Economic Slowdown | How to survive | 5 Money Steps

by Admin on 01/07/08 at 12:41 am

Here are 5 money steps to help insure that you can keep a cool head and survive the current economic slowdown. It will run counter to what the government wants you to do, especially in regards to those stimulus checks, but you need to protect yourself.

  1. Save $1,000 as soon as you can. This is for any unplanned emergency only. You can’t not afford to get caught without any money.
  2. Save 3 to 6 months worth of essential living expenses. Housing, utilities, food, car, insurance, etc
  3. Pay off all credit cards starting with the smallest balance first. As you pay them off, apply the previous payment to the next highest balance and so one. This is a great momentum builder.
  4. Eliminate all other loans and debt. For example, car loans, student loans, etc…
  5. Last but not least, accelerate your mortgage by applying all those other payments or extra payments if you didn’t have that prior debt to reducing your mortgage. If you don’t own a home, save up for a down payment for a new one. Save at least 20%. Most lenders have super strict requirements anyway and you may not have a chance with at least this much in the bank.

There you have it. Nothing real ground breaking but if you want to survive this econonmic slowdown, and your money habits weren’t the best this will at least provide a road map to help insure that you have a level of security during the tough times ahead.

Also if you haven’t read it yet, check out my recession survival guide series.

Leave a Comment