How to Survive a Recession: When Slightly Crazy Works

Written by Scott

Topics: archives, Uncategorized

There is no doubt about it: we are in a recession. But despite political punditry, there is no comparison to the Great Depression….even the Federal Reserve Chairman has said as much. Regardless, though, most of us will (or at the very least should) begin to examine our spending–and income–more closely.

There is a myriad of articles about things you could do during these tough times. And most of them make sense. But for the most part, that’s not what I’ve done….which is where the “slightly crazy” comes into play.

My Tips for Surviving a Recession

1. Cash out your retirement. Financial planners (and some of my friends) will not be happy about this. But shorter-term, is it not better for those funds to lose money to YOU rather than the market? I withdrew mine in October…as it turns out, putting that into an interest-bearing savings account actually has earned me money rather than lose. Besides, even our President-elect has spoken about temporarily doing away with the penalties for early withdrawal. So pay off debt to put yourself in a better and more stable place. Or use as a cushion.

2. Quit your job. Sure, it may seem stable. The people may be great to work with. But times like these are times of opportunity. Especially if you did #1.

3. Work for yourself. If the economy truly does tank (which is highly unlikely), it’s not the big corporations that will sustain families. Only your skills will provide the stability.

4. Cut back. Not just because of the economy, just because. Be less of a consumer and more of a producer. Ok, so this one isn’t so crazy…cut me some slack. Still needed to be said. Or written.