With gas prices and unemployment rising, the real estate market and the US dollar declining, knowing how to protect yourself during tough times is indispensable. Here are just a few suggestions that might help.
One of the first things that many people cut from a budget in hard times is insurance. This is one of the most important financial protectors you can have in a rough spot. Keep your medical, life, mortgage and auto insurance.
Try to cut back on expenses that aren’t necessary. That seems like an obvious solution, but really go through what you are spending each month and prioritize what is necessary and what you can live without.
Work with your creditors. If things get really bad and you can’t make a payment, don’t shut off your phone and throw your mail away. Try talking to them to work out some kind of payment plan. If your credit score goes down because of a collection, it can increase payments on all of your other bills.
Make yourself stand out at work to prevent being a casualty of a layoff. Show your employer they cannot run their company without you.
Most of these tips are obvious, but a lot of people wait to implement them until it is too late. If used as a preventative measure, it is possible that you can survive and even thrive in a tough economy.
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