| In early 2008, recession is definitely the buzzword of | | | | 1. Refinance your mortgage. Almost every time we |
| the day. Before we talk about how to stay afloat | | | | are heading into a recession, or already there, the |
| during a recession, let's define what a recession is. The | | | | federal reserve will lower interest rates to stimulate |
| simple definition is this: An extended decline in general | | | | the economy. If you're in a high-rate mortgage, |
| business activity. However, when you hear about a | | | | refinance now. Not only will it lower your payment, you'll |
| recession in the news, they are typically referring to | | | | save thousands of dollars in interest over the long |
| the broader definition with reference to the country's | | | | term. |
| economy. | | | | 2. If your finances are tight, resist the urge to splurge. If |
| The National Bureau of Economic Research formally | | | | you don't need it now, wait until the recession is over. |
| defines a recession as three consecutive quarters of | | | | You'll thank yourself later. |
| falling real gross domestic product. | | | | 3. Keep your job. Employers feel the squeeze during |
| Surviving during a recession (whether it be | | | | these times, too, so make sure you are not a |
| broad-based, just in your state, city, or even company) | | | | dispensable employee. Shape up if you have to, and |
| is no easy task. Money is tight, and for most | | | | make sure now more than ever you are doing what's |
| Americans, this means that before you were making it | | | | best for the company. |
| from paycheck to paycheck, but now you aren't. That | | | | 4. If you happen to have a little extra spending cash, |
| squeeze can have many effects, many of them not | | | | now is a time for good deals. Companies need to |
| just financial. Stress leads to depression, which leads to | | | | stimulate sales, so they will be offering their best deals. |
| decreased productivity, and the cycle continues. | | | | Just like mortgages, if you've had your eye on |
| The first key to surviving a recession is to realize that | | | | something special (and you have the funds) now's the |
| it will be over soon. Most recessions typically last for 6 | | | | time to buy. |
| to 18 months. This can seem like a long time during the | | | | 5. Don't stress out. If you're struggling financially, so is |
| recession, but it's really not that long in the larger sense | | | | almost everyone else. Just track your money closely, |
| of things. | | | | don't spend more than you earn, and take extra time |
| Here's 5 things to do to manage during a recession: | | | | appreciating the things that matter most in your life. |
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