Special series - how to survive a recession, part 4

Special series - how to survive a recession, part 4

I have written several articles on how to survive a recession here on my ideas on how to become rich site. You can navigate to the articles on how to survive a recession here:

Special series - how to survive a recession, part 1
Special series - how to survive a recession, part 2
Special series - how to survive a recession, part 3

In this post I shall be dealing with ideas on how to survive a recession if you happen to be hard hit by a recession. The first and most important idea is that prevention is always better than cure, and that sound financial planning and sound savings plans should have been the most important thing before any recession strikes, or for that matter, before any depression strikes (where a depression is basically a worse and prolonged version of a recession).

The question is: how do you survive a recession if you happen to be hard hit by one? Here are some practical ideas on how to survive a recession if you happen to be hard hit by one... good luck!

1. Education is important. Get more education and more skills.

There are many types of education, some professional and some academic. Now is the chance for you to pursue higher education or some form of learning where you can acquire new skills and new abilities that can be applied to finding and maintaining a job. The key fact is that in the 21st century, earning money will be tied to knowing skills and knowledge that can help you make money and help you work better. Education is more important than ever before to help you make money, and people who skip school or have not attained education are more likely to suffer from structural unemployment. That is not a palatable fact, but it is true that to earn money in the new knowledge based economy that is globalised, knowledge, education and skills are key critical factors to earning money and making a living.

With respect to financial education, sites like mine provide ideas, and you can actually get financial certification that will put you in good stead when the economy recovers. Try an MBA, or an accountancy degree, or some other financial certification such as an ACCA, CFA, CPA and the like, as these financial certifications will be very useful to you, job-wise as well as financial knowledge-wise. Prevention is always better than cure, and therefore not getting into a bad situation in a recession is always a good idea.

2. Adjust your expectations, in terms of job scope, salary and wages. Try out for other jobs, maybe even lower paying ones.

Usually recessions lead to massive unemployment because people get laid off. The thing is that if you happen to lose your job, that is not the end of the world, because you can find a new job - if you are willing to take the hit on the income and willing to work longer hours for lower wages. The question is how to survive a recession, remember? Hard work, lowered and adjusted expectations, and the willingness to adapt to the changing economic conditions - all are the necessary things to do.

3. The most important thing of all that you must do in a recession - tighten your belt!

The most important thing to do during a recession is to make the necessary reductions in expenditure, which basically means that you have to spend less. Spend less, spend less! You can spend more when the economy recovers and when you have a high paying job. The reality is that sometimes people are forced to do things out of necessity, and surely a recession is one of the biggest factors forcing people to spend less money, which they should during a recession.

Some financial advisors have even suggested cutting up credit cards and downsizing or even moving to smaller homes and selling home objects, although that might be very extremist. Just reduce expenditure, and there should be no need to go to such extreme lengths. If you need the money, however, then there might be no choice and you would have to bite the proverbial (financial) bullet.

The basic key and basic strategy for surviving a recession is therefore to reduce costs and try to increase income, if one has been laid off and has lost a high paying job. Maxim to live by during a recession - attempt to reduce costs and maximise income!

In the final analysis, more research is needed. My website helps people by giving financial education, investment schools of thought and their analysis, and investment knowledge, as well as ideas on various ways of making lots of money and becoming rich. I have come to the conclusion of the series on how to survive a recession, because ultimately this is not the focus of my site, and my site is basically about how to make money and how to become rich, and is mainly about ideas and education in investment, financial education and other such stuff. Recessions are not my cup of tea, because as I've mentioned prevention is better than cure.

Thanks for reading, take care, and all the best. More to come on my website on finance and making money so as to become rich! Thanks.

Ideas on how to become rich!