Your 2009 Recession Survival Guide

Countries in the world are now affected by the economic recession faced by the United States. Many claim that what we have been experiencing and are currently experiencing is a global financial crisis. Whatever we may be facing, it is important to make sure that we get through these tough times.

We need not fret or just sit around and wallow in this economic recession. There are a few pointers we can consider to get through. First, you have to make sure that you live within your means. During times of recession, the personal disposable income of individuals is compressed. You wouldn’t want to find your self in knee-deep debt, so better live with what you have and try to clear your debt.

Second, you must make sure that you check your habit. Create a list of your priority buys and payments. Instead of getting money out of your pocket to buy unnecessary stuff, first consider bills which need to be urgently paid and mortgage rates and so on.

This is also a good time to refinance your home. A recession usually brings treasury level down, which results to lower mortgage interests. This is a good time for you to refinance.

Given that unemployment drastically increases during recession, you must do well with your work. If you think you have been doing well in your work, now you have to do better. In times of retrenchment, those who do better will be the last options. It is also good if you have back-up saving in case you lose your job. You are encouraged to at least have savings which could last for six months of expenses. In case you loose your job you won’t need to expand your credit just to survive. Food prices may also go down during this time. They may not rapidly drop, but it would lead there eventually. Food prices went up the past months because of the increasing price of gasoline which is essential when transporting food. Now, the gasoline’s price went down so farmers just need to recover from the high prices they faced the past months.

This is also a good time for you to buy a home. House prices have fallen around 10-20 percent their usual price. As a good customer, you must know how to negotiate when buying. Paying cash will, most of the time, allow you to have discounts. Also , if you have been a good customer, companies wouldn’t want to lose you so they will try to compromise with your demands.