the game, and they might just make all the difference in what comes next; so let's get right to it.
First off, bear in mind that six months of joblessness can cause a reduction in the standard of living for an average family that can take as much as several years to recover from. What to do about it? DON'T BE LATE FOR WORK. Human Resources managers have already commented in the printed media on how astonishing it is to them to learn how many people casually arrive late for work more than once a week. If you are doing this, then you are just asking to be fired. Also, make yourself indispensable at work. Be available for extra work and projects. Try to build a case as to why you make or save your company money.
Do not be tempted to cash in your IRA or 401K. There will be taxes and penalty issues that you are not ready to deal with at this time. Do not take my word for it, go research this. When it seems to you that the worst of the stock market declines has come and gone, consider instructing your employer or administrator to be aggressive with your allocation of assets in regard to growth stocks. Only do this if you have more than 5-10 years before you retire.
Reserve your money for necessities: food, clothing, shelter, transportation and such. The trick is to deliberately live below your means, and this is a lot easier if it is choice rather than a condition imposed on you. Make a fun game out it if you can.
If you are relying on credit for cash flow, or are spending more than you make, you're in trouble. You must either augment your means or reduce your living expenses.
Try to increase the amount that you would normally put in to your savings. Volunteer for overtime. Find suitable part-time work or build a viable home-based business. Freelance writing can help bring in extra income. You can be an article writer for Mooker and develop the necessary writing skills that later can lead to winning bids for contract work on sites like Elance.com. In the mean time you can place affiliate links within your Mooker articles that can earn you a current income.
The essential principal that we are driving at here is DIVERSIFICATION OF INCOME. Have another source of income besides your job.
If you can, build an emergency fund. Try to pay down your credit accounts a little faster, and consolidate your insurance bills if you can.
Investigate the viability of food cooperatives. If they are not available consider shopping bulk at the big box club stores. Make good use of the Internet. If you need to buy home improvement items (wallpaper & paint etc) know ahead of time that there are websites where you can bid on and buy store gift cards at a discount including the type issued by Lowes and Home Depot. Use these discounted store cards to finance your home improvements.
Understand that your long-standing credit lines given to you by your banks can be revoked or have their terms adversely changed with very little notice to you. This includes your credit cards and possibly your home-equity loan. Refinance your home loans only if there is a truly compelling case for it.
Learn more about the subject of BARTER. There are many good books on the subject in the library or try Amazon. Barter is a way for average Americans to acquire much of what they need in the way of tangible goods without any cash changing hands. For more information about this AND to read an astonishing true personal story about the barter game go here:
One Red Paperclip: Or How an Ordinary Man Achieved His Dream with the Help of a Simple Office Supply
About The Author:
This artice was written by Mark Soveign who owns and operates Wertheim Communications LLC and is a contributing writer to howto-investing.com