Financial Survival Guide

Last week, I read a rather concerning article over at where the author, “J-Money” was wondering if he would keep his job until the end of the day. The company he is working for had some financial issues and there were some management changes taking place. Therefore, they were reviewing the entire business structure.

This is usually what happens when companies go through recession; they revise and restructure. They make sure to cut their budget in order to increase their cash flow so they can continue to operate. Most companies don’t wait to react until they read that the recession has arrived in the newspaper. They have already structured their own survival guide to recession way before the business starts declining and they make the move before their industry gets hit.

This is how each individual should manage their own financial situation; with a well planned survival guide to recession. The best plans don’t have to be complicated. In fact, when things turn sour and you lose your job, you don’t need a 10 page plan to get out of this mess; you need a quick and applicable solution. So here’s my survival guide to recession in a few easy steps:

Rule #1

Have accessible money. In a beautiful world, we would call it an emergency fund. Unfortunately, having $5,000-$10,000 stashed in a high yield savings account is not an easy task. This is why having a line of credit (that is not used!) could be a very interesting solution. If you have access to 5 to 10K in credit without having going to the bank in the middle of a recession (because they won’t lend you money if you just lost your job!) could be a good plan B. The last option would be to apply for a 0% APR balance transfer credit card to pay off your outstanding debts and buy some additional time. They usually offer a 6 months to 12 months 0% APR so you have enough time to get another job.

Rule #2

Have an active network. Building and maintaining a good social network is a lot of work. However, it’s your best way to get another job back quickly. The more people you know, the more people they know, the more chances you have to fall on someone who is looking for a good employee in your field. When you are looking to survive a recession, you need to stick together with your friends and connections. Keep in contact with your old friends and colleagues. Send them an email once in a while, use LinkedIn or twitter to keep in touch. As most jobs are found through an individual’s connections, I think it’s worth the effort to keep your network alive.

Rule #3

Know what your next step is. If you’ve never considered the possibility of losing your job tomorrow, you’d probably be very surprised to show up to work and find an envelope on your desk one day. About once a year, I think of what I am doing right now and what I would like to do in the future. I make a list of jobs I would like to do and look at the competences/diplomas required. If I don’t have them, I start working on it right away. Part-time school is an ideal solution to keep a good social network alive and provide more tools to fight the recession.

Rule #4

Build a sideline to survive the recession. Having a small sideline that generates a few bucks per month could be enough to make you go through the recession. As we are talking about survival and not creating the next billionaire company, any sideline would do the job just fine. If I ever lose my job due to a recession tomorrow, I would still be able to rely on my savings and my blogs to survive for a few months.

Rule #5

Keep track of your expenses. What is the ultimate tool for your survival guide to recession? You budget excel spreadsheet! If you know where you money is going on a monthly basis, it will be easy for you to know where to cut down and how much you will get in your pocket if you have to find money for the end of the month. Surviving through a recession is not fun, but there are ways you can do it without leaving an arm and a leg behind!

Rule #6

Make a list of items to sell. If you don’t have much liquidity, you can always rely on some great items to sell on Ebay. While you won’t become rich and you will probably won’t get what your item really worth, you will still be able to survive the recession and gather enough money to pay for your rent at the end of the month.

Surviving a recession is not fun – but it can definitely teach us a lot about finances. Economic-crunch survivors are always stronger, wiser and in a better position the next time they face financial challenges. So make sure to get your survival guide to recession in place so you don’t lose everything if you lose your job…


About The Author

Casual blogger discussing personal finance and the conspiracy behind it. Currently, I am writing about survival and how to survive the coming collapse in our economy and world.

4 Responses

  1. Dhan

    I have question?
    What if your so sure that the whole world is going to end and the people that you love the most aren't with you all the way?And at the age of 12 theres not much to do.Looking at your clock right now I have a very short amount of time to prepare for the upcoming chaos that is coming.With a very tight budget, what is there to do,after convincing her whats happening I can't do it.So if you guys out there are listening please.My parents aren't really into my idea and thinks that its a holks but I need some relief.Please help.

  2. Dhan

    HI,I'm a normal kid at the age of 12 and after listening and waiting for whats coming I just couldn't help it.Trying to sleep at night is horrible.What can do if your on a stiff budget,scare as hell,and can't afford supplies or convince your parents to whats happening,nothing,nothing but wait as it eats you up.Staring at this clock of doom is sad but what is there to do.Typing this in the middle of the night is …………………………………………… can't say much more but if anyone reads this please let us seek out some refuge from whats to come.This I your regular neighborhood kid signing off.

  3. Dhan

    Hi,can anyone help me seek refuge for any support from the upcoming apocalypse?

  4. Res

    Learn how to garden. Start with a container garden, or sprout things any time of year (so cheap, great to add to sandwiches!) Your parents are more apt to support your new hobby, and it's invaluable to learn how to grow your own food.


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