Recession: 2 choices
(1) Either decide to be part of the Economy, (2) or become a victim of it.
I listen to people all day long say....."Due to recent economic crises, the stock market declining daily, budget cuts, unemployment increasing, global market conditions unstable, cost of insurance-- driving without it, electricity & gas bill sky rocketing this winter, taxes of all kinds increasing...... we regret to advise you that the Light at the End of the Tunnel has been turned off. We apologize for the inconvenience."
SOMEONE PLEASE TELL THEM TO TURN ON THERE HEAD LIGHTS, IF YOUR WALKING USE A FLASH LIGHT. OR BEST CASE OF ACTION, DO NOT ENTER THE TUNNEL.... Then you will enjoy 100% of the sunshine. The sun comes out everyday, some days are just brighter than others.
What makes me cranky is that millions of people believe it. Through no fault of their own, they believe their lives are now intolerable and their futures are doomed to failure while they sit paralyzed in a dark tunnel. These are the people that are becoming victims of The Recession. Get on your feet and do something.
Monday, March 16, 2009
Wednesday, March 11, 2009
Personal finance - how to survive a job loss
PREPARE, PLAN, & EXECUTE YOUR PLAN --- That's how you survive.
The dreaded “R” word – recession – has been dominating business headlines for months now. More and more economists are predicting bleak economic conditions and weak job growth in the coming months.
Even if you feel secure in your job at this moment in time, here’s a sobering thought: Because of forces beyond your control, you could be hit with an unexpected layoff at almost any moment.
For this reason, it’s always a good idea to plan ahead for potential financial emergencies before they strike. The following tips can help.
1. Establish an emergency fund. Set aside enough money to cover your basic living expenses for three to six months. This should give you the ability to pay your rent or mortgage, buy food and repay debts. Consider socking this money away in an high-yield money market account or a short-term fixed deposit.
2. Live within your means. Try hard not to spend excessively on items and services you don’t truly need. This will make it even easier to build up that emergency fund once and for all.
3. Use credit cards with great caution. Especially if you have a hunch that a layoff might be looming, be extra careful with credit. A credit card can keep you in denial about your true financial situation. Accumulating debt will only add to your stress – and you don’t need any more stress, whether you lose your job or not.
4. Talk about money with your partner. Even when things are going well, it’s common for one partner to be completely unaware that the other partner has different financial priorities and goals. A layoff – or the specter of a layoff – can put the spotlight on such differences and lead to terrible fights. To avoid this, talk honestly and set goals together about how to cope in the coming weeks and months.
5. Tackle high-interest debt. Before a layoff ever strikes, make sure you’re not letting debt hang around for months on a high-interest credit card. Transfer that debt to cards with lower interest rates, or consider paying it off with money from a personal loan from your bank. Then, as soon as you get another job, you can concentrate on paying back that lower-interest loan.
6. Network, network, network. Always make a point of getting to know as many people as you can in your line of work. By having plenty of friends and contacts in your industry, you’ll stand a better chance of finding work quickly if you lose your job.
7. Line up a line of credit while you’re still employed. If you own a home and you can see that a job loss might be coming, consider opening a Overdraft against property and keeping it open. Don’t tap into the Overdraft at all; just know that it’s there in case a real emergency hits. Some lenders – but not all – may charge a processing fee in 1%-1.5% range for opening the overdraft limit, but that can be worth it for the peace-of-mind factor.
8. Investigate your health insurance policy. Be clear on what your health plan covers and also whether it covers all members of your family. In case of a layoff, you sure do not want to have an additional expense on account of unforeseen illnesses. If you do not have a health insurance, GET ONE.
Find more on this and other finance topics at themoneybees.blogspot.com
The dreaded “R” word – recession – has been dominating business headlines for months now. More and more economists are predicting bleak economic conditions and weak job growth in the coming months.
Even if you feel secure in your job at this moment in time, here’s a sobering thought: Because of forces beyond your control, you could be hit with an unexpected layoff at almost any moment.
For this reason, it’s always a good idea to plan ahead for potential financial emergencies before they strike. The following tips can help.
1. Establish an emergency fund. Set aside enough money to cover your basic living expenses for three to six months. This should give you the ability to pay your rent or mortgage, buy food and repay debts. Consider socking this money away in an high-yield money market account or a short-term fixed deposit.
2. Live within your means. Try hard not to spend excessively on items and services you don’t truly need. This will make it even easier to build up that emergency fund once and for all.
3. Use credit cards with great caution. Especially if you have a hunch that a layoff might be looming, be extra careful with credit. A credit card can keep you in denial about your true financial situation. Accumulating debt will only add to your stress – and you don’t need any more stress, whether you lose your job or not.
4. Talk about money with your partner. Even when things are going well, it’s common for one partner to be completely unaware that the other partner has different financial priorities and goals. A layoff – or the specter of a layoff – can put the spotlight on such differences and lead to terrible fights. To avoid this, talk honestly and set goals together about how to cope in the coming weeks and months.
5. Tackle high-interest debt. Before a layoff ever strikes, make sure you’re not letting debt hang around for months on a high-interest credit card. Transfer that debt to cards with lower interest rates, or consider paying it off with money from a personal loan from your bank. Then, as soon as you get another job, you can concentrate on paying back that lower-interest loan.
6. Network, network, network. Always make a point of getting to know as many people as you can in your line of work. By having plenty of friends and contacts in your industry, you’ll stand a better chance of finding work quickly if you lose your job.
7. Line up a line of credit while you’re still employed. If you own a home and you can see that a job loss might be coming, consider opening a Overdraft against property and keeping it open. Don’t tap into the Overdraft at all; just know that it’s there in case a real emergency hits. Some lenders – but not all – may charge a processing fee in 1%-1.5% range for opening the overdraft limit, but that can be worth it for the peace-of-mind factor.
8. Investigate your health insurance policy. Be clear on what your health plan covers and also whether it covers all members of your family. In case of a layoff, you sure do not want to have an additional expense on account of unforeseen illnesses. If you do not have a health insurance, GET ONE.
Find more on this and other finance topics at themoneybees.blogspot.com
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