News about the health of the economy seems to be contradictory; on one hand, auto sales and the housing market are on an uptick, yet on the other job creation is flat. Too many articles are mentioning how few are benefiting from the stock market growth by either suggesting the rich are getting richer and the poor are getting poorer or flat out stating this as a fact.
I can’t help but believe that the divide between the rich and poor is growing ever wider. However, I also feel that at this moment in history, anyone who has the power to persuade others to act must tread lightly on such a delicate precipice. Too much government involvement to alter the economy and “even” things out and we’re left with a socialistic government, in contrast the absence of government may allow the divide between rich and poor to grow wider yet.
So how can any individual buffer themselves against such a delicate economic state of affairs?
Be prepared. Individuals can take action to lessen the blow to their own personal finances.
- Pay down and get out of debt if you aren’t already debt free. Make a plan, pay more than the minimum due and work towards freedom.
- Save some money. There are “standards” ranging from 3-6 months of living expenses to a percentage of your income. But starting with anything, $5 – $20 even, is better than nothing!
- Learn new skills. If you are completely dependent on one job or skill, learn a new one in case your current position dissolves.
- Be willing to cut back and live a different lifestyle. This one is hard. But sometimes, drastic measures are called for during drastic times. Cut the cable, get rid of unnecessary cell phone amenities, move to a smaller or less expensive place if possible.
- Plant a garden. Become more self-sufficient. One Hundred Dollars a Month shares examples of how she gets free food from her grocer as well as gardening tips.
- Double up. If you live near family, perhaps living with them will help ease the financial burden. Or if that just isn’t possible, rent out a room to a college kid, friend, or couch-surfer.
I don’t want to sound apocalyptic (too many zombie movies!) but sometimes I wonder about the future. History predicts that our economy will eventually rebound and the good times will roll again, but that may be a few years away. In the meantime, I’ve got 1-3 covered (or at least I’m working towards these goals) and really need to start thinking about number 4 and 5.
How have you weathered this economy?
6 Comments
We plan on starting a garden. We always tells ourselves this, but finally had a realistic talk about it last night!
@Michelle – I love the idea of a garden. Unfortunately, with a small balcony we’ve maxed out our space with potted inedible plants. Need to think up and not out. 😉
Our community garden is starting to produce. It’s great to be able to just tear a few leaves for salad. I can’t wait until more vegetables are ready. Yeah, it might take a few more years to get back to the good time. Meanwhile, we’ll just have to keep hunkering down.
@Midlife Finance – I’m looking forward to an improved economy, but I’m being realistic – thinking 2-3 years away!
I started an herb garden. Looking forward to having fresh tomatoes and cilantro in my Salsa!
This is a brilliant post – so helpful. I think #3 on your list is significant. When the job market is rough it’s helpful to have multiple skills. The old adage of ‘don’t put all your eggs in one basket’ is excellent for this situation. You’re a brand as an individual, make yourself marketable. I would add learn skills that will benefit you even in your nonprofessional life – some obvious example being learning to how to do basic car/house maintenance project, health and exercise knowledge etc.
Great post!