Financial downturn can be a scary, scary thing what with unemployment on the rise and people’s finances spiralling into debt. You could be forgiven for holing up in your home and hibernating for the next few years with a “do not disturb until the economy grows by 2%” sign on your door.
Don’t be fooled, however! The way to beat the recession isn’t through lily-livered passivity, but by tackling it head on. It’s time to put on your financial fighting gloves and show that downturn who is boss.
Get Your Stance Right
Every boxer knows that if your stance is poor, your punches will be too. The same thing applies to fighting back against the recession: If you start with a weak foundation you’ll never be able to make any impact on your financial woes. In this case, that means getting a handle on your outgoings, especially existing debts.
While credit cards are often a good way to finance small borrowing, for homeowners a secured loan may also be a good option. A secured loan let the loan provider take the value of your house as security, meaning that - as there is less risk to the financial institution - you can often negotiate longer repayment terms. Also, providers are usually more willing to offer secured loans to customers with a poor credit history, ideal for those in an on-going battle with the recession. It’s important not to take on a secured loan for more than you can repay, as your house could be at risk if payments are missed, but the possibility is worth exploring as this can be a great way to consolidate your debts.
Fix Yourself Up
Boxers retire to their corners when they need fixing up. Split lips, cuts and bruises: there’s nothing that a sticking plaster and the magic sponge can’t sort out. If you’re a recession warrior, on the other hand, it’s not you but your possessions that need the TLC to keep them fighting fit.
By properly maintaining your household appliances you can make sure they run for longer, and stave off buying new fridge or washing machine until it’s really needed. For example, by defrosting and cleaning down your freezer regularly you can reduce strain on its cooling elements, leading to a double blow against the downturn thanks to improved efficiency and a longer appliance life. Other good appliance-saving tips include ensuring your vacuum cleaner is regularly freed from gunk and dust that may have accumulated in it, and making sure you don’t overfill your washing machine.
Strike a Blow the Recession Can’t Withstand
Many recession warriors are satisfied with reducing their out-goings and sorting out their debts. However, for those who really want to deliver a knockout punch to financial doom and gloom, there’s always the option of switching to a recession-resistant career.
It’s well-known that some industries are always in demand, no matter what the financial climate. Look at healthcare, for instance. People don’t stop getting sick just because the markets aren’t looking too good, hence being a nurse or doctor is often seen as being fairly free of the ups and downs of a recession era. It’s a similar story for teaching staff and (for the less squeamish) undertakers.
There are other, slightly less obvious industries that offer a degree of recession protection, though. For example, we are so dependent on computer networks these days that a qualified network technician will virtually always be able to find work, as will accountants and underwriters. Remember: while financial slowdown takes its toll on a lot of industries, there are some that actually thrive on tough times. If you can find the right niche for yourself you’ll have the recession begging for mercy in no time.
Wendy Derbyshire is a homeowner who is always on the lookout for best money saving tips and so has given the recession a bloody nose on many an occasion. Her top tips for success include eating right, fancy footwork and applying for the right secured loan.